Funding cuts threaten heat pump confidence

UK: Heat Pump Association chief executive Charlotte Lee has reacted to news reports that the government is considering cutting funding to the Warm Homes Plan and the Boiler Upgrade Scheme.

Chancellor Rachel Reeves is reported to be planning to remove energy efficiency levies from bills and funding it through changes to the existing Warm Homes Plan.

The HPA reacted to the rumours by insisting that full funding and swift publication of the Warm Homes Plan was critical to restore stability and confidence across the heat pump sector, secure jobs, investment, and ensure households and businesses continue to benefit from low carbon heating.

“The heat pump industry has invested heavily in workforce skills and UK manufacturing to drive the transition to low-carbon heating,” explained Charlotte Lee. “Over 23,500 people have trained to install heat pumps in the past three years, with full-time roles in the installation and maintenance of heat pumps expected to rise to 122,000 by 2035. 

“In 2024, over a third of the heat pumps sold in the UK were made in the UK – a 40% rise on 2023 levels. The skilled jobs required will span every region, ensuring the economic benefits are felt nationwide,” she added.

Lee insisted that this opportunity, and subsequent investment, was now at risk. “Industry confidence is being undermined by the stop/start nature of the market, which cannot be paused and resumed without damaging long term investment and the ability to deliver,” she said.