Nesta, which describes itself as the UK's innovation agency for social good, submitted written evidence to a parliamentary inquiry on home energy efficiency, published in August 20231. The submission, numbered HEA0066, sets out four policy areas: committing to phase out gas boilers by 2035 or earlier, making low-carbon heating affordable, increasing the number of skilled heat pump installers, and better planning for electrification1.
On phase-out dates, Nesta states that the current UK government has suggested a 2035 phase-out date for fossil fuel boilers, although this is currently only indicative, and that the Skidmore Review suggested moving this date forward to 20331. It also argues that ambiguity over hydrogen is undermining the signal a phase-out date would send, because some parts of the heating and gas distribution industries assume a switch to hydrogen boilers1.
"The UK government and devolved governments should confirm a 2035 phase-out date for fossil fuel boilers, and consider going earlier if a transition is possible in a shorter time period"
On costs, Nesta says installing an air source heat pump typically costs over £10,000, compared to £2,000 to £4,000 for a typical gas boiler, and that up to 38% of homeowners would choose a heat pump to replace a gas boiler even at this early stage in their development1. It recommends a cap on the electricity to gas price ratio, ideally reaching 2.5, which it says would reduce heat pump running costs by £110 a year for a typical home1. It also calls for removal of the 30,000 cap on the number of subsidies available under the Boiler Upgrade Scheme in England and Wales, and for consideration of increasing the grant above £5,000 for an air source heat pump1.
| Nesta recommendation | Detail given |
|---|---|
| Fossil fuel boiler phase-out | Confirm 2035, consider earlier |
| Electricity to gas price ratio | Cap, ideally reaching 2.5 |
| Boiler Upgrade Scheme | Remove 30,000 subsidy cap |
| Air source heat pump grant | Consider increasing above £5,000 |
| Heat pump engineers | Add 4,000 to 6,000 a year from 2025 |
Nesta says heat pumps and similar technologies typically reduce energy use by at least 3 times compared to boilers, and that using green hydrogen would require 4 to 6 times more renewable energy per unit of heat than a heat pump1. It states that UK uptake of low-carbon heating is now the slowest among all European countries for which data is available1. On the workforce, its research suggests the UK will need to add an extra 4,000 to 6,000 heat pump engineers every year from 2025 onwards1.
The submission also raises problems with Energy Performance Certificates, saying installing a heat pump can sometimes reduce a home's EPC rating and that EPCs do not involve any actual monitoring of energy consumption1. It notes planning restrictions such as the one metre distance from property boundaries, or restrictions in conservation areas and on listed buildings, and says the paperwork required for the installation of a heat pump is many times greater in volume and complexity compared to that associated with a gas boiler1. On consumer protection, it cites the Competition and Markets Authority as having highlighted a significant risk of misleading advertising on low carbon heating, especially around hydrogen boilers, but also heat pumps and electric heating1.
Why it matters for households
The submission sets out the terms on which household heating decisions are currently made. A confirmed phase-out date would give a fixed point for anyone replacing a boiler, while the indicative status of the 2035 date means no such certainty exists yet1. The gap between a heat pump at over £10,000 and a gas boiler at £2,000 to £4,000 is the upfront cost a household faces, and the proposed price ratio cap addresses running costs instead1. For homes not connected to the gas network, the choice is between oil, LPG and electric heating, and the evidence notes that air to water heat pumps are suitable in most detached and semi-detached houses, as well as many terraced houses, while heat networks or shared ground source heat pumps may be more effective in flats and denser areas1. The EPC point matters because ratings feed into regulation and financial decisions, and Nesta says they do a poor job of reflecting low-carbon heating sources1.
What happens next
The evidence was submitted to a parliamentary inquiry and published in August 20231. No government response to the specific recommendations is reported in the submission, and no timetable for confirming the 2035 date is given beyond Nesta's call for confirmation1.
Sources1 cited
- [](https://committees.parliament.uk/writtenevidence/123488/pdf/), committees.parliament.uk