PHAM NEWS | NOVEMBER 2026 8 News Review


Electricity prices hit heat pump growth


The cost of electricity needs to fall relative to gas if the UK is to encourage more households and businesses to switch to heat pumps, according to Energy UK. A new report, Sparking


Change: How to make clean heat cheaper and accelerate electrification, estimates that narrowing the price difference could lead to at least 250,000 additional domestic heat pump installations by 2030. Known as the spark gap, the ratio between electricity


and gas prices stood at about 4:1 in the year to July 2026, before rising wholesale gas prices began to distort the comparison. Energy UK argues that


policy costs added to electricity bills are contributing to the imbalance, making heat pumps less financially attractive despite their greater efficiency compared with gas boilers.


The organisation wants the


government to set a target of reducing the household spark gap to 3:1 by 2030, with a longer-term ambition of 2.5:1. Among its proposals is


removing remaining policy costs from electricity bills and transferring them to general taxation or a separate financing mechanism. Energy


UK estimates that reaching a 3:1 ratio could save a medium- sized dual-fuel household about £40 a year on its energy bills. For a household with a heat pump, the saving could rise to £300. The report also highlights the impact of electricity prices on businesses, which face some of the highest industrial electricity costs in the G7. It estimates that


the non-domestic spark gap


currently ranges from 4.2:1 to 4.5:1, depending on the size and type of business. By 2029/30, it expects this to fall only slightly, to between 3.9:1 and 4.3:1. Energy UK says this would be insufficient to encourage businesses to replace gas heating with electric alternatives. For businesses, it recommends removing Renewables Obligation and Feed-in Tariff costs from electricity bills, as well as reforming the Climate Change Levy. It also proposes a Business Energy Upgrade scheme for small and medium-sized enterprises, alongside targeted electricity price discounts to encourage larger companies to invest in low-carbon heating.


Rising costs are delaying upgrades


Two-thirds of UK homeowners have delayed renovation work because of rising costs, with heating and energy-efficiency upgrades among the projects being put off, a survey has found. The UK Home Improve-


ments Report 2026, commissioned by Evolution Money and based on a survey of 2,000 homeowners, found that 67% had postponed improvements because they could not afford them. However, 75% said they would consider work designed to reduce energy bills. Heating and cooling


upgrades had been delayed by 22% of respondents, while the average reported cost of this work was £5,050. Bathrooms were the


most frequently postponed projects, followed by kitchens and windows and doors. The survey also found that


75% of homeowners had less than £10,000 saved for improvements, despite the most commonly reported budget for a major renovation being £20,000 to £40,000. Only 34% had a dedicated fund for home improvements. Financial pressures may


also be encouraging some homeowners to take on work themselves. More than a quarter (28%) said they would consider carrying out complex projects, including electrical or structural


alterations, rather than hiring a professional. Despite the costs, 61% said they were more likely to improve their existing home than move in the next five years. A preference for their current home and neighbourhood was the main reason, while moving costs and the stress of relocating also influenced decisions. Evolution Money’s lending data showed that the average approved home improvement loan rose from £9,527 in 2016 to £21,005 in 2025. The number of approved home improvement loans also more than doubled since 2021.


Marking 90 years in ventilation


Ventilation manufacturer Vent-Axia has marked its 90th anniversary by planting an oak tree at Crawter’s Brook People’s Park in Crawley, close to its headquarters. It also funded additional planting at the park to support biodiversity, working with the Manor Royal Business Improvement District. The ceremony last month was attended by the Mayor of Crawley, Councillor Marion Ayling, Crawley MP Peter Lamb and the Vice Lord-Lieutenant of West Sussex, John Barclay. Founded in 1936 by Joe Akester,


inventor of the world’s first electrically operated window fan, the company has a long history of British manufacturing. MD Graham Sanders says: “We are very proud of our British manufacturing heritage, and it is particularly fitting to mark this milestone by supporting a project that will benefit the local environment and community.”


Excess admin hinders diversification


administration, with 28% spending three hours or more. In response, Glow-


worm has launched its Grow with Glow MCS Partner Programme, connecting installers with MCS-accredited partners to support compliant heat pump installations without requiring them to manage accreditation and certification themselves. The programme includes


A lack of time for training and paperwork is preventing some heating installers from moving into heat pump installations, according to research commissioned by Glow- worm.


A survey of more than


275 installers found that 66% wanted to learn more about heat pumps, but 23% said they lacked the time to develop their skills. Nearly three-quarters (73%) spent at least two hours a day on


free training, technical guidance, system designs and heat loss calculations, as well as commissioning and documentation support. It also offers help with eligible Boiler Upgrade Scheme applications. ◼ phamnews.co.uk/1126/05


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