Heat Pump Growth Stalls as Government Support Cut, Warns Climate Watchdog

ALN NEWS DESK
ALN NEWS DESK
Updated : Jul 2, 2026, 06:08 AM IST
8 min read
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The growth in heat pump installations in the UK has significantly slowed, raising concerns about government climate goals following the cut of a key grant program.

Installations of heat pumps in the UK grew just 7% last year - down from a bumper 56% in 2024 - in a worrying sign for government climate efforts.

The UK's independent climate advisors published the figures on Wednesday as part of its update on the country's progress to reduce planet-warming emissions. This decline in heat pump installations has raised alarms among alists and policymakers alike, as the technology is seen as a crucial component in the UK’s strategy to achieve net-zero emissions by 2050.

The fall in sales comes after the government withdrew a controversial grant scheme to help poorer households install the technology - which can help tackle emissions by heating homes using electricity instead of gas. The decision to cut this support has been met with criticism from various stakeholders, including climate activists and industry representatives, who argue that it undermines the UK's climate goals.

Overall, carbon emissions continued to fall, the advisors said, putting the UK in a "leading group of countries" - but slow progress in home heating risks future targets being missed. The reduction in emissions is a positive sign, but experts warn that without a significant increase in the adoption of heat pumps, the UK may struggle to meet its ambitious climate targets.

Impact of Heat Pumps on Emissions

Almost a fifth of the country's emissions come from the way that we heat our homes. The vast majority of households currently use gas boilers, but the government's ambition is to move most properties over to heat pumps. These run on electricity rather than gas, which can be generated from green energy sources like solar and wind. Transitioning to heat pumps is seen as essential for reducing emissions from residential heating, which is a significant contributor to the UK's overall carbon footprint.

However, for most, heat pumps are prohibitively expensive to install. The government does have the Boiler Upgrade Scheme which offers a £7,500 grant upfront towards the cost of the technology, but that can still leave households more than £2,500 to pay. This financial barrier has been a significant hurdle in increasing the uptake of heat pumps, particularly among low- to middle-income households that may already be struggling with rising living costs.

The government removed the ECO scheme, which provided heat pumps fully funded to lower-income homes in Great Britain, after reports of botched installations. Issues such as these have led to skepticism about the effectiveness of government programs aimed at promoting green technologies.

  • 30,000 homes fitted with botched insulation

The Committee and the industry have said a new grant system needs to be provided, but also efforts need to be made to bring down running costs. The financial viability of heat pumps is critical, as many potential users are deterred by the high initial costs and ongoing expenses associated with their operation.

"This transition in our homes is no different to the ones we've had before. Fresh running water in homes, indoor sanitation, central heating, heat pumps. It's just another transition. We have to find a way to make it affordable. And that's the government job," said Bean Beanland, former director of the Heat Pump Association.

The UK has some of the highest electricity bills in Europe because of upgrades to the network, charges on energy bills, and spikes in gas prices which can affect the price of all electricity. These high costs further complicate the transition to heat pumps, as households may be reluctant to switch from a gas boiler to a technology that could potentially increase their energy bills.

  • Electricity bills targeted in planned shakeup to energy pricing

A Department for Energy Security and Net Zero spokesperson acknowledged the ECO scheme "faced serious challenges". However, they added: "We are taking action on energy bills, as well as going further and faster in our clean energy mission, to end our dependency on fossil fuels, give us energy security and get bills down for good." This statement suggests that the government is aware of the challenges and is working on solutions, but critics argue that more immediate action is needed to support households in making the transition.

Comparative Growth in Electric Vehicles

In contrast to heat pumps, continuing record sales of electric cars indicate they are all but set to replace their petrol and diesel counterparts in the coming years on UK roads. Emma Pinchbeck, CEO of the Climate Change Committee, praised the improvement in greener transport. The growth in electric vehicle (EV) adoption is seen as a significant step towards reducing emissions in the transport sector, which is another major contributor to the UK's overall carbon footprint.

"We've made big progress on things like electric vehicles, where one in four cars being bought in the UK today is now an EV," she said. This statistic highlights the increasing acceptance and demand for electric vehicles among consumers, driven in part by government incentives and a growing awareness of climate issues.

She noted that the growth had been accelerated by the Iran fuel crisis, which has seen significant increases in petrol and diesel prices at the pump, pushing people to seek out other options. The rising cost of fossil fuels has made electric vehicles a more attractive option for many consumers, further driving sales.

However, the industry body, Society of Motor Manufacturers (SMMT), stated that most of this demand had been brought about by huge discounts offered by car manufacturers. This raises concerns about the sustainability of the current growth trend, as the industry may not be able to maintain such discounts without impacting profitability.

"This has cost the industry more than £10 billion since 2024 – an unsustainable amount when that money should be going into R&D, manufacturing and the workforce," said Mike Hawes, CEO of SMMT. This financial strain on the automotive industry underscores the challenges manufacturers face in transitioning to electric vehicles while also remaining financially viable.

It supported the government's plan to weaken its Zero Emission Vehicles (ZEV) mandate, which sets a target for the number of EVs that manufacturers sell in the UK and potential penalties for failing to meet that target. The UKCCC disagreed and urged the government to keep the policy, emphasizing the importance of maintaining ambitious targets to drive innovation and investment in the sector.

Challenges Ahead

Nicholas Theobald, who lives in London, made the switch to a second-hand EV earlier this year over concerns about petrol prices. "It seemed like the right thing to do; we just [had] this whole feeling of being dependent upon fossil fuel countries," he said. His experience reflects a broader trend of consumers seeking alternatives to fossil fuels, but he also highlighted the challenges associated with this transition.

However, he added that not having access to his own charger at home and having to rely on public chargers was making it more expensive - up to ten times more than if he charged at home. This issue is emblematic of the broader challenges facing the electric vehicle market, particularly in urban areas where charging infrastructure may be inadequate.

This was one of numerous other issues highlighted by the Committee that the government was too slow in addressing. It said minimal progress in sectors like farming and aviation risked the country missing future targets. The need for a comprehensive approach to emissions reduction across all sectors is critical, as piecemeal efforts may not be sufficient to achieve the necessary reductions.

The advisors reminded the government of the importance of cutting emissions to reduce the country's contribution to climate change. Parts of the UK are under a red alert for extreme heat this week, as temperatures are set to climb to close to 40C. The Met Office has said such extreme temperatures are made more likely and more frequent by climate change, highlighting the urgent need for action to mitigate its impacts.

As the UK grapples with these challenges, the future of its climate policy remains uncertain. The balance between promoting green technologies like heat pumps and electric vehicles while ensuring affordability and accessibility for all households will be crucial in determining the success of the country's climate ambitions.

In conclusion, the recent slowdown in heat pump installations serves as a wake-up call for policymakers and industry leaders. Immediate action is needed to reinstate support mechanisms that encourage the adoption of renewable technologies, while also addressing the financial barriers that prevent widespread adoption. Only through a collaborative effort can the UK hope to meet its climate targets and ensure a sustainable future for generations to come.

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