Warning on heat pumps subsidy axe

THE Government would be taking "a sledgehammer" to the heat sector by restricting subsidies for eco-friendly heat pumps, energy industry experts and green groups have warned.

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Chancellor Rachel Reeves is reportedly planning to announce a series of measures that could mean hundreds of thousands of homeowners lose their right to financial support for these clean heating systems.

Under its boiler scheme, the Government offers grants of up to £7,500 in England for householders to install heat pumps, which are more expensive than gas boilers but use electricity to transfer thermal heat from the outside air into home heating.

However, according to the Guardian, sources briefed on the Budget said Ms Reeves will take energy efficiency levies off bills and then fund them through the existing warm homes plan.