UK homes install subsidised heat pumps at record level

Most UK homes use gas boilers to meet their heating needs but gas is a fossil fuel that when burnt produces planet-warming gases.

With home heating accounting for 14% of the UK’s carbon emissions, switching households from gas boilers to heat pumps is a key part of the government’s climate pledges.

Heat pumps use electricity rather than gas, so as the country moves to generating electricity from renewable energy sources, like solar and wind, heat pumps will be responsible for far fewer planet-warming emissions than boilers.

About half of heat pumps currently being installed in the UK are supported by government funding – the remainder are made up of commercial installations and new builds which do not receive support.

One of the most popular government support mechanisms is the Boiler Upgrade Scheme, which provides a £7,500 grant to households to offset the cost of installation.

Ed Matthew, UK programme director for think tank E3G, said the decision by the previous government to increase the grant by 50% has had the biggest impact on the installation figures.

"It has been absolutely critical for making it affordable for households to buy this technology," he said.

In its first year, the scheme only spent a third of the funding allocated due to low public interest. But for 2024-2025 it is expected to overspend its budget.

Mr Matthews said it was critical that in the government’s June spending review it recommits to the programme and provides greater funding for low-income households as the current costs – even with the grant – can be prohibitive.

"They do not want to take their foot off the brake here. If they suddenly start slashing the heat pump grant that’s going to make the market crash," he said.

He also "strongly welcomed" the government’s announcement on Thursday that it was launching a new communication campaign to build public understanding of heat pumps, which he hoped would combat misinformation about the technology.