26 February 2025

The MCS Foundation has welcomed the Climate Change Committee’s recommendation for removing social and environmental levies from electricity to ensure maximum consumer savings are achieved with heat pumps, and for a 2035 phase-out date for new gas boilers. 

Last year, there were nearly 60,000 MCS certified installations of heat pumps in the UK, and nearly 100,000 heat pumps sold – a rate of installation that will need to accelerate to meet climate targets. 

A report by Cornwall Insight, commissioned by The MCS Foundation, found that reducing electricity costs by removing levies placed on electricity would save households with a heat pump an additional £300 a year, compared with £120 for households without a heat pump. The MCS Foundation agrees with the Climate Change Committee that reducing electricity prices would thus support heat pump uptake. 

David Cowdrey, Acting Chief Executive at The MCS Foundation, commented, “The latest Carbon Budget could not be clearer on the need to accelerate the transition to clean heating, driven by heat pumps. 

“Heat pump installations have reached record levels in the UK, thanks in part to Government grants. The Labour government has taken welcome steps towards removing additional barriers to heat pump uptake, including removing unnecessary planning restrictions. 

“To continue with the rise in heat pumps and meet the goals advised by the Climate Change Committee, the Government should now act to reduce electricity prices, ensuring that a heat pump is always the cheapest option and encouraging existing homeowners to make the switch.  

“Unequivocally committing to a 2035 phase-out date for new gas boilers would send the clearest of signals that fossil fuels will soon be on their way out in our homes, and that clean heating is the future.”