Nesta has released a report outlining a plan for the new Government to boost clean heating, which it claims could save the average family switching to a heat pump £400 a year on their energy bills
One in 10 households, approximately three million homes, need to install heat pumps or other low carbon heating during this parliament to meet climate targets, according to new analysis.
Innovation charity Nesta has released a report outlining a plan for the new Government to boost clean heating, which it claims could save the average family switching to a heat pump £400 a year on their energy bills. Nesta warns that with homes contributing 14% of the UK’s greenhouse gases, meeting targets to cut emissions to end the UK’s contribution to climate change cannot be done without decarbonising heating.
The report found that the UK installed an estimated 250,000 heat pumps between 2020-2024, while 25.5 million homes still use oil or gas boilers. It warns that policy U-turns and delays by the previous government, such as scrapping higher energy efficiency standards for landlords and delaying the phase-out of boilers in off-grid homes, have left the UK around 15% short of the emissions savings from homes needed to meet climate targets.
Nesta states that some three million households need to switch to heat pumps and other low-carbon heating systems such as district heating over the life of this Parliament. This would require a 12-fold increase in installations compared to the last five years, according to the charity.
The report recommends a series of actions the Government should take to get back on track, with priorities for the first 100 days including rebalancing energy bills. This would level the playing field between electric heat pumps and gas boilers by preventing green levies from inflating electricity prices over their lifetime.
Nesta is also pushing for the creation of a national body to oversee government heating and efficiency initiatives, assist local councils with the transition, and to kick-start pilot schemes for community-level low-carbon heating solutions. The idea is that coordinated efforts at the neighbourhood level could include shared heating systems like heat networks or collective purchasing agreements to reduce upfront costs and encourage adoption.
Moreover, Nesta urges the Government to provide clarity by quickly dismissing hydrogen as an option for domestic heating and setting clear timelines for phasing out new boiler installations a hot topic during the election period. According to the charity, if its proposed policies were implemented, households switching to heat pumps could save £400 annually on energy bills.
The report also highlights the need for better measures to tackle fuel poverty and calls for fully funded low-carbon heating solutions in social and fuel-poor homes. Madeleine Gabriel, director of sustainable future at Nesta, commented: “The new UK Government will need to reverse the drift away from energy policies that ensured we would meet the UK’s net zero targets.”
“It has inherited a big problem on home heating and will need to take urgent action. The good news is that it is possible to change course on the current approach and much can be accomplished rapidly, including setting out proposals to rebalance energy bills to reduce the relatively high cost of electricity. This would stop people paying an unnecessary premium for going green.”
Co-author of the report, Marcus Shepheard, chimed: “If we get this right the prize is huge and transformative. It means energy security for the country as a whole, and better, warmer homes that are cheaper to run for millions of people.”
Deputy director of Energy UK, Charles Wood, stressed the importance of a united front under the new Government for speedy progress towards low-carbon heat, acknowledging that Nesta had “rightly highlighted” crucial factors for quick delivery.
A spokesperson for the Department for Energy Security and Net Zero said: “The energy shocks of recent years have shown the urgent need to upgrade British homes and secure our energy independence. Our Warm Homes Plan will support investment in insulation and low carbon heating upgrading millions of homes over this Parliament.”
“By providing £13.2billion of investment to deliver this plan, we will cut bills, reduce fuel poverty and get the UK back on track to meet our climate goals.”
