UK heat pump sales slow after grant cut, CCC warns on climate targets

Heat pump installations rose by 56% in 2024, but the Climate Change Committee warned on 24 June 2026 that the UK still is not electrifying home heating fast enough to stay on track for climate targets. The Boiler Upgrade Scheme offers up to £7,500 upfront, but most of the cost of swapping fossil fuel heating for a heat pump still falls to the homeowner.

The support available through the Boiler Upgrade Scheme in England and Wales can also be used for biomass boilers, and it applies to homes and some non-domestic buildings. The Department for Energy Security and Net Zero lifted the grant from £5,000 to £7,500 in response to weak uptake. January 2024 applications were nearly 40% higher than in January 2023 after the increase.

The National Audit Office found low uptake has been held back by high costs, policy uncertainty and limited consumer awareness. The Climate Change Committee estimates an additional £162 billion will be needed between 2020 and 2050 to install low-carbon heating in existing UK households. The compound annual average growth rate in heat pump installations since 2021 has been 37%.

The Climate Change Committee said households are paying more because the UK is not electrifying quickly enough, and that faster electrification would cut bills.

In its 2026 response, the government remained committed to continued support for sustained year-on-year growth in the heat pump market through the Clean Heat Market Mechanism and its Warm Homes Plan.