UK Delays Clean Heat Scheme Amid Industry Pressure
The government postpones a key climate initiative to boost heat pump installations, sparking criticism and a market investigation.
- The UK government has postponed the implementation of the Clean Heat Market Mechanism, initially set for April 2024, to April 2025, following pressure from gas boiler manufacturers.
- The scheme aimed to increase the installation of low-carbon heat pumps to meet the UK's net zero emissions target but faced opposition, labeled as a 'boiler tax' by the industry.
- Reforms to the boiler upgrade scheme will allow households to save approximately £2,500 on heat pump installations by removing the insulation upgrade requirement.
- The energy secretary has requested a Competition and Markets Authority investigation into the boiler market amid concerns over unfair price hikes by manufacturers.
- Critics argue the delay undermines the UK's climate goals and jeopardizes the target of installing 600,000 heat pumps annually by 2028.