Heat pumps may never be cheaper than gas boilers, Ed Miliband has said, despite Labour sneaking a ‘boiler tax’ through Parliament.
The Energy Secretary confirmed that the government has no current plans to introduce a ban on gas boilers, but Mr Miliband told MPs a ban could come into force ‘at some point in the future’.
The scheme, which will come into force in April, means boiler manufacturers will be fined if they fail to sell enough heat pumps.
Companies in the sector have previously warned it would add £120 to the cost of a new boiler – leading it to be dubbed the ‘boiler tax’.
Speaking at the Energy Security and Net Zero Committee on Wednesday, Mr Miliband said he was ‘wary’ of stopping people from having gas boilers by a specific date if the government cannot guarantee greener alternatives will be cheaper.
With a significant amount of the UK’s carbon footprint coming from gas heating of homes, the previous Conservative government had outlined plans to ban the sale of new gas boilers by 2035.
This meant households looking to replace their boilers would have to opt for a greener option for heating their home by that date, such as a heat pump.
Former prime minister Rishi Sunak was criticised by scientists, campaigners and MPs in 2023 when he backtracked on several net zero policies, including weakening the mooted boiler ban to an 80 per cent phase-out by 2035.
Heat pumps may never be cheaper than gas boilers, Ed Miliband (pictured) has said
The scheme, which will come into force in April, means boiler manufacturers will be fined if they fail to sell enough heat pumps
Labour has ditched plans for a 2035 ban on gas boilers in its new housebuilding standards (file photo)
Last week, it was reported that the new government had scrapped plans for a 2035 ban on gas boilers in its new housebuilding standards.
Quizzed by MPs about this decision, Mr Miliband told the committee that Labour never had plans for such a ban.
He said: ‘I’m very cautious on these questions because we can say to people: ‘You need to get a heat pump, not a gas boiler, potentially at some point in the future’.
‘But I’m very wary that we’re going to stop people having gas boilers at a point when we can’t guarantee that heat pumps are going to be cheaper for people.’
The Energy Secretary went on to argue that in opposition, Labour never said it would reverse Mr Sunak’s row-back on his Government’s boiler ban plans.
‘We did that deliberately because my bottom line is that we proceed in a way that means we can say to people: “You’re going to be better off in making this transition”,’ Mr Miliband said.
‘I do not want to be in a position where I say to people: “You must go down this road” and then people say to me rightly: “Look, you’re going to make me worse off”.
‘So that’s our position on that.’
Labour is still preparing to impose swingeing taxes on boiler manufacturers if they fail to meet targets for installing heat pumps
The new targets are set to come into force in April, amid previous warnings that they could hike the cost of a new boiler by £120
Reports last week also said the Government’s upcoming future homes standards will include minimum criteria for energy efficiency that mean newly built properties will not be able to install gas boilers if they are to meet the new rules.
Asked about whether there would be a mandatory ban on fossil fuel heating in new homes under the new standards, Mr Miliband said it would be a matter for the Ministry of Housing, Communities and Local Government, adding that they will be ‘coming forward with proposals’.
He said: ‘The thing I would say about this is that there are massive advantages for us from the outset ensuring that homes are built to a low-carbon spec.’
‘And I think there’s enthusiasm for this among the housebuilders and others,’ Mr Miliband added, citing a company working with housebuilders to guarantee zero bills homes for 10 years as a ‘massively exciting concept’.
‘That’s turning the prospect of zero carbon into a consumer benefit and that’s what we’re about,’ he said.
New figures show that the number of heat pumps being installed jumped 43 per cent last year.
The data from the Microgeneration Certification Scheme (MCS), the UK’s quality mark for renewable technology installed in homes and small businesses, shows there were almost 60,000 certified installations of heat pumps in 2024.
That is a 43 per cent increase on 2023 installation rates, bringing the total number of certified heat pump installations in UK homes and small businesses to more than 275,000.
But installation rates are still well below the target of 600,000 heat pump installations a year by 2028 set by the previous government as part of the drive to cut greenhouse gas emissions from home heating and curb reliance on gas.
The MCS said the boiler upgrade scheme in England and Wales, which offers grants of up to £7,500 for installing heat pumps, and the home energy Scotland grant and loan scheme of up to £9,000 for qualifying households had played a key part in accelerating the take-up of the technology.
Overall its data dashboard shows that there were a record more than 260,000 certified small-scale renewables and clean energy installations in UK homes and small businesses in 2024, including heat pumps, solar panels and battery storage.
The figure is a 7 per cent increase on 2023, which was itself a record year for installations, the MCS said, and brings the total number of certified installations past the two million mark.
Solar photovoltaic (PV) panels for generating electricity remain the most popular renewable technology for people to install at a small scale, with more than 180,000 certified installations last year, while a 20,000 batteries were installed in homes and small businesses, the MCS said.
Ian Rippin, chief executive at the MCS, said: ‘More consumers are making the switch to homegrown energy, placing their trust in MCS certified contractors to give them confidence in their renewable installations.’
‘As the numbers rise and more people benefit from homegrown energy, it’s crucial that standards are maintained in order to continue the momentum,’ he said, adding that MCS product and installation standards had a key role in building confidence in clean technology.
Minister for energy consumers Miatta Fahnbulleh said: ‘From heat pumps to solar panels, renewables are essential for supporting working people to secure affordable, homegrown power for their homes and businesses.
‘By almost doubling the budget for our boiler upgrade scheme in the next financial year, we hope that records for renewable installations continue to be overtaken.’