Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 22
22
Accepted
Review clean heat market measures for effectiveness in increasing heat pump uptake.
Recommendation
The Government should review and assess measures designed to shape and influence the clean heat market, including but not limited to the Clean Heat Market Mechanism, to determine if they remain the most effective ways to increase heat pump uptake. (Recommendation, Paragraph 121) Workforce and skills
Government Response Summary
The government states it closely monitors the clean heat market and the impact of its measures through regular monitoring, third-party evaluations, and consultations, detailing existing schemes and increased funding in the Warm Homes Plan.
Government Response
Accepted
HM Government
Accepted
The government closely monitors the development of the market for clean heating appliances like heat pumps, and the impact of measures to support this. Certified heat pump installations were 43% higher in 2024 than 2023, and deployment growth has continued year-on-year in the first part of 2025. The government is working with industry to develop a thriving market and supply chain for clean heating technologies includes action to develop consumer demand, support installer training, and invest in UK manufacturing. Through investment in schemes like the Boiler Upgrade Scheme, the government is supporting more households to install heat pumps, while the Heat Pump Investment Accelerator Competition is boosting UK heat pump manufacturing. The Clean Heat Market Mechanism is also an important part of this work, providing manufacturers the confidence to invest in the transition; we recently consulted on heat pump targets for Year 2 of the scheme and will respond in the Autumn after assessing responses. Regular monitoring of each scheme is complemented by a programme of third-party impact evaluation to inform future decisions. In addition, thorough public and stakeholder consultation helps to inform decisions on schemes’ design and direction at each phase – for instance, a recently concluded consultation on proposed adjustments to the Boiler Upgrade Scheme. In June this year, the Chancellor announced £13.2 billion for the Warm Homes Plan, and Government confirmed funding to the Boiler Upgrade Scheme will increase each year to 2029/30. The publication of the Warm Homes Plan will set out the full range of steps that the Government will take to decarbonise homes and develop the market for clean heating, informed by the latest evidence on market trends, barriers and enablers for accelerating the transition, and the impact and lessons from policy measures to date.