Gas boiler installations outnumbered heat pumps by 15 to one in UK last year

Gas boiler installations in the UK outpaced heat pump fittings by more than 15 to one last year, highlighting how far the country still has to go in meeting its clean energy targets.

According to new research by the Resolution Foundation, the uptake of low-carbon alternatives is well off track — with poorer households particularly shut out of the transition.

Fewer than 100,000 heat pumps were installed across the UK in 2023, compared to around 1.5 million gas boilers, the majority of which were replacements. Worryingly, only 13% of new homes were fitted with heat pumps, meaning gas remains the default heating method in most new-build properties.

The government’s net zero plans require around 450,000 heat pumps to be installed each year by 2030, but current trends fall far short. High upfront costs are a major barrier, particularly for low-income households.

The £7,500 boiler upgrade scheme grant available in England and Wales still leaves homeowners paying an average of £5,400 out of pocket. That’s unaffordable for many — and it’s showing in the distribution of heat pump adoption.

Only 19% of heat pumps in use are located in the poorest third of neighbourhoods, while 45% are found in the richest third, the report found.

“The mass adoption of heat pumps in our homes is vital if Britain is to hit its net zero targets,” said Jonathan Marshall, principal economist at the Resolution Foundation. “But the rollout is miles off track, with heat pumps particularly out of reach for many poorer families.”

The thinktank has proposed reforming the subsidy system to offer top-up grants of £3,000 for lower-income households — specifically, those with a gross income below £30,000 and non-pension assets below £500,000. This would cost approximately £370 million a year by 2030.

Running costs remain a disincentive

Even beyond installation costs, running a heat pump remains more expensive than using a gas boiler. That’s despite heat pumps being far more energy efficient. The problem lies in the structure of the UK’s energy pricing model, where green levies are applied to electricity bills rather than gas, making electricity — and therefore heat pumps — more expensive to run.

At current prices, switching from gas to a heat pump would add an average £32 to a household’s annual energy bill. However, if levies were shifted from electricity to gas, most households would save over £300 a year, the report found.

The Future Homes Standard, expected to require all new-build homes to be fitted with low-carbon heating systems, has yet to be published. Mandating heat pumps in new homes would expand the market, increase competition and drive down costs — but delays in regulation are holding back progress.

A spokesperson for the Department for Energy Security and Net Zero said: “Our warm homes plan will transform homes across the country by making them cheaper and cleaner to run, rolling out upgrades to up to 300,000 homes this year. We have almost doubled the boiler upgrade scheme’s funding to help more people install heat pumps.”

The government has committed £3.4 billion over the next three years, including £1.8 billion for fuel poverty schemes, with full details to follow in its upcoming spending review.

As the UK eyes its 2030 climate commitments, pressure is growing for clearer regulations, improved affordability, and targeted support to ensure the heat pump rollout becomes a reality — not just a policy ambition.