Latest news with #BoilerUpgradeScheme
Yahoo
03-06-2025
- Business
- Yahoo
Miliband poised to scrap 600,000-a-year heat pump target
Ed Miliband is poised to ditch targets for heat pumps amid budget cuts that threaten his net zero ambitions, industry sources have told The Telegraph. The previous government declared that from 2028, 600,000 heat pumps would be installed every year in British homes as part of the drive towards net zero. But official communications regarding the deadline have been dropped since Labour took power last year, and any mention of installation targets was absent from the party's 2024 manifesto. Labour has refused to recommit to the 2028 deadline, which was set by Boris Johnson's government in 2021. The Chancellor, Rachel Reeves, is expected to announce the changes in her spending review on June 11. It comes after The Telegraph revealed last week that cuts to the Department for Energy and Net Zero (Desnz) budget could force Mr Miliband to reduce funding for his flagship Boiler Upgrade Scheme, which provides up to £7,500 to homeowners looking to install a ground or air source heat pump. Funding for the scheme is expected to expire in 2028, and the Government is yet to confirm whether it will be renewed. 'The conversations I have been involved in suggest they're planning to get rid of the 2028 deadline, and it's not in any of their PR,' one source told The Telegraph. 'Because the budget is limited and this government isn't the best with finances, the Warm Homes Plan will also get shrunk.' The energy department, led by Mr Miliband, is said to be bracing for budget cuts as Ms Reeves frantically tries to fill an estimated £30bn black hole in Britain's finances. The overall annual growth in day-to-day spending has fallen to 1.2pc in real terms, meaning unprotected government departments are facing cuts. Reductions to his department's budget could force Mr Miliband to reduce funding for heat pump installations, while officials are also said to be looking for savings in Labour's 'warm homes' policies, which provide funding for home insulation. Another industry source said: 'I've not heard talk of the target for months. Setting an ambition is great, but setting absolute target numbers is always a problem. 'The aspiration was based on a number of policy initiatives, all of which have been delayed.' This is likely to deepen a rift in the Cabinet between Mr Miliband and Ms Reeves, who in January urged Labour MPs not to tolerate 'blockers who put their own interests above those of the country'. Ministers are said to be prioritising Labour's pledge of building 1.5 million homes, rather than installation targets for heat pumps. The high price of the green technology has put homeowners off making the switch from gas, critics claim. Mike Foster, of the Energy and Utilities Alliance, said: 'The 600,000 heat pumps installed a year by 2028 was a Boris Johnson target, drafted on the back of a fag packet, which industry always thought was unrealistic. 'Scrapping that figure is plain common sense. What matters in the fight against climate change is how much carbon there is in the atmosphere, not how many heat pumps are in people's homes. 'Out of touch targets help no one and consumers don't want to be press ganged into fitting something they feel forced to do. If a product improves their lives, they will buy it. If not, they won't. Whitehall targets rarely help and more often highlight a failure to deliver by the Government, so why do it?' The rate of installations would need to ramp up ninefold within the next three years to meet the targets set out by the previous government. There were just 65,600 heat pumps installed in the year to April, according to MCS Certified, the trade standards body. Sources claim numbers are lagging because of delays to the Government's Future Homes Standard, which would have made heat pumps compulsory in new-build homes. However, ministers are still poring over consultation documents, and green campaigners are concerned that housebuilder lobbying will mean requirements for green technology, such as battery storage and solar panels, will be dropped. Despite this, DESNZ is pressing ahead with other initiatives such as a controversial 'boiler tax' on manufacturers, which will see manufacturers fined for failing to sell enough heat pumps. Last week, the Government also scrapped the so-called 'one metre rule' which restricted how closely heat pumps could be positioned to a neighbouring property. The push towards net zero has been the cause of much infighting within Labour in recent months, particularly after Sir Tony Blair warned Sir Keir Starmer that Labour's green policies were 'doomed to fail'. Mr Miliband retaliated by accusing Sir Tony of having a 'defeatist' attitude. Sources told The Telegraph the looming spending review has raised tensions even further within Mr Miliband's department, as funding is expected to go towards nuclear power rather than heat pumps. At least three more cabinet ministers are understood to be locked in negotiations with the Treasury about spending levels with just a week to go before decisions are announced. The others are Yvette Cooper, the Home Secretary, Angela Rayner, the Housing Secretary, and Bridget Phillipson, the Education Secretary. A government spokesman said: 'The energy shocks of recent years have shown the urgent need to upgrade British homes. 'Through our Warm Homes Plan, up to 300,000 households will benefit from upgrades this year, such as insulation, double glazing, solar and heat pumps – making them cheaper and cleaner to run. 'We have almost doubled the budget for the Boiler Upgrade Scheme to £295m, and it recently enjoyed its best month since opening, with 4,028 applications in March 2025, up 88pc on the same month last year.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
03-06-2025
- Business
- Telegraph
Miliband poised to scrap 600,000-a-year heat pump target
Ed Miliband is poised to ditch targets for heat pumps amid budget cuts that threaten his net zero ambitions, industry sources have told The Telegraph. The previous government declared that from 2028, 600,000 heat pumps would be installed every year in British homes as part of the drive towards net zero. But official communications regarding the deadline have been dropped since Labour took power last year, and any mention of installation targets was absent from the party's 2024 manifesto. Labour has refused to recommit to the 2028 deadline, which was set by Boris Johnson's government in 2021. The Chancellor, Rachel Reeves, is expected to announce the changes in her spending review on June 11. It comes after The Telegraph revealed last week that cuts to the Department for Energy and Net Zero (Desnz) budget could force Mr Miliband to reduce funding for his flagship Boiler Upgrade Scheme, which provides up to £7,500 to homeowners looking to install a ground or air source heat pump. Funding for the scheme is expected to expire in 2028, and the Government is yet to confirm whether it will be renewed. 'The conversations I have been involved in suggest they're planning to get rid of the 2028 deadline, and it's not in any of their PR,' one source told The Telegraph. 'Because the budget is limited and this government isn't the best with finances, the Warm Homes Plan will also get shrunk.'
Yahoo
29-05-2025
- Business
- Yahoo
What are heat pumps and how much do they cost?
A planning restriction that prevented heat pumps being installed within a metre of a neighbour's property has been removed. The government hopes the move will encourage more people to install the low-carbon technology. However, installation rates will need to increase substantially if the government wants to meet its target of 600,000 heat pumps being fitted each year by 2028. Planning change to make installing heat pump easier for millions Heat pumps run on electricity instead of gas. They warm buildings by absorbing and amplifying heat from the air, ground, or water. They are widely seen as the best way of cutting emissions of carbon dioxide - a planet-warming gas - from home heating, which accounts for 14% of the UK's carbon emissions. Heat pumps are more efficient than gas boilers and can use electricity generated from increasingly clean sources, as wind and solar power replace polluting fossil fuels. Air-source pumps - the most common type - suck in outdoor air and pass it over tubes containing refrigerant fluids which concentrate and boost the warmth to produce heat. The system consists of a box measuring about 1m x 1m x 0.4m which stands outside the property, as well as a heat pump unit and hot water cylinder inside the property. The indoor unit is about the size of a gas boiler, while the cylinder depends on the size of the home. Ground-source heat pumps are more efficient than air-source models. However, they are typically more expensive and less commonly used, as they require either a deep bore hole or a horizontal system dug into the ground over a large area. An air-source heat pump typically costs about £10,000 more than a gas boiler, according to the National Infrastructure Commission (NIC). Installation costs can vary greatly depending on the changes needed to fit the pump into a property. To encourage people to make the switch, the Boiler Upgrade Scheme provides a grant of £7,500 to help with the extra costs in England and Wales. However, the UK's spending watchdog warned in 2024 that costs remain too high for many. The grant can be used for existing homes and non-domestic buildings in England and Wales. The property must have an eligible Energy Performance Certificate (EPC), issued in the last 10 years. Changes to the rules mean homes are no longer required to have existing loft or cavity wall insulation, which could save around £2,500 in upfront costs. A well-insulated home can help a heat pump perform more efficiently. The scheme is not available if you live in social housing or a new-build property. Tenants in private rented accommodation are also eligible but the landlord has to apply. Scotland, external and Northern Ireland, external have separate schemes to help make homes more efficient. Check if you are eligible for the Boiler Upgrade Scheme Ofgem: Upgrading your boiler Find a certified installer While the upfront costs are currently substantial, heat pumps could become cheaper to run than gas boilers, according to the Climate Change Committee (CCC), which advises the UK government on cutting emissions. The cost depends on individual energy prices and how efficiently the heat pump works. Electric heat pumps use much less energy than gas boilers, but electricity typically costs more than gas. Energy deals designed for heat pump owners can also help households make savings. The CCC has called on the government to prioritise making electricity cheaper for everyone, which would make heat pumps more attractive. Previously, homeowners needed planning permission if they wanted to put a heat pump within one metre of their neighbour's property - because of concerns over noise. The rule was dropped in May to accelerate the uptake of heat pumps. Concerns over noise are also less of an issue with newer devices, though units will still be required to be below a certain volume level. The level has been set at 42db which is a similar output to that of a fridge. The planning changes also include a relaxation of the rules for the size and number of heat pumps households can install. Rates of heat pump installation in the UK are lower than in other major European countries, such as France, Germany and Italy. But sales are increasing. Nearly 100,000 heat pumps were sold in 2024, up from about 60,000 in 2023, according to the Heat Pump Association. However, the CCC says this number needs to rise to nearly 450,000 a year by 2030 and 1.5 million by 2035 to help meet climate targets. It says around half of UK homes need to have heat pumps by 2040. Significantly more trained heat pump installers are needed to achieve this. There is no requirement to replace your existing boiler before the end of its life. Households can still buy a new gas boiler if they wish. However, the CCC recommends that all new home heating should be low-carbon after 2035. Most of this will mean using heat pumps, but it acknowledges that other approaches may be more appropriate in some cases - such as direct electric heating in homes with lower heat demand. But the CCC wants the government to rule out the possible use of hydrogen in home heating to provide certainty to customers and industry. A simple guide to climate change Four ways climate change worsens extreme weather What you can do to reduce carbon emissions Sign up for our Future Earth newsletter to keep up with the latest climate and environment stories with the BBC's Justin Rowlatt. Outside the UK? Sign up to our international newsletter here.
Yahoo
13-05-2025
- Automotive
- Yahoo
Workers could pay for heat pumps using salary sacrifice
Homeowners who ditch their gas boilers for a heat pump could pay back the cost of installation through salary sacrifice schemes under plans being considered by Ed Miliband. The proposal would allow salaried employees to repay their loan in monthly instalments that come out of their pre-tax income, saving money overall as they pay less towards national insurance and income tax. It would be similar to salary sacrifice schemes already in place for electric vehicles, which have been credited with boosting uptake among drivers. Mr Miliband, the Energy Secretary, is looking to expand the schemes on offer as a way of helping consumers with the similarly high costs of switching to a heat pump, according to energy companies. According to data provider MCS, the typical cost of installing an air source heat pump – the most common kind – is still about £5,500 after government grants are applied. On Monday, the Government did not rule out making salary sacrifice options available for heat pump purchases but it is understood there are no immediate plans being drawn up. The proposal would likely be more complicated to introduce than the equivalent EV scheme, however, given that heating systems are not typically leased. However, The Electric Car Scheme, which runs salary sacrifice schemes for client companies, said payments on a heat pump costing £14,760, spread over three years, could effectively be reduced from £410 to just £295 using the tax perk. Thom Groot, the chief executive of the company, said: 'We know that the government is seriously considering adding heat pumps to the hugely successful legislation covering salary sacrifice EVs and would welcome their introduction. 'Including these sustainable technologies would provide a meaningful boost to both our net zero goals and the economic growth that Rachel Reeves has made a central pillar of her policy.' Trevor Hutchings, the chief executive of the Renewable Energy Association, added: 'The growing uptake of EVs has been driven in many cases by the hugely successful salary sacrifice provision that makes them cheaper for consumers. 'Extending this to include renewable technologies like heat pumps and solar could provide the industry with a much-needed boost, one that industry estimates could translate into roughly 600,000 Heat Pump and renewable heating installations by 2030.' A government spokesman said: 'We are helping more people install heat pumps, including with our £7,500 grant – and supporting industry to develop financing models that can remove the upfront cost entirely. 'We are consulting on expanding the Boiler Upgrade Scheme to support new approaches, such as heat pump subscriptions, to help more households make the switch to cleaner heating in a way that works for them.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Daily Mirror
08-05-2025
- Business
- Daily Mirror
Labour Party explains how it will cut £300 a year from UK energy bills
The Labour Party repeatedly made the pledge during its General Election campaign last year Labour has shed more light on its ambitious plan to slash energy bills by £300 annually by 2030. The party repeatedly touted this promise during its General Election campaign last year, and Prime Minister Keir Starmer has reaffirmed the commitment since taking office. SNP MP Seamus Logan queried the Government in Parliament about from what level the Government plans to bring down energy bills £300 when the change is achieved. Energy minister Miatta Fahnbulleh responded, saying: "The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently. "The creation of Great British Energy will help us to harness clean energy and have less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030. This, combined with our Warm Homes Plan to upgrade millions of homes to make them warmer and cheaper to run is how we will drive down energy bills and make cold homes a thing of the past." The Warm Homes Plan includes additional funding for the Boiler Upgrade Scheme, which offers grants to support the transition from fossil fuel heating systems to heat pumps or biomass boilers. Through this scheme, households can receive £7,500 towards an air source heat pump, £7,500 towards a ground source heat pump, or £5,000 towards a biomass boiler. Government figures indicate that switching to a heat pump could save families about £100 annually on energy bills in contrast to using a gas boiler, while insulating a home could result in even greater savings of roughly £200 a year. Ms Fahnbulleh further explained the Government's strategy, saying: "We recognise that we need to support households struggling with bills whilst we transition to clean power by 2030. This is why we are delivering the Warm Home Discount to around 3 million eligible low-income households this winter. "On February 25, we published a consultation on the expansion of the Warm Home Discount, giving more eligible households £150 off their energy bills. These proposals would bring around 2.7 million households into the scheme – pushing the total number of households that would receive the discount next winter up to around 6 million. "The consultation has now closed and the Department is evaluating the responses." The Warm Homes Discount offers a one-off £150 deduction from your electricity bill. Those who qualify include people on the Guarantee Credit portion of Pension Credit as well as those on a low income or who are receiving certain means-tested benefits. Ministers are considering broadening the scope of the discount to include everyone on means-tested benefits. Most of the time, eligible suppliers will automatically deduct the discount from your bill — the funds aren't transferred directly to you. These suppliers are part of the scheme: 100Green (formerly Green Energy UK or GEUK) Affect Energy – see Octopus Energy Boost British Gas Bulb Energy – see Octopus Energy Co-op Energy - see Octopus Energy E - also known as E (Gas and Electricity) Ecotricity Next EDF Fuse Energy Good Energy Home Energy London Power Octopus Energy Outfox the Market OVO Rebel Energy Sainsbury's Energy Scottish Gas – see British Gas ScottishPower Shell Energy Retail So Energy Tomato Energy TruEnergy Utilita Utility Warehouse.
