Ed Miliband is said to be poised to scrap heat pump targets in what would be a humiliating U-turn. Budget cuts threaten to hit the Energy Secretary’s plans for Net Zero, according to industry sources. A source told the Daily Telegraph that the Labour Government is planning to get rid of a key 2028 deadline.
That is the point when the previous Conservative government declared 600,000 heat pumps would have to be installed every year in the drive to slash Britain’s planet-warming carbon emissions. Prime Minister Sir Keir Starmer’s Government has refused to commit to the deadline. Possible cuts to Mr Miliband’s budget could lead to reduced funding for installations of the devices, which capture heat from the air, water or ground to warm buildings.
The Telegraph‘s source said: “The conversations I have been involved in suggest they’re planning to get rid of the 2028 deadline, and it’s not in any of their PR.”
They added that because the budget is limited and the current Government “isn’t the best with finances”, the Warm Homes Plan will also “get shrunk”.
The Warm Homes Plan aims to help Brits lower their energy bills and includes £7,500 grants for heat pumps via the Government’s Boiler Upgrade Scheme.
Another industry source told the same publication they haven’t heard talk of the 600,000 target for months. They added that while setting an ambition “is great”, declaring absolute target numbers will always be a problem.
Dr Jan Rosenow, Senior Jackson Research Fellow at Oriel College, Oxford University, told the Express confidence among investors would suffer should Labour get rid of the target.
He said: “Heat pumps are the key technology for decarbonising home heating in the UK as the Government’s own analysis shows.
“The heat pump market surged last year making it one of the fastest growing markets around the world, although from a low base.
“It is important to keep the eye on the price and, even if ambitious, keep the heat pump target in place. Scrapping it would damage investor confidence and lead to market turmoil.”
Mike Foster, of the Energy and Utilities Alliance, said “out of touch” targets don’t help anyone and scrapping the target is “plain common sense”.
He said: “What matters in the fight against climate change is how much carbon there is in the atmosphere, not how many heat pumps are in people’s homes.”
A Department for Energy Security and Net Zero spokesperson said: “The energy shocks of recent years have shown the urgent need to upgrade British homes.
“Through our Warm Homes Plan, up to 300,000 households will benefit from upgrades this year, such as insulation, double glazing, solar and heat pumps – making them cheaper and cleaner to run.
“We have almost doubled the budget for the Boiler Upgrade Scheme to £295million and it recently enjoyed its best month since opening, with 4,028 applications in March 2025, up 88% on the same month last year.”
Banking and finance industry body UK Finance released findings on Tuesday (June 3) which show the UK needs to install around 1.5 million heat pumps per year by 2035 to meet its carbon reduction goals.
The report, which includes YouGov research, indicated that 54% of people felt the main barrier putting them off getting a heat pump was the up-front cost.
But 44% said they would switch if they were provided with a clear idea of the savings in running costs.
Figures from trade standards body MCS Certified show that as of August 2024 there were 250,000 heat pump installations in the UK.