The 2025 Progress in Reducing Emissions report confirms that heat pump installations in existing homes rose by 56% in 2024, reaching 98,000 across the UK. However, despite this sharp rise, the CCC emphasises that only around 1% of UK homes are currently heated by a heat pump, placing the country well behind leading European markets.

The CCC attributes the recent uptake to improved incentives such as the Boiler Upgrade Scheme and the introduction of the Clean Heat Market Mechanism. It also welcomes the removal of planning barriers, such as the former one-metre rule for external units. Nonetheless, it warns that installations must continue to accelerate to stay on track for decarbonising buildings.

A key constraint remains the cost imbalance between electricity and gas. The report repeats last year’s headline recommendation: remove policy levies from electricity bills. The CCC states that this measure alone could significantly reduce operating costs for heat pump users and help tip the scales in favour of electric heating.

Looking ahead, the committee flags the forthcoming Warm Homes Plan as a critical opportunity for the government to address long-term funding, market confidence, and the proposed phase-out of fossil fuel boilers by 2035. Without additional commitments, around 14% of the emissions reductions needed by 2030, primarily tied to heating, remain unsupported by credible plans.

The CCC concludes that while the current growth trajectory is promising, reaching Net Zero will require “confidence, consistency and clarity” from policymakers to ensure UK homes transition swiftly away from gas.

“Today’s report from the Climate Change Committee on the Government’s progress to reduce emissions is a stark reminder that whilst the heat pump sector has experienced growth, robust and comprehensive plans are still needed to scale up deployment and meet the UK’s legally binding carbon reduction targets,“ said the Chief Executive of the Heat Pump Association, Charlotte Lee. “Key to this is the disparity between electricity and gas pricing, which remains a major barrier to the widespread adoption of heat pumps. Without forward-thinking policy intervention to address this issue, the scale of growth required will not be realised.

“The sector is waiting for the Warm Homes Plan, due to be published later this year. This Plan must set a clear, ambitious and achievable growth trajectory for heat pumps to provide confidence for the market to invest.”