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Heat Pumps May Increase Household Energy Bills by £95 Annually, Report Warns

A recent report raises concerns that eco-friendly heat pumps, central to Labour Energy Secretary Ed Miliband’s Net Zero initiative, could actually increase household energy bills by approximately £95 per year. While Mr. Miliband has championed heat pumps as a way to “save families hundreds of pounds a year on their bills,” new data suggests a different reality.

The report reveals that the average heat pump installed under the Government’s Net Zero scheme could cost a typical household around £1,736 annually to run. This figure exceeds the running costs of a conventional condensing gas boiler, estimated at £1,641 per year, by £95.

Shadow Energy Minister Andrew Bowie criticized the policy, stating, “Labour are addicted to making people’s lives more expensive. The country is facing an electricity price crisis largely caused by Ed Miliband’s policies. Without urgent action to reduce electricity bills, many households risk being burdened with ongoing high costs due to these taxpayer-funded schemes.”

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Industry experts echo this caution. Mike Foster, CEO of the heating trade body EUA, said, “With household finances already under pressure, ministers should not portray heat pumps as a guaranteed means to lower bills—particularly for low-income families. The energy transition must be affordable, practical, and inclusive of all energy sources to keep costs manageable; otherwise, public support for the net zero strategy may falter.”

In response, Energy Secretary Ed Miliband emphasized the government’s commitment to making clean energy accessible: “We recognize that clean energy can reduce bills. There is record demand for solar panels and heat pumps, and we want to extend this opportunity to everyone.”

He highlighted plans to lift one million people out of fuel poverty through grants for insulation and clean energy installations for low-income households, along with loans and subsidies to help more families adopt heat pumps. “This is three times the public investment compared to the previous government,” Miliband noted. “Successful reforming governments invest in building and upgrading homes. Labour governments have a track record of standing up for ordinary working people.”

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