UK ministers consider cutting heat pump subsidies to fund defence

UK ministers are reportedly preparing to reduce subsidies for heat pumps to help fund increased defence spending. Energy Secretary Miatta Fahnbulleh has been tasked with identifying over £2bn in savings from her budget to support a defence investment plan established by the previous government.

Sources indicate that a portion of these savings will be drawn from the Boiler Upgrade Scheme (BUS) in England and Wales. While the programme will not be eliminated, hundreds of millions of pounds are expected to be cut from its £2.7bn budget. The scheme currently provides grants of up to £9,000 to assist households in transitioning to cleaner heating methods.

Experts have expressed concerns regarding the impact of shifting climate policies. Jan Rosenow of the University of Oxford noted that fossil fuel-reliant housing creates long-term liabilities and investor uncertainty. Meanwhile, Paul Dorfman of the Nuclear Consulting Group argued that resources should be directed toward renewables, storage, and grid efficiency rather than new nuclear projects.