London Daily

Focus on the big picture.
Friday, Sep 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
English Councils to Gain Power to Introduce Tourist Taxes by 2028
Kemi Badenoch Reshuffles Conservative Shadow Cabinet
Firefighters Make Progress Containing Major Wildfires in South Wales
John Lewis Partnership Reports £124 Million Loss
Study Says UK AI Data Centres Will Create Only a Quarter of Forecast Jobs
UK Government Considers Higher Industrial Water Prices Amid Supply Pressures
Andy Burnham Holds First Call With Donald Trump as UK Prime Minister
NHS Records Busiest Summer on Record as Heatwaves Drive Hospital Admissions
Home Secretary Orders Police Crackdown on Far-Right Anti-Migrant Vigilantes
UK Supreme Court Rules Northern Ireland Religious Education Curriculum Breaches Human Rights Standards
Markets Price in Four Bank of England Rate Rises by Next Summer
House of Commons Prepares Free Vote on Assisted Dying Bill
UK Government Bans Trade With Israeli Settlements in Occupied Territories
UK Economy Grows 0.4% in July as Artificial Intelligence Investment Supports Expansion
Andy Burnham Becomes UK Prime Minister After Keir Starmer Resigns
John Lewis Partnership Loss Widens to £124 Million
UK Government to Put White Working-Class Social Mobility at Centre of Equality Policy
McLaren Plans £450 Million Technology Investment Creating 1,000 UK Jobs
UK Chancellor Faces Calls for Wealth Taxes and Public Ownership in Autumn Budget
English Mayors to Gain Powers to Impose Uncapped Overnight Tourist Taxes
JPMorgan’s Jamie Dimon Warns UK Government Against Bank Windfall Taxes
UK Air Traffic Control Outage Cancels More Than 2,000 Flights
UK Imposes Trade Ban on Israeli Settlements in the West Bank
UK Borrowing Costs Surge as Middle East Tensions Push Long-Term Gilt Yields to Highest Since 1998
Buckingham Palace Says Prince Harry and Meghan Will Not Resume Official Royal Duties
UK Treasury Faces Calls to Scrap £100,000 Childcare Support Threshold
Trades Union Congress Urges Labour Government to Rewrite Migration Policy
Riot Police Deployed After Anti-Migrant Protests Turn Violent in Portsmouth
UK Considers Replacing Some Disability Cash Payments With Direct Services
JPMorgan’s Jamie Dimon Warns UK Chancellor Against Higher Banking Taxes
UK Announces New Sanctions Targeting Israeli Settlements in West Bank
Metropolitan Police Investigate Alleged Illegal Donations to Reform UK
UK Charges Wiltshire Man With Assisting Russian Intelligence
UK Orders Urgent Review After Air Traffic Failure Cancels More Than 2,000 Flights
Merz Rebukes AfD Expansion in Saxony-Anhalt
King Charles Confirms Prince Harry and Meghan Will Remain Private Citizens
Labour Selects Former Child Refugee for By-Election in Keir Starmer’s Former Seat
Foreign Private Equity Accelerates Takeovers of London-Listed Industrial Companies
NHS Maternity Care Faces Scrutiny Over Support for Mothers After Caesarean Births
BBC Warns Staff Strikes Are Likely Amid Job Cuts and Programme Cancellations
English Housing Affordability Improves to Best Level in More Than a Decade
UK Health Commission Proposes Framework for Wider AI Adoption Across NHS
Labour Faces Pressure for Wealth Tax Ahead of Autumn Budget
Metropolitan Police Open Criminal Investigation Into Alleged Foreign Donations to Reform UK
UK Police Deploy Riot Officers After Anti-Immigration Unrest in Portsmouth and Dover
UK Defends Sanctions on Israeli Settlements Despite Diplomatic Retaliation
UK Air Traffic Control Failure Cancels More Than 1,000 Flights and Disrupts 65,000 Passengers
Compass Urges £10 Million Wealth Tax and Public Ownership Ahead of UK Autumn Budget
UK Government’s Devolution Plans Face House of Lords Scrutiny
Maldives Seeks New Chagos Sovereignty Talks With UK Prime Minister Andy Burnham
×