Questions remain over Warm Homes Plan
21st January 2026
UK: The heat pump industry has welcomed the UK government’s Warm Homes Plan but questions remain over electricity tariffs, long-term policy and the lack of support for commercial buildings.
The publication of the £15bn Warm Homes Plan, which includes an extension of the Boiler Upgrade Scheme by a further year to 2029/30, is designed to help millions of families benefit from solar panels, batteries, heat pumps and insulation.
Charlotte Lee, chief executive of the Heat Pump Association UK, said that it would send a strong signal to both industry and consumers that the shift to clean, electrified heat remained important to the government.
However, Lee expressed disappointment at the “missed opportunity” not to extend the same support for the decarbonisation of commercial and public sector buildings or confirmation of further action to tackle the high price of electricity relative to gas.
Russell Dean, deputy divisional manager at Mitsubishi Electric, agreed that the disproportionate cost of electricity still remained a “roadblock” for the uptake of renewable heating in the UK.
“Not addressing this is the biggest opportunity missed for the residential sector, and the biggest challenge to increasing the uptake of more heat pumps now,” Dean said.
He also complained that support for businesses and commercial buildings remains extremely limited. “The commercial sector continues to be held back by little to no governmental, regulatory, or legislative incentive to decarbonise. The lack of commercial focus signifies a missed opportunity to tackle the UK’s approximately two million non-domestic buildings, and any genuinely transformative action plan must address this.”
Sachin Vihbute, manufacturer LG’s HVAC and heat pumps technical consultant and product training manager, agreed that the £2.7bn commitment to the Boiler Upgrade Scheme could be a “real turning point” for heat pump adoption. He also described the plan to offer interest-free loans for heat pumps as a “welcome step” to further reduce upfront costs,
“But while the plan sets out funding and ambition, it is lighter on the practical measures needed to help heat pump installations scale at pace,” he said. “Financial support is an important part of the picture, but clearer consumer guidance and long-term policy certainty will be essential to give households and installers the confidence to invest.”
He maintains that to fully unlock the potential of the Warm Homes Plan, a continued focus on training, skills and installer capacity would be critical. “Without enough qualified people to deliver these upgrades, progress risks falling short of its potential.”
HPA UK’s Charlotte Lee added: “The sector now eagerly awaits the publication of the Future Homes and Buildings Standard Regulations, which are essential to underpin demand in the market and unlock positive investment decisions in the manufacturing and installation of heat pumps.”
