UK plans to slash heat pump subsidies in budget, alarming installers
Government expected to cut Boiler Upgrade Scheme grants as it looks for spending cuts, threatening installers and a nascent green heating industry.
What to know
- The UK government is expected to cut or slash funding for the Boiler Upgrade Scheme, which currently provides grants up to £9,000 for heat pump installations.
- Heat pump installers say subsidies are essential—75% of customers at one major installer depend on grants—and cuts will cause business collapse and demand collapse based on precedent from the 2022 Renewable Heat Incentive closure.
- The industry warns subsidy cuts will damage apprenticeships, threaten manufacturers, and undermine the UK's climate decarbonisation goals even as building heat accounts for nearly a fifth of UK emissions.
- The UK lags far behind European peers: Norway has 632 heat pumps per 1,000 households; the UK has 3.5, partly due to high upfront costs that subsidies currently bridge.
“Now, the conversation is completely different. I'm getting approached by them saying: 'Mrs Jones, my customer for 15 years, she's enquiring about a heat pump. What can you tell me?'”
Bill Tuck, Operations director, Sustain Homes · The Guardian ↗
Bill Tuck Operations director, Sustain HomesJim Lacey Founder, JLN Plumbing & HeatingAdam Killa Founder, Ask RenewablesUK Government Policy maker
How it unfolded 2 developments, newest first · click a bar or a number to jump articlesposts
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Industry warns of apprenticeship and manufacturer risks
Installers warn that subsidy cuts will threaten apprenticeships and the future workforce, while a nascent industry of heat pump manufacturers may go under without sustained demand.
“Unless we start bringing the young generation through, we're going to have a huge lack of installers, repair engineers, and more importantly, heat pumps as well.”
— Bill Tuck -
background
Installers cite precedent from 2022 subsidy closure — Adam Killa describes the collapse in demand that followed the Renewable Heat Incentive closure in 2022, when customers rejected heat pumps costing £15,000 in favour of boilers at £3,000 despite acknowledging the benefits of heat pumps.
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Heat pump installers warn of business collapse — Installers express alarm at planned subsidy cuts. Bill Tuck, operations director at Sustain Homes, says about 75% of his customers use the subsidies and losing them would be 'extremely damaging.' Jim Lacey warns subsidies are essential to make heat pumps affordable to consumers.
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Government expected to cut heat pump subsidies
The Guardian reports the UK government is understood to be slashing the amount of money available to subsidise heat pumps as it looks for ways to cut spending in Wednesday's budget.
“The government is understood to be slashing the amount of money available to subsidise heat pumps as it looks for ways to cut spending in Wednesday's budget.”
— The Guardian -
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Renewable Heat Incentive closes — The Renewable Heat Incentive scheme, which paid households for generating clean heat, is shut down. According to Ask Renewables founder Adam Killa, his installs immediately dropped from six to eight per week to zero.
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Boiler Upgrade Scheme introduced — UK government launches the Boiler Upgrade Scheme to help homeowners and businesses decarbonise by replacing fossil fuel heating systems with low-carbon alternatives like heat pumps, offering grants up to £9,000.
Also covered reported alongside — the timeline has no entry for these yet
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3 outlets ‘No one saves the planet if it hits their pocket’: UK heat pump installers fear planned subsidy cuts
first by The Guardian, 12d ago · also Guardian Environment, Guardian