What are heat pumps and how much do they cost?
A planning restriction that prevented heat pumps being installed within a metre of a neighbour's property has been removed.
The government hopes the move will encourage more people to install the low-carbon technology.
However, installation rates will need to increase substantially if the government wants to meet its target of 600,000 heat pumps being fitted each year by 2028.
Planning change to make installing heat pump easier for millions
Heat pumps run on electricity instead of gas. They warm buildings by absorbing and amplifying heat from the air, ground, or water.
They are widely seen as the best way of cutting emissions of carbon dioxide - a planet-warming gas - from home heating, which accounts for 14% of the UK's carbon emissions.
Heat pumps are more efficient than gas boilers and can use electricity generated from increasingly clean sources, as wind and solar power replace polluting fossil fuels.
Air-source pumps - the most common type - suck in outdoor air and pass it over tubes containing refrigerant fluids which concentrate and boost the warmth to produce heat.
The system consists of a box measuring about 1m x 1m x 0.4m which stands outside the property, as well as a heat pump unit and hot water cylinder inside the property.
The indoor unit is about the size of a gas boiler, while the cylinder depends on the size of the home.
Ground-source heat pumps are more efficient than air-source models.
However, they are typically more expensive and less commonly used, as they require either a deep bore hole or a horizontal system dug into the ground over a large area.
An air-source heat pump typically costs about £10,000 more than a gas boiler, according to the National Infrastructure Commission (NIC).
Installation costs can vary greatly depending on the changes needed to fit the pump into a property.
To encourage people to make the switch, the Boiler Upgrade Scheme provides a grant of £7,500 to help with the extra costs in England and Wales.
However, the UK's spending watchdog warned in 2024 that costs remain too high for many.
The grant can be used for existing homes and non-domestic buildings in England and Wales. The property must have an eligible Energy Performance Certificate (EPC), issued in the last 10 years.
Changes to the rules mean homes are no longer required to have existing loft or cavity wall insulation, which could save around £2,500 in upfront costs. A well-insulated home can help a heat pump perform more efficiently.
The scheme is not available if you live in social housing or a new-build property. Tenants in private rented accommodation are also eligible but the landlord has to apply.
Scotland, external and Northern Ireland, external have separate schemes to help make homes more efficient.
Check if you are eligible for the Boiler Upgrade Scheme
Ofgem: Upgrading your boiler
Find a certified installer
While the upfront costs are currently substantial, heat pumps could become cheaper to run than gas boilers, according to the Climate Change Committee (CCC), which advises the UK government on cutting emissions.
The cost depends on individual energy prices and how efficiently the heat pump works.
Electric heat pumps use much less energy than gas boilers, but electricity typically costs more than gas.
Energy deals designed for heat pump owners can also help households make savings.
The CCC has called on the government to prioritise making electricity cheaper for everyone, which would make heat pumps more attractive.
Previously, homeowners needed planning permission if they wanted to put a heat pump within one metre of their neighbour's property - because of concerns over noise.
The rule was dropped in May to accelerate the uptake of heat pumps.
Concerns over noise are also less of an issue with newer devices, though units will still be required to be below a certain volume level.
The level has been set at 42db which is a similar output to that of a fridge.
The planning changes also include a relaxation of the rules for the size and number of heat pumps households can install.
Rates of heat pump installation in the UK are lower than in other major European countries, such as France, Germany and Italy.
But sales are increasing. Nearly 100,000 heat pumps were sold in 2024, up from about 60,000 in 2023, according to the Heat Pump Association.
However, the CCC says this number needs to rise to nearly 450,000 a year by 2030 and 1.5 million by 2035 to help meet climate targets.
It says around half of UK homes need to have heat pumps by 2040.
Significantly more trained heat pump installers are needed to achieve this.
There is no requirement to replace your existing boiler before the end of its life. Households can still buy a new gas boiler if they wish.
However, the CCC recommends that all new home heating should be low-carbon after 2035.
Most of this will mean using heat pumps, but it acknowledges that other approaches may be more appropriate in some cases - such as direct electric heating in homes with lower heat demand.
But the CCC wants the government to rule out the possible use of hydrogen in home heating to provide certainty to customers and industry.
A simple guide to climate change
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'And then you call an end to investment in renewables.' So what can be done to bring power prices down? For environmental groups, the primary blame for high energy prices will always lie with fossil fuels. They argue that the best way to cut bills is to drive down our reliance on gas by continuing to build more renewables, but crucially, alongside battery storage and grid upgrades. One of the most influential climate groups is Ember, a London-based think tank that was called on by Labour and Mr Miliband to draft the party's plans for clean power. In particular, Ember helped to inspire the pledge for clean power by 2030 and provided the workings behind Mr Miliband's ill-conceived pledge to cut £300 from household energy bills. Josie Murdoch, an analyst at Ember, says: 'Before the energy crisis, the UK had similar electricity prices to other European countries. 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Ministers have also increased financial support for energy-intensive businesses by providing relief on network charges and other fees. But Claire Coutinho, the shadow energy secretary, says that while in office she had to constantly battle with officials who wanted to add even more levies to bills. 'Cheap energy has to be our priority – otherwise we will keep offshoring British industry to China, which is just mad,' she says. In Sheffield, Marcegaglia's Brüggmann says the plant is preparing to invest in a new state-of-the-art electric furnace that will reduce electricity costs and boost production capacity. It will also benefit from the new government scheme to cut power bills. Yet even with that support, steelmakers will still face higher electricity prices than competitors in France and Germany, according to industry calculations. 'We want to produce more next year,' he says. 'We're the only producer of stainless steel still here. But what's the Government's commitment to this industry?' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Britain must lower power prices to meet climate goals, advisors say
By Susanna Twidale LONDON (Reuters) -Britain must cut its electricity prices to speed up the adoption of emission curbing technology, such as electric vehicles and heat pumps, to meet its climate targets, the country's climate advisers said in a progress report on Wednesday. Britain aims to reach net zero emissions by 2050, which will require the electrification of sectors such as heat and transport, now mostly powered by fossil fuels, while it is also grappling with high electricity costs. "By far the most important recommendation we have for the government is to reduce the cost of electricity both for households and businesses," Piers Forster, interim chair of the Committee on Climate Change said, in a briefing on the annual report. "If we want the country to benefit from the transition to electrification, we have to see it reflected in the utility bills," he said. Britain's energy regulator Ofgem, which sets a cap on domestic energy prices, reduced the limit by 7% from July. However it remains around 50% above levels in the summer of 2021, before Russia's invasion of Ukraine sent gas prices soaring and sparked an energy crisis in Europe. The Committee publishes annual reports about the government's progress towards its climate targets. With more action, Britain can achieve a 68% reduction in emissions between 1990 and 2030, it has pledged under the Paris climate agreement, the report said. It made 43 priority recommendations including lowering energy costs, speeding up grid connections for new clean power projects, introducing regulations mandating only low-carbon heating systems for new homes, and publishing a net zero skills action plan. Britain's emissions have already fallen around 54% from 1990 thanks to increased renewable power capacity and the closure of its coal-fired power plants. (Reporting By Susanna TwidaleEditing by Tomasz Janowski)
