London Daily

Focus on the big picture.
Tuesday, Aug 11, 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
UK Manufacturing Output Records Fourth Straight Month of Growth
UK Condemns Russian Torture of Ukrainian Prisoners and Recruitment of Foreign Nationals
Long-Lost Royal Navy Warship HMS Tiger Found in English Channel After 118 Years
Northern Ireland Finance Minister Seeks Urgent Treasury Talks Over Regional Budget Pressures
UK Government Targets Subscription Traps and Misleading Discounts in New Consumer Rules
Alleged Cartel Boss Daniel Kinahan Extradited From Dubai to Face Criminal Charges
AI Chatbots Challenge Traditional News Consumption and Raise Job Concerns
Andy Burnham Government Promises Crackdown on Exploitative Business Practices
UK University Funding Model Faces Growing Pressure From Unsustainable Student Debt
Government Urged to Subsidise Energy Bills for Vulnerable UK Households
UK Military Spending Plans Threaten to Deepen Infrastructure Funding Gap
Israeli Government Rejects US Peace Framework for Gaza
New Labour Government Signals Closer Economic and Strategic Ties With European Union
Amber Heat-Health Alerts Issued Across England as Temperatures Threaten 36 Degrees
UK Economy Expected to Grow Despite Energy and Supply Chain Shock From Iran Conflict
Foreign Social Media Accounts Drove Disinformation During Belfast and Southampton Riots
Record Number of Migrants Cross English Channel in Single Vessel as Smugglers Deploy Mega-Dinghies
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
Reports of Mark Zuckerberg-Linked Superyacht Declining Rescue Assistance Draw Maritime Scrutiny
Preserving Three Banksy Artworks in London Has Cost Taxpayers Nearly £150,000
Four Ugandan Athletes Disappear From Delegation After UK Sporting Events
French Authorities Report Channel Interventions as Cross-Border Migration Dispute Continues
Home Office Admits Error in Settled Status Case Involving Long-Term Italian Resident
Unite Calls for Independent Review of UK Budget Watchdog's Fiscal Forecasting Rules
Thinktank Calls for £175 Annual Energy Bill Cut for Low-Income Households
Foreign-Linked Social Media Accounts Amplified Recent Unrest in Belfast and Southampton, Analysis Finds
London Mayor Sadiq Khan Orders Westminster to Drop Proposed Soho and West End Hospitality Ban
Royal Navy Deployments to Monitor Russian Activity in UK Waters Rise 25 Percent
UK Economy Expected to Grow 0.4 Percent in Second Quarter Despite Geopolitical Pressures
Andy Burnham Launches Cost-of-Living Measures Targeting Subscription Traps and Misleading Discounts
Hyper-Realistic Reborn Dolls Draw Collectors Seeking Comfort and Craft
Gen Z Cuts Back on Dating as a Night Out Nears $200
Patients Turn to Artificial Intelligence for Therapy as Psychiatrists Warn of Privacy and Clinical Risks
Couples Embrace ‘Sleep Divorce’ to Protect Rest and Reduce Tension
Meta Ordered to Pay $567 Million and Change Facebook and Instagram Safeguards for Children
Up to only 10 Months in Prison for Swedish Officer’s Murderer Sparks Anger
Success: Nvidia Turned Gaming Chips Into the Engine of the AI Boom
Jorge Messi, Lionel Messi’s Father and Longtime Agent, Dies at 68
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Advertising trick: Pepsi’s Harrier Jet Commercial Led to a $700,000 Court Fight
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Air Traffic Control Outage Grounded Flights Across the Midwest
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
Partial Solar Eclipse Expected to Draw Interest Across Southwestern UK
UK Graduate Job Postings Fall 7% as Entry-Level Opportunities Remain Scarce
UK Private Sector Returns to Growth as July Activity Reaches Highest Level Since April
UK Summer Drought and Wildfires Raise Pressure for Stronger Environmental Measures
×