Heat pump handout? It'll take 25 years to get your money back
The Energy Secretary would offer the grants to reduce the running costs of the green technology, under plans to phase out gas boilers.
Heat pumps typically cost around £5,000 once a taxpayer-funded subsidy of £7,500 is applied, so it would take decades to recoup the upfront cost through savings to bills.
Under the plans, all homes with heat pumps would see an average fall in energy bills of 15 per cent, paid for by taxpayers.
And the money would come from the £13.2billion 'warm homes' fund agreed by Chancellor Rachel Reeves at the spending review last month.
Industry figures are understood to have put forward the submissions to the Department for Energy Security and Net Zero to incentivise homeowners to quit gas boilers.
The cost of electricity per unit for consumers is about four times higher than gas, which can make heat pumps more expensive to run.
An additional £200 off bills could help to plug this gap.
This could be funded through a levy on gas bills, covered by a Government fund. The cost to taxpayers would increase each year if more houses install heat pumps.
There could also be support for the 300,000 households that have already got the technology, and taxpayers could completely cover the cost of heat pumps for low-income families.
A Labour source said the proposals were not under active consideration by the department but were requests from the industry.
However, they added that Mr Miliband is looking to help those who do want to install the environmentally-friendly technology.
Heat pumps produce three to four times the energy they use, making them much more efficient than a gas boiler, but they also have a far higher upfront cost.
The UK's climate change committee said earlier this year that half of homes should have pumps installed by 2040 to meet the country's legal goal of net zero emissions by 2050, up from about only 1 per cent now.
There will be a consultation on the plans in October, according to The Times, and a Bill would need to pass through Parliament to enact them.
A spokesman for the Department for Energy said: 'We do not recognise this speculation. Our clean energy mission is the best route to bring down bills for good.'
Meanwhile, the Conservatives announced they would remove blocks on building new nuclear power plants to lower bills if they win the next election.
They said the current 'green tape' adds millions of pounds to project costs.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News
an hour ago
- Sky News
Unite votes to suspend Angela Rayner over Birmingham bin strike
Labour's largest union donor, Unite, has voted to suspend Deputy Prime Minister Angela Rayner over her role in the Birmingham bin strike row. Members of the trade union, one of the UK's largest, also "overwhelmingly" voted to "re-examine its relationship" with Labour over the issue. They said Ms Rayner, who is also housing, communities and local government secretary, Birmingham Council's leader, John Cotton, and other Labour councillors had been suspended for "bringing the union into disrepute". There was confusion over Ms Rayner's membership of Unite, with her office having said she was no longer a member and resigned months ago and therefore could not be suspended. But Unite said she was registered as a member. Parliament's latest register of interests had her down as a member in May. The union said an emergency motion was put to members at its policy conference in Brighton on Friday. Unite is one of the Labour Party's largest union donors, donating £414,610 in the first quarter of 2025 - the highest amount in that period by a union, company or individual. The union condemned Birmingham's Labour council and the government for "attacking the bin workers". Mountains of rubbish have been piling up in the city since January after workers first went on strike over changes to their pay, with all-out strike action starting in March. An agreement has still not been made. 2:58 Ms Rayner and the councillors had their membership suspended for "effectively firing and rehiring the workers, who are striking over pay cuts of up to £8,000", the union added. 'Missing in action' General secretary Sharon Graham told Sky News on Saturday morning: "Angela Rayner, who has the power to solve this dispute, has been missing in action, has not been involved, is refusing to come to the table." She had earlier said: "Unite is crystal clear, it will call out bad employers regardless of the colour of their rosette. "Angela Rayner has had every opportunity to intervene and resolve this dispute but has instead backed a rogue council that has peddled lies and smeared its workers fighting huge pay cuts. "The disgraceful actions of the government and a so-called Labour council, is essentially fire and rehire and makes a joke of the Employment Relations Act promises. "People up and down the country are asking whose side is the Labour government on and coming up with the answer not workers." Sir Keir Starmer's spokesman said the government's "priority is and always has been the residents of Birmingham". He said the decision by Unite workers to go on strike had "caused disruption" to the city. "We've worked to clean up streets and remain in close contact with the council [...] as we support its recovery," he added. A total of 800 Unite delegates voted on the motion.
Times
2 hours ago
- Times
Superinjunctions must never be used to shroud mistakes
British forces in Helmand province SUNDAY TIMES PHOTOGRAPHER RICHARD POHLE I n September 2023 a High Court judge granted the British government its first superinjunction. The order by Mr Justice Knowles prevented not only reporting of a terrible data breach but any reference even to the existence of restrictions. The unprecedented measure, extended several times at the request of Conservative and Labour governments, finally lapsed last week, allowing the public to learn that the details of 19,000 Afghans who had worked with the UK before the Taliban retook power had been released on Facebook, putting them and others at risk of torture or death. The mistake by an official in the UK special forces headquarters led the government to launch a secret refugee scheme that relocated to the UK more than 16,000 people compromised by the leak, at a cost of £850 million. The incompetence of the original act, which involved a spreadsheet containing hidden data being shared via email, should not cloud the argument over whether the superinjunction was reasonable. It would have been worse had the individuals affected suffered reprisals from the Taliban. Ben Wallace, then the Tory defence secretary, was undoubtedly terrified of costing lives when he first requested an injunction in August 2023. But as the injunction became a superinjunction, its very existence became a secret. Its lifespan then stretched into two years. Government officials warned the Commons and Lords Speakers not to allow any parliamentary questions hinting at it. The Labour opposition was not informed; nor was the intelligence and security committee or the defence committee. There came an indeterminate point when the interests of the Afghan breach victims faded and the interests of Whitehall officials grew stronger. Mr Justice Chamberlain, who took over the case and ruled in favour of maintaining the restrictions in November 2023, said the superinjunction was 'likely to give rise to the understandable suspicion that the court's processes are being used for the purposes of censorship'. It fell away at midday on Tuesday after a retired deputy chief of defence intelligence, Paul Rimmer, completed a review that concluded the leaked data had not spread as widely as feared and its value to the Taliban, and risk to those named in it, had diminished. Media organisations were allowed to reveal that the resettlement scheme had been hidden even from councils responsible for providing housing at considerable cost to the taxpayer, and that the Ministry of Defence's annual report had been massaged to avoid mentioning that a data incident had been reported to the Information Commissioner's Office. All this is a disgraceful abuse of the original argument over national security and the safety of the Afghans affected. The 2022 breach was a blunder rather than a systemic problem such as the infected blood or Post Office scandal. In those cases elaborate and long-running institutional cover-ups were exposed only thanks to media scrutiny, which eventually forced the government to take responsibility. As Heather Brooke brilliantly argues today, UK officialdom nearly always tends towards obfuscation and non-disclosure. Ministers and civil servants dodge embarrassment wherever they can. We must ensure that the original decision to grant the government a superinjunction is a one-off, not a precedent — and that those who rule us cannot again abuse such a powerful tool.
Daily Mail
2 hours ago
- Daily Mail
SARAH VINE: Why is 16 too young for voting? Ask a brain scientist...
As the mother of two young adults (22 and 20), I am tentatively enjoying some early fruit of my parental labours. My daughter has just graduated with a first from Manchester (shameless mum-brag, guilty as charged), and my son is gainfully employed over the summer holidays in a job that not only gets him out of the house but also keeps him fit and fed (he's a busser in a restaurant). But the news last week that our glorious leader, Sir Keir Starmer, has followed through on his electoral threat to lower the voting age to 16 has rather dampened my mood. It is, quite simply, the height of idiocy. As any Year 11 teacher will tell you, most 16-year-olds aren't fit to tuck their own shirt in, let alone participate in the democratic process.
