PHAM NEWS | FEBRUARY 2026 12 Merchant & Distributor News Industry viewpoint


Much needed certainty for the heating industry


The long-awaited launch of the government’s Warm Homes Plan brings clarity and certainty about the future direction of home heating in the UK, as Stewart Clements, director of the Heating and Hotwater Industry Council (HHIC), explains.


Positive sales fi gures for October


The latest fi gures from the Plumbing & Heating Merchant Index (PHMI) report show total value sales through specialist plumbing and heating merchants were up +0.8% in October 2025 compared to the same month the previous year. Volume sales decreased -2.1% while prices increased +2.9% year-on-year. With one extra trading day in October, month-on-month like-for-like


value


sales were +5.8% higher than September. Total value sales, which don’t take the diff erence in trading days into account, were +10.6% higher in October, compared to the previous month. Unadjusted volume sales were +7.7% higher, and prices were up +2.7%. Total value sales in the three-month


period from August to October 2025 were +1.7% higher than the same period the year before. Total volume sales were down -2.4% and prices rose +4.2%. There was no diff erence in trading days.


Like-for-like value sales in the three months August to October 2025 increased +7.2% compared to the previous three-months, May to July 2025. Without the adjustment for the extra trading day in the most recent three- month period, total value sales were +8.9% ahead of the previous three months. Total volume sales were +3.8% higher, while prices rose +4.9%. Mike Rigby, MD of MRA Research which produces the PHMI report, questions whether the recent growth can be sustained: “It’s taking longer than expected for housebuilding


to respond to government aspirations to build 300,000 homes a year. Planning reforms, supposed to unlock the constraints on developers to deliver more homes, have hit the buff ers again. “Unless the government can get its own


house in order, and quickly, progress in removing planning red tape is going to be stifl ed, and that’s not good for construction or the building materials supply chain.”


Recycling promotion


Plumbers can now turn waste plastic into rewards thanks to a new nationwide recycling initiative from Plumb Centre and Polypipe. Customers can simply save their waste plastic and drop it off at Plumb Centre branches to be rewarded with a £5 Greggs voucher on the first deposit, with more rewards available the more they participate. Installers need simply to scan the QR code on the counter to log the drop-off and receive a digital voucher. The fi rst time a customer brings their waste in, they’ll receive 200 rewards points – enough to exchange for a £5 voucher. Each subsequent deposit will earn 50 points which can be saved towards more rewards. There are waste plastic collection points in over 400 Plumb Centre branches and all kinds of plastic will be accepted, excluding anything which has been in contact with chemicals or other hazardous materials, human waste, food waste, concrete dust or brick dust. Pipe off cuts must be less than 0.5m in length so they will fi t in the bag without the need for cutting down in branch.


Meeting demand for renewables


Wolseley Group has announced the opening of a second specialist fulfi lment centre to support customers delivering large and complex renewables projects. The company says that the investment forms part of its long-term strategy to strengthen its renewables proposition and ensure the business is well positioned to support the accelerating transition to low-carbon heating across the UK. Located in Darlington, the new


fulfi lment centre builds on the success of the Measham Fulfi lment Centre, which was announced in September last year. Together, the two sites form part of a strategy designed to expand specialist capacity, improve resilience across the supply chain and provide support for customers working with more complex


products such as air source heat pumps. Wolseley Group CEO Patrick Berard says: “This is a long-term investment in our infrastructure and our customers, ensuring we are ready to support growth in low-carbon technologies and deliver what customers need, when they need it.”


2030. It will deliver a wide range of measures including insulation, solar technologies, clean heating systems and smart controls. Importantly, the Plan combines targeted support for low-income households with a universal off er that allows all homeowners to upgrade their homes when it suits them, using technologies that are appropriate for their circumstances. From HHIC’s perspective, this


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balanced approach is critical. The heating industry has been operating in a prolonged period of uncertainty, with shifting policy signals, changing targets and limited long-term visibility. That uncertainty has made it diffi cult for manufacturers and installers to plan investment, develop new products, expand facilities or commit to large-scale skills programmes. The Warm Homes Plan begins to address this by setting out a clear, long-term framework and confi rming that home upgrades are a central pillar of national energy policy. The Plan’s strong focus on lower-


income households is particularly welcome. Millions of families continue to live in cold, ineffi cient homes and face unacceptably high energy costs. By prioritising fully funded upgrades for those in fuel poverty, including insulation and clean energy technologies, the government is taking meaningful action to ensure that the benefi ts of the energy transition are shared fairly. Warmer homes, lower bills and improved health outcomes should not be a privilege – they should be a basic standard for everyone.


Confi dence boost At the same time, the Plan will hopefully provide much-needed confi dence for the market. The introduction of government-backed low and zero interest loans for technologies such as solar panels, batteries and heat pumps, alongside continued grant support, will help unlock demand across all income groups. This is essential if we are to move beyond stop-start schemes and create a stable, self-sustaining market for low-carbon and high-effi ciency heating solutions. Certainty also extends to the supply


chain. The government’s commitment to creating around 180,000 new jobs in energy effi ciency and clean heating by 2030, and its ambition for at least 70% of heat pumps installed in the UK to be manufactured in the UK, sends a powerful signal to industry. It demonstrates that the transition to cleaner heating is not just an environmental imperative, but also an industrial opportunity that can support


ccording to the UK government, the £15 billion Warm Homes Plan aims to support up to fi ve million households by


Stewart Clements HHIC director


UK manufacturing, innovation and skilled employment. For HHIC members, this provides a


much stronger basis for future planning. Manufacturers can invest with greater confi dence in product development, factory capacity and UK-based production. For training providers, it means they can expand their skills programmes and for installers it means there will be a continuing demand for their services.


Coordinated approach The creation of a new Warm Homes Agency also has the potential to transform the consumer experience. A more streamlined and coordinated approach to advice, funding and installation should make it easier for households to navigate what has historically been a complex and fragmented system. For industry, this should help raise standards, reduce duplication and improve confi dence in the quality of installations. Of course, in order to deliver this


ambitious programme eff ectively, clear communication and close collaboration with the industry will be key. HHIC and its members will work with government, regulators and other stakeholders to ensure the Plan succeeds in practice as well as on paper. Ongoing engagement will be essential to address the challenges, from workforce capacity and skills to consumer awareness and supply chain resilience. It is also important that collaboration


across the sector continues to strengthen. Working with organisations such as the newly launched HPA UK and other industry bodies will be vital in sharing expertise and presenting a coherent voice. The Warm Homes Plan should help


to ensure that households benefi t from warmer homes, lower bills and a smoother transition to the heating systems of the future. The heating and hot water industry will play a central role in delivering it, and for HHIC members, this new sense of direction off ers the confi dence to invest, innovate and grow. ◼www.hhic.org.uk


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