• The UK government is prioritising heat pumps in 2025 with £42 million funding, £7,500 grants, and support for installations.
  • From 2025, new homes must use heat pumps and solar panels, with grants available for existing homes.
  • The government is removing installation barriers, promoting domestic manufacturing, and increasing funding to boost heat pump adoption.

How will 2025 shape the future of the UK’s clean heating agenda?

2025 will be a crucial year for the transition to low-carbon home heating solutions. While the UK government has scrapped its plan to ban gas boilers by 2035, the push for heat pumps and other energy-efficient technologies remains strong.

The scrapping of the gas boiler ban followed criticism of the original plan, which aimed to phase out gas boilers by 2035. Critics argued that home heating accounts for a significant portion of the UK’s carbon emissions, about 18%. Prime Minister Rishi Sunak reversed the policy, settling on a more gradual approach, with an 80% reduction in emissions rather than an outright ban.

Still, the government is pressing forward with low-carbon heating methods. 

Under the “Future Homes Standard” (FHS), all new homes built from 2025 onward will be required to use low-carbon technologies like heat pumps and solar panels. The policy also includes a £7,500 grant to incentivise homeowners to install heat pumps, helping ease the transition.

Heat pumps, which extract heat from the air, ground, or water, are seen as the leading alternative to gas boilers. They are already widely used in countries like Norway and Germany, where adoption rates are higher than in the UK. The government expects that most UK homes will eventually switch to heat pumps, and it has pledged significant funding to support this shift. For example, £42 million will go to the Heat Pump Ready programme to accelerate the rollout of heat pumps, while an additional £30 million is earmarked for the Boiler Upgrade Scheme.

These efforts are expected to make a real difference. Homes that install heat pumps, along with solar panels and battery storage, could save up to £46,600 on energy bills over the next 25 years. This makes them not only a good choice for the environment but also for long-term household savings.

To make heat pump installation easier, the government is removing barriers, such as the “1-metre rule” that previously restricted where heat pumps could be placed. Additionally, a Clean Heat Market Mechanism will launch in April 2025 to encourage manufacturers to increase production and drive innovation. By 2026, heat pumps will need to feature smart technology to optimise energy use and efficiency.

However, the transition will not be without its challenges. 

Some critics argue that weak policies could shift the cost of the transition onto homeowners rather than developers, creating affordability issues. For lower-income households, the government has set up several schemes to help, such as the Energy Company Obligation and the Social Housing Decarbonisation Fund. These initiatives aim to ensure that the shift to heat pumps is accessible to all segments of society.

The government is also focusing on domestic heat pump manufacturing, with companies like Ideal Heating benefiting from new investments aimed at increasing UK production. This push for domestic manufacturing is expected to create thousands of jobs and help meet growing demand.

Looking forward, the UK will continue to face questions around affordability and the pace of transition. Industry experts stress that clear, stable policies will be essential for boosting confidence in the heating and insulation sectors. As it stands, the government’s funding and regulatory changes provide hope that the heat pump sector will gain significant momentum by 2025.

With further funding expected in the Spring Spending Review and the publication of the Warm Homes Plan, which will detail heat pump deployment, the government appears committed to making heat pumps a mainstream solution. But whether the sector can reach its full potential will depend on how effectively these policies are implemented and whether they are accompanied by widespread consumer education and support. The coming years will be critical in shaping the future of home heating in the UK.