Tag: heat pumps

Government announces fresh range of changes to bring down energy costs

Energy Secretary Ed Miliband has set out a package of measures designed to reduce the country’s dependence on volatile costs of fossil fuels.

Recent polling carried out for the End Fuel Poverty Coalition found that 77% of the public agreed that ‘history just keeps repeating itself with energy prices’ and 72% felt that ‘our reliance on oil and gas makes us vulnerable to global price shocks.’ [1]

Ministers have backed the public’s view, arguing that two fossil fuel shocks in less than five years demonstrate that “the era of fossil fuel security is over, and the era of clean energy security must come of age.”

As part of the package of measures, the Government has increased support for households using heating oil and LPG to move to heat pumps by raising the boiler upgrade scheme grants to a total of £9,000. Moves will also be taken to make installing heat pumps easier in flats.

An additional £100 million in funding will help deliver energy upgrades to 100,000 social homes through the Warm Homes Plan, on top of the £1.2 billion pledged earlier this year.

A £25 million pilot scheme, delivered via local authorities and mayors, will install plug-in solar panels for low-income households.

Measures taken by the Chancellor include a new carrot and stick approach to reforming the cost of some electricity generation where energy firms are incentivised to lower prices by moving to new contracts or face higher windfall taxes.

Other announcements include:

  • A cross-government drive to build renewables on public estate land and expand solar-installation support for schools and colleges.
  • Legislation and consultation to expand EV charging provision, including cross-pavement charging, new and renovated buildings and easier access for renters and leaseholders.
  • A wide-ranging overhaul of planning, land access and grid connection rules to speed up clean energy infrastructure.

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented

“Every spike in global gas markets feeds directly into household energy costs, and people in fuel poverty often pay the heaviest price.

“Research shows that the public understands this and wants to take action, but needs support to invest in energy efficiency measures.

“Any speeding up of the Warm Homes Plan will deliver more support to households quicker than planned. However, delivery through this Plan must include locally provided, specialist advice to ensure households choose the right options and a Warm Homes Guarantee so that consumers are sure to see the benefits of new technology.

“With bills forecast to rise from July, moves to get energy efficiency measures into homes and plans to delink the cost of gas from electricity bills can’t come soon enough. But until these reforms take effect, it’s clear that households will also need support with their energy costs.

“The households most exposed to that increase need support now, not just long-term structural change. That means help for those on low incomes, in poorly insulated homes, or relying on heating oil and LPG outside the price cap.”

Gavin Smart, chief executive, Chartered Institute of Housing, said:

“As another international crisis starts to push energy bills even higher, it is right that the government looks to accelerate the Warm Homes Plan.

“Every piece of loft insulation or solar panel that we install helps to keep homes warmer and cheaper to power, while reducing our reliance on volatile fossil fuel markets. CIH and our members will continue to support the government with this work in these crucial months before next winter.”

Jonathan Bean from Fuel Poverty Action, added:

“Any progress is welcome, but we are still a million miles from fair and affordable energy for all.  Without bigger changes, millions of people will still face cold homes and unaffordable electricity prices.

“Our energy system will still be dominated by huge profits and high prices.  Half-baked plans for air-to-air heat pumps and plug-in solar will still fail most people living in flats.

“Those most in need will still not get their fair share of the cheap clean energy we are generating.  Government must make green fair, and deliver on its election promise to reduce bills by £300.”

National Energy Action responded on LinkedIn, commenting:

“Measures that deliver genuinely cheaper and more stable electricity prices for households, with a particular focus on those on low incomes or experiencing energy debt, are positive for those in fuel poverty. Any market intervention should be assessed against a clear test: whether it reduces energy bills in practice and improves affordability, enabling fuel poor households to heat their homes to a safe and adequate standard.

“More funding for heating oil and LPG customers in the Boiler Upgrade Scheme offers an opportunity to reduce their reliance on volatile fossil fuel markets. Many LPG households experience deep vulnerability, often combining low incomes with high levels of disability or long‑term illness. To be effective and equitable, the scheme must proactively reach and support low‑income, fuel poor households, particularly those who are least likely to seek support independently. Failure to do so risks excluding those who stand to benefit most.

“Additional funding for the Social Housing Fund has the potential to progress the government’s fuel poverty targets. Around 13% of social renters live in fuel poverty, and increased investment can deliver warmer, healthier homes for some of the most financially vulnerable households

“Increased support for low‑income households to access plug‑in solar will benefit fuel poor households, as a significant proportion live in flats, where rooftop solar is harder to obtain. Plug‑in solar can enable these households to benefit from self‑generation and reduced reliance on the grid. This support should be accompanied by clear advice on optimal tariffs and integrated with energy efficiency measures, such as insulation, to maximise bill reductions and long‑term affordability.”

ENDS

[1] Survation were commissioned by the End Fuel Poverty Coalition to interview 2,047 people from 2-7 April 2026. Data were weighted to the profile of the UK. Data was weighted by respondent’s sex, age, region, household income, highest qualification, and past vote (GE24, EU16). Research tables are available here.

Scrapping home upgrade funding could leave households at greater risk

The leadership of Reform staged a petrol station stunt promising cheaper fuel and energy bills by attacking what they call “green levies” which are used to long-term heating and energy efficiency programmes.

As global gas prices surge following the conflict with Iran, the stunt highlights how Britain’s continued dependence on oil and gas leaves households exposed to global price shocks.

A spokesperson for the End Fuel Poverty Coalition, which campaigns to lower home energy costs, said:

“Scrapping support for heat pumps and energy efficiency programmes would lock the country into a continued cycle of high energy prices and fuel poverty.

“The reason households are facing rising costs today is because the country remains heavily dependent on oil and gas whose prices are set on volatile global markets.

“As the conflict in the Middle East shows, when tensions rise anywhere in the world the price of gas quickly follows. That is what pushes up energy bills, not investment in cleaner heating.

“The real way to cut bills for working people is to reduce the amount of gas we burn through better insulated homes, expand homegrown renewable power and reform energy pricing so households are no longer exposed to constant gas price shocks.

Robert Palmer, deputy director of campaign group Uplift, added:

“It’s clear that the only route to lower bills and secure energy is to free ourselves from oil and gas through homegrown renewable energy and upgrading homes, whether that’s with solar panels or heat pumps. This is just common sense in today’s world

“New North Sea drilling will make no difference to UK energy bills and have no meaningful impact on the UK’s supply of gas.”

Heat pump sales hit record high but major barriers still remain

Data from the Heat Pump Association has revealed there were a total of 125,037 units of air, ground, water and other heat pumps sold last year, a 27% increase on 2024.

More than a third of the heat pumps (36%) were manufactured in the UK, an increase on the number for 2024, the figures show. But the industry warned the growth rate in the sector has slowed compared to last year.

A spokesperson for the End Fuel Poverty Coalition, commented:

“High levels of heat pump sales are a welcome sign that cleaner heating is starting to scale up and the fact more than a third are now manufactured in the UK shows the potential for jobs and investment alongside lower emissions.

“But the reality is that 125,000 sales a year is still a long way from what we need to see. With gas prices continuing to show volatility and the UK unable to meet domestic heating needs from the depleting North Sea gas reserves from next year, moving onto heat pumps will be the way forward for many households.

“But moving onto a heat pump should come with a Warm Homes Guarantee, with independent advice, strong consumer protections and a clear promise that homes will be more comfortable after work is done.

“Ministers must also tackle one of the biggest barriers holding back heat pump take-up: the high cost of electricity. Without reform of electricity pricing and targeted support for those in fuel poverty, clean heating will remain out of reach for too many households.”

Ministers urged to clarify energy efficiency support funds

More people will get money off technology that keeps their homes warm in winter and cool in summer after the Government has announced plans to expand the Boiler Upgrade Scheme.

This currently offers grants of £7,500 off the cost of installing an air source or ground source heat pump, now the scheme has been expanded to offer a £2,500 discount off the cost of installing an air-to-air heat pump, which can provide heat in winter and air conditioning in summer.

The grants are available to all households and form part of the government’s £13.2 billion Warm Homes Plan, rather than being funded in addition to this budget as previously expected.

A spokesperson for the End Fuel Poverty Coalition, commented:
“The Government doesn’t seem to know if it is coming or going.

“One week they are briefing the media that energy efficiency budgets may be slashed in the Budget. The next they are talking up heat pumps and calling for households to apply for support.

“Households struggling with the fifth winter of high energy bills need to know what help will be available to them to keep their homes warm in winter and cool in summer.

“The Government’s Warm Homes Plan and fuel poverty strategies need to be published without any further delay so households know where they stand and industry can ensure enough skilled workers are trained.”

Government must fund missing billions from energy efficiency programmes

The Government’s new Heat and Buildings Strategy has had a mixed reaction, with many anti-poverty and climate change campaigners pointing to significant shortcomings in the final announcement.

The headline announcement in the strategy is a grant to help cover costs of heat pumps up to £5,000. The current cost of a heat pump is between £6,000 and £18,000.

A spokesperson for the End Fuel Poverty Coalition, commented:

For millions of households who desperately want and need to improve their energy efficiency by switching to heat pumps, the promised government money won’t be enough. While costs for heat pumps will come down in time, the level of grant available at present is nowhere near enough for households already in fuel poverty.

Coming on the back of the damning Committee for Fuel Poverty report, which suggested that government investment is not targeted at those who need it most, it would appear that the Government has yet to learn lessons from the past.

The government also needs to confirm what has happened to the missing billions, which is the gap between the investment announced today and the levels of investment promised in the Conservative Party Manifesto at the last election.

We hope the Comprehensive Spending Review will offer more support for families in fuel poverty and plug the gap between funding that has been promised and that which has been delivered.

Business and campaigners unite in call for fair heat deal

Over twenty businesses, energy suppliers, green and anti-poverty groups (including the End Fuel Poverty Coalition) have called for the Government to back a Fair Heat Deal to make the transition away from fossil fuel boilers attractive, easy, and fair for all.

The groups want the Government to ensure it is affordable for every household to install and run a heat pump. This would help households benefit from cheaper energy bills and warmer, healthier homes, while slashing carbon emissions.

Buildings in the UK are responsible for nearly a quarter of climate emissions. Moving away from polluting fossil fuel boilers is necessary to decarbonise Britain’s buildings and to get on track to net-zero.

The UK’s scientific advisors, the Climate Change Committee, say heat pumps will play the largest role in decarbonising Britain’s heat supply. Air source heat pumps work like fridges in reverse, extracting the warmth in the air outside and compressing it to heat the building inside.

The Fair Heat Deal would stimulate the heat pump market, helping to accelerate a reduction in technology and installation costs as economies of scale are achieved. This means the costs of subsidising the programme could rapidly fall over time.

By boosting economic activity, the Fair Heat Deal could generate as much growth as any infrastructure programme but would have the extra benefits of creating good jobs in every part of the UK while slashing energy bills. The UK has a world-leading heat appliance manufacturing industry. This means accelerating the deployment of heat pumps could create a massive inward investment and global export opportunity as other countries look to decarbonise heat.

The groups urged Government to provide comprehensive support for households moving to heat pumps. The Fair Heat Deal would include:

  • Moving environmental levies off electricity bills to ensure it is always cheaper to run a heat pump than a boiler.
  • Free heat pumps and insulation for fuel poor and low-income households.
  • Grants for everyone else to equalise the cost of a new heat pump with a fossil gas boiler.
  • Financial incentives including zero VAT on green home products and installation and green Stamp Duty to reduce the cost of low carbon homes.
  • Strong consumer protections.
  • A Warm Homes Agency to train installers, create quality green jobs in every part of the country and maintain high standards.

Juliet Phillips, Senior Policy Advisor at E3G said:

Moving from a gas boiler to a heat pump is one of the biggest carbon savings a household can make to fight climate change. But it must be affordable and we urge the Government to support our Fair Heat Deal to ensure no one is left behind in the green industrial revolution. If done right the UK can lead the world in reducing carbon emissions from heat while slashing energy bills, boosting the economy and protecting the fuel poor.

Energy Saving Trust CEO Mike Thornton

With the climate emergency upon us, there is no time to waste and we need to take positive action. We have to make our homes more energy efficient and move away from reliance on fossil fuels for heating. Heat pumps are an important low carbon heating technology that will help us meet net zero. A Fair Heat Deal will make heat pumps more attractive to householders and help them to switch over to low carbon heating. For the UK to reach its net zero targets, we need real pace and scale in rolling out heat pumps. A Fair Heat Deal will provide the confidence, clarity and certainty which will unlock the investment required for this.

Signatories to the Fair Heat Deal

CPRE-The Countryside Charity, End Fuel Poverty Coalition, E.ON, E3G, Federation of Master Builders, Energy Saving Trust, Energy UK, Friends of the Earth, Good Energy, Green Alliance, Green Finance Institute, Greenpeace UK, Heat Pump Federation, Kensa Contracting, MCS Foundation, New Economics Foundation, OVO, Possible, The Association for Decentralised Energy, UK Green Buildings Council, WWF.

Image: Flickr