The UK government’s Climate Change Committee (CCC) has called for urgent action to accelerate the transition to low-carbon heating, recommending that all new-build homes should be fitted with heat pumps rather than gas boilers. The committee, which advises on reducing emissions, has proposed an immediate ban on gas grid connections for new homes as part of its wider strategy to decarbonise the UK by 2050.
Heat Pump Targets & Electrification Goals
The CCC’s latest Seventh Carbon Budget report outlines the need for an 87% reduction in emissions by 2040, compared to 1990 levels. Around 60% of this reduction is expected to come from electrification, including the widespread replacement of gas boilers with heat pumps.
The report sets ambitious targets for heat pump installations:
- 1 in 2 homes should have a heat pump by 2040 (up from just 1% in 2023)
- Heat pump installations must increase from 60,000 in 2023 to 450,000 per year by 2030
- By 2035, annual installations must reach 1.5 million
The CCC argues that this growth aligns with progress in other countries and suggests that heat pumps would naturally replace old gas boilers at the end of their lifespan.
Key Policy Recommendations
To meet these targets, the CCC has proposed several measures, including:
- Reinstating the 2035 target requiring all replacement heating systems to switch from gas to heat pumps.
- Funding insulation and energy efficiency upgrades for social housing and low-income households.
- Creating a long-term programme for decarbonising public sector buildings with dedicated capital investment.
- Encouraging the shift to low-carbon construction equipment through regulations and potential subsidies.
Industry Reactions & Challenges
The proposals have been met with mixed reactions across the industry. While many agree on the need for rapid decarbonisation, concerns have been raised about skills shortages, energy pricing, and the financial burden on homeowners.
Smith Mordak, CEO of the UK Green Building Council, emphasised the need for immediate action:
“The cost of inaction remains far greater than the price of transition. By acting now, we can ensure that the places we live and work in enable people and the planet to flourish.”
However, Fiona Hodgson, CEO of the Plumbing and Heating Federation, warned that the current workforce lacks the capacity to meet these targets. She urged the government to invest in skills training, stating:
“Heat pump adoption cannot be driven by wishful thinking. There simply aren’t enough trained professionals to install them. Without serious investment in skills training and workforce expansion, the UK will fail to meet its heat pump targets.”
Hodgson also highlighted a major obstacle in energy pricing, pointing out that electricity costs significantly more than gas.
“The public will not switch to a more expensive heating system in the middle of a cost-of-living crisis. Without serious reform to energy pricing, the transition to low-carbon heating will remain a pipe dream.”
A Boost for Green Jobs & Economic Growth
Despite the challenges, many see the shift towards heat pumps as an economic opportunity. Toby Perkins, Chair of Parliament’s Environmental Audit Committee, described the transition as a chance to create thousands of new green jobs and support a thriving net-zero economy.
Similarly, CCC Interim Chair Piers Forster framed the transition as a positive step for both the environment and the economy:
“Decarbonisation isn’t just about reducing emissions—it’s about creating jobs, strengthening the economy, and lowering household bills. Our analysis shows that climate action and economic growth go hand in hand.”
Government Funding for Green Housing Initiatives
Alongside these recommendations, the Treasury’s National Wealth Fund announced plans to guarantee £250m in loans for the social housing sector over the next six months. These funds will support retrofit projects, including:
- Low-carbon heating installations.
- Insulation & energy efficiency upgrades.
- Low-carbon lighting and renewable energy solutions.
Currently, 34% of social housing in England has an Energy Performance Certificate (EPC) rating below C. The National Housing Federation estimates that £36bn in investment is needed to fully decarbonise housing association properties.
The Road Ahead
While the CCC’s proposals set a clear path towards a net-zero future, their success will depend on government action, industry readiness, and public willingness to adopt new heating systems. Without addressing cost barriers, skills shortages, and infrastructure limitations, the UK may struggle to achieve its ambitious decarbonisation targets.
With the right investment in skills, incentives, and energy reforms, the transition to low-carbon heating could deliver economic, social, and environmental benefits—ensuring that the UK remains a leader in green innovation and sustainable development.
