UK heat pump installers fear planned subsidy cuts

The UK government is understood to be reducing the money available for heat pump subsidies as it prepares Wednesday's budget, according to the source. Companies that fit these renewable heating systems say they fear the worst.

The subsidy, known as the Boiler Upgrade Scheme (BUS), was introduced in 2022. It offers upfront grants of up to £9,000 so that property owners can replace fossil fuel and direct electric heating with low-carbon options such as heat pumps and biomass boilers.

Concerns from businesses

Bill Tuck, operations director at Sustain Homes in Watford, says about 75% of his customers pay for their heat pump with the subsidy. He described it as the foundation of the business and said losing it would be extremely damaging. He added that interest has grown sharply, with other heating engineers now asking about heat pumps on behalf of their own customers.

Jim Lacey, who has installed renewables for 20 years with JLN Plumbing & Heating, argues that without the grant the central sales argument disappears: a heat pump costs only a few hundred pounds more than a normal boiler but saves substantially on energy use. Adam Killa, founder of Ask Renewables in Burscough, Lancashire, recalls that after the Renewable Heat Incentive scheme closed in 2022, his installations fell from six to eight a week to zero.

Future of the industry

Installers warn that cuts would also threaten apprentices and manufacturers. According to the Heat Pump Association, about a third of heat pumps sold in the UK in 2024 were made domestically.

Heating in buildings accounts for roughly a fifth of UK greenhouse gas emissions. Norway has 632 heat pumps per 1,000 households, compared with 3.5 in the UK.

A government spokesperson declined to comment on budget speculation, saying the government remains committed to lowering bills and investing in clean, homegrown energy and warmer homes.