Mark Carney Lobbied Reeves for Heat Pump Subsidy Changes

Former Bank of England governor Mark Carney is under scrutiny for allegedly lobbying ministers, including Chancellor Rachel Reeves, to relax rules on heat pump subsidies, a move that would benefit Brookfield Asset Management, the company he chairs.

The proposed changes would allow companies, including Brookfield-owned HomeServe, to claim government subsidies for heat pump installations through rental schemes, expanding the market for these environmentally friendly systems.

HomeServe chairman Richard Harpin revealed that Carney raised the issue of adjusting the government’s £450 million Boiler Upgrade Scheme with Reeves, suggesting changes that would allow businesses to access taxpayer subsidies. Currently, the £7,500 grant offered through the scheme is only available to homeowners who purchase their own heat pumps. HomeServe wants to introduce a rental model to make heat pumps more accessible to households that are unable or unwilling to bear the upfront cost of installation.

The request aims to modify the scheme’s regulations to allow companies to offer heat pumps for rent, with the government subsidy supporting these installations. Harpin confirmed that Carney used his position to push for the changes in the UK and France, where Brookfield is involved in home energy upgrades as well.

While Brookfield has denied that Carney specifically raised the Boiler Upgrade Scheme with the Chancellor, the company confirmed he had advised the government on macroeconomic topics through his role with the National Wealth Fund task force.

HomeServe sees heat pump installation as a major business opportunity, especially if the Treasury can be persuaded to adjust subsidy rules. Harpin stressed that changing the legislation would enable quicker heat pump deployment and help the UK meet its decarbonisation targets. However, no concrete commitments have been made by the government yet.

Heat pumps, though widely promoted as a sustainable alternative to gas boilers, remain costly, with installation prices ranging from £7,000 to £15,000. The Boiler Upgrade Scheme, designed to offset some of these costs, has seen slow uptake, with only about 33,000 grants issued, far short of the government’s goal of 600,000 installations per year by 2030.

Industry experts, including the Heat Pump Association, support any initiatives that will accelerate the adoption of heat pumps in the UK, but critics are wary of potential conflicts of interest involving Carney and his business interests. As the October 30 budget approaches, companies like HomeServe continue their lobbying efforts, hoping for rule changes that would benefit both the environment and their bottom lines.