A new report from the Institute for Public Policy Research (IPPR) says the UK must realise the ‘huge potential’ in heat pump manufacturing as part of the transition to clean home heating. The report outlines that with the phasing out of gas boilers, approximately 6,000 manufacturing jobs could be at risk unless a new industrial strategy is implemented.

Currently, the UK is a leader in boiler manufacturing but lags behind other European nations in heat pump production. The report argues that the government’s promised green industrial strategy should use the UK’s existing capabilities to seize opportunities in heat pump manufacturing.

The 2035 ban on the sale of boilers is essential for the UK to reach its commitments to be carbon neutral by 2050, the report says. The country needs to install at least five million heat pumps over the course of the next parliament, and at least 19 million by 2050. But the UK is still disproportionately installing more boilers than heat pumps – for every heat pump sold in the UK, 29 gas boilers are being sold.

As boiler and heat pump manufacturing share common skills and equipment, boiler manufacturers can diversify into heat pump production relatively easily and with low capital investment. Coupled with a large untapped domestic market, this makes the UK well placed to transition and specialise in heat pump manufacturing.

Research finds that regions like the Midlands, the Northeast and Scotland stand to benefit the most from the growth of heat pump manufacturing.

IPPR is calling for a more ambitious, consistent and long-term industrial strategy, with a comprehensive approach, focusing on:

•   Boosting domestic demand for heat pumps with more generous subsidies schemes and low-cost financing to reduce installation costs
•   Taking temporary measures like lower tariffs for heat pumps users to maximise the reduction of energy bills for heat pump adopters.
•   Using public financing instruments, such as the newly established National Wealth Fund, to support the transition of boiler manufacturers into producing heat pumps on a large scale.

“The UK stands out in Europe for its large gas boiler market and its related manufacturing base,” says Simone Gasperin, IPPR associate fellow. “However, with gas boilers being phased out to meet net zero targets, this dominance is nearing its end. Despite this, the huge potential of an untapped market for heat pumps, combined with existing capabilities in heating and cooling manufacturing, places the UK in a strategic position to achieve a just transition. This shift could drive economic growth, protect skilled jobs, and achieve climate goals – but only with a coherent industrial strategy that aligns demand pulls with targeted business support measures.”

Russell Dean, deputy divisional manager of living environment systems at Mitsubishi Electric, adds: “Encouraging the adoption of renewable alternatives such as heat pumps is a necessity if we are to get the UK to net zero by 2050. The universal uptake of heat pumps has the potential to drive economic benefits too – which this report details comprehensively.

“We’ve seen that prevailing myths around the cost of heat pumps as well as a fundamental lack of awareness about the benefits of the technology in the UK is stifling demand. A stable and long-term heat pump strategy – as laid out in the report – coupled with a campaign to overcome these barriers will offer the new government a golden opportunity to unlock the economic and environmental benefits of this technology.”

Read the IPPR paper The Heatwave: Unlocking the potential of heat pump manufacturing by Simone Gasperin, Pranesh Narayanan and Joshua Emden here: https://www.ippr.org/articles/the-heatwave

Image credit: Bosch