London Daily

Focus on the big picture.
Thursday, Nov 05, 2026

Heat pumps: Lords slam 'failing' green heating scheme

Heat pumps: Lords slam 'failing' green heating scheme

The government's flagship green heating scheme has been described as "seriously failing" by a Lords inquiry.

The Boiler Upgrade Scheme grants households £5,000 to help switch from a gas boiler to a low-carbon heat pump.

On Wednesday, the Lords Net Zero Committee said grant take-up is so low the national target for green heating is "very unlikely to be met".

The government responded by saying it would launch a marketing campaign to make people more aware of the scheme.

Heating in UK homes produces nearly 17% of the country's greenhouse gas emissions, which are responsible for climate change.

To meet the UK's climate change targets, the government wants to install 600,000 low-carbon heat pumps annually within five years - currently only 50,000 are installed annually.

The Boiler Upgrade Scheme was meant to kick-start the heat pump industry in England and Wales, and reduce the cost of installation for homeowners.

But in her letter to the government, Baroness Parminter, chair of the Lords Committee, heavily criticised ministers for not doing more to raise awareness of the scheme - which is on track to issue just half of the allocated grants.

She told the BBC: "The scheme isn't working as well as it needs to. It is absolutely critical that the government boosts public awareness... we need to give people the confidence to know about why these changes are important."

Heat pumps use electricity to run and are three times more efficient than a gas boiler, so as we switch to renewable electricity homes will be cheaper to heat and produce less emissions.

Anthony Hibbs got a heat pump installed in his new-build home in Newcastle-under-Lyme through the scheme last year. He told the BBC his new heating system was "absolutely brilliant".

But he said finding information on installers and the scheme was difficult: "I had to look online and do a lot of research. It wasn't easy at first and I have never seen the scheme advertised as such."

The government's own research from Autumn 2022 shows 80% of people in the UK did not know what a heat pump was, let alone were aware of the scheme.

Anthony Hibbs said the Boiler Upgrade Scheme made a heat pump affordable for his family

A government spokesperson told the BBC: "We've recently launched a marketing campaign to further increase public awareness and will consider options to ensure our targets are met."

John Taylor, 71, another recipient of the BUS voucher, also said the government needed to make it clearer which installers to use: "I searched online and found cowboys out there. There is not a lot of guidance leading you to decent people - you are on your own."

There are an estimated 3,000 heat pump installers in the UK compared to 130,000 registered gas heating engineers.

The committee said the government is funding some training places for installers but needed to give more certainty to engineers that it is worth investing their time in getting retrained.

The problems with the scheme are reminiscent of the government's previous Green Homes Grant which was meant to support households with energy efficiency measures like insulation, but was scrapped after less than a year in 2021 for lack of installers.

But Rebecca Dibb-Simkin, Chief Product and Marketing Officer at Octopus Energy, which was praised by the Committee for its investment in heat pump design and training, said the scheme had boosted confidence in the industry and Octopus Energy has 50,000 people on its waiting list for a heat pump.

She said: "Government and business need to work together on this, we hope the grant will continue.

"We know we can generate demand, and the grant would help people with the cost… it's kind of a perfect relationship."

The committee has said that for lower- and middle-income households the grant is not enough, and they are being put off by the higher upfront costs of installing a heat pump compared to a gas boiler.

Even with the grant, Mr Taylor and Mr Hibbs spent £8,500 and £6,000 respectively on their heat pumps.

Stew Horne, head of policy at The Energy Savings Trust told the BBC: "That upfront cost is a real issue, and policy has to focus on addressing that... through grants or low-cost loans or through green finance."

He said that model was not new and was already being used in Scotland, where they also offer a free energy advice service to help households navigate installing a new heating system.

Countries like France and Germany have also pledged twice as much money to their low carbon heating schemes and offer larger grants for low-income households up to £9,700 to make heat pumps more affordable.

In her letter to government Baroness Parminter said additional support and funding needed to be offered to households, similar to the schemes in France


The Lords Committee for Environment and Climate Change said the government needed to expand the programme to match this scale and also guarantee that the unspent funding from Year 1 of the BUS - which they estimate at about £75m - would roll over to subsequent years.

The government declined to comment on what would happen to this unspent funding.

Baroness Parminter told the BBC she had made it very clear to government: "They have got to get that money back. It is not going to be acceptable if the underspend in the first year somehow disappears back to the treasury. The money was set aside for a good purpose."

Newsletter

Related Articles

0:00
0:00
Close
United Kingdom and Caribbean Nations Agree to Establish Formal Diplomatic Dialogue Following Reparations Discussions
Cambridge University Appoints Senior Barrister to Lead Independent Review into Death of Academic Jason Arday
Historic Hastings Castle and Kent Dickens Chalet Added to National Heritage at Risk Register Amid Deterioration Concerns
Incoming British Ambassador to Japan Calls for Deepened Bilateral Cooperation on Artificial Intelligence and Semiconductors
Milburn Review Urges Employment Revolution to Unlock Workforce Opportunities for Young Disabled Britons
British Healthcare Worker Evacuated from Democratic Republic of Congo to United Kingdom Following Ebola Exposure
United Nations Refugee Agency Criticises Government Proposal for Thirty-Year Earned Settlement Pathways for Asylum Seekers
Parliamentary Inquiry Warns United Kingdom Remains Exposed to Chinese Critical Mineral Dependencies
Bank of England Prepares Interest Rate Decision as Inflation Pressures Prompt Expectation of Four Percent Benchmark
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
×