ACAN has proudly signed the new E3G coordinated cross-industry letter calling on the Prime Minister and Chancellor to protect the Warm Homes Plan and safeguard the Boiler Upgrade Scheme (BUS) and the Energy Company Obligation (ECO). This intervention could not be more timely. Reports that the Warm Homes budget is under threat have already shaken investor confidence and caused concern across the entire low carbon heating sector.
The Warm Homes Plan plays a pivotal role in lowering household bills, reducing fuel poverty and strengthening the United Kingdom’s energy security. It also supports a rapidly expanding workforce that has spent years building the skills and capacity needed to deliver clean, efficient heating at scale. Any cuts at this moment would undermine that progress and risk long term damage to an industry that is essential for meeting our climate commitments.
We have seen this pattern before. The Feed in Tariff scheme transformed the solar market by providing certainty and a clear long term pathway for investment. That policy stability created investor confidence, unlocked supply chains and enabled businesses to scale. These are the conditions required for decarbonisation, energy independence and long term affordability. The same is true for heat pumps. These technologies have long investment cycles that extend beyond parliamentary terms and must be shielded from short term political shifts.
The suggestion that support for heat pumps unfairly benefits the middle classes needs to be addressed head on. It would be both unethical and politically unwise to restrict participation in a new and growing industry to those on the lowest incomes. Early stage technologies always face higher costs while supply chains mature. If only households with the least financial resilience were encouraged to engage during this phase, they would be exposed to the inevitable challenges that arise as the sector improves. Installation quality, running cost optimisation, consumer confidence and public understanding all require time to develop. A broad and diverse early adopter base is crucial for driving innovation, reducing costs and accelerating learning across the industry. This is how we ensure that people in fuel poverty ultimately gain access to the most affordable and efficient heating solutions.
The BUS and ECO play different yet complementary roles. BUS stimulates volume in the able to pay market, creating the scale needed for manufacturers and installers to reduce costs. ECO then ensures that households with the greatest need receive targeted support. Removing or weakening either pillar would destabilise the entire strategy and dramatically slow the transition to clean heat.
Heat pumps cut gas use by more than 80 percent per building. By expanding deployment, the UK can reduce its exposure to volatile international gas markets that have cost households and the economy more than one hundred billion pounds over the last four years. In other words, maintaining funding for heat electrification is not a cost. It is an investment in long term economic stability.
The path forward is clear. Government should remove policy costs from electricity bills, support households to upgrade their homes and focus on structural changes that lower system wide electricity costs. This approach would deliver permanent savings, stronger energy security and a resilient domestic clean heat industry.
This is a moment for clarity, consistency and commitment. Protecting the Warm Homes Plan will protect jobs, strengthen national resilience and ensure that the UK remains on course to deliver affordable and decarbonised heating for all.
ACAN stands with the cross-industry coalition urging government to take this vital step.
