Inside the UK’s Plan to Pump Up Its Military
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Diverging Reports Breakdown
Donald Trump ‘pushes UK to pump billions of pounds more into defence spending’ and reach 3% ‘ambition’ years earlier than PM had planned
Donald Trump ‘pushes UK to pump billions of pounds more into defence spending’ and reach 3% ‘ambition’ years earlier than PM had planned. PM pledged to increase defence spending to 2.5 per cent of GDP from 2027. But Pentagon chiefs have made it known that Mr Trump would be ‘happier’ if the UK reached 3 per cent by the end of this parliament in 2029. US official said Mr Trump’s administration does not believe the UK’s current planned increase in defence spending goes far enough. US President has previously demanded that NATO allies hike their defence budget to 5% of GDP. But, last year, none of them – including the US – spent five per cent on defence.
Donald Trump is reportedly pushing Britain to boost defence spending by billions of pounds over the coming years to set an example to other European nations.
The US President is said to want the UK to increase its military budget to 3 per cent of GDP by 2029, which is years earlier than Sir Keir Starmer had been planning.
In February, following Mr Trump’s return to the White House, the Prime Minister pledged to increase defence spending to 2.5 per cent of GDP from 2027.
Sir Keir also set an ‘ambition’ to spend 3 per cent of GDP on the country’s Armed Forces in the next parliament, as economic conditions allow.
But, according to The Times, Pentagon chiefs have made it known that Mr Trump would be ‘happier’ if the UK reached 3 per cent by the end of this parliament in 2029.
A senior US official told the newspaper that Mr Trump’s administration does not believe the UK’s current planned increase in defence spending goes far enough.
America has ‘sought the potential’ for reaching the higher figure in the present parliament, the official added.
The Office for Budget Responsibility has estimated that boosting defence spending to 3 per cent of GDP by the next parliament would cost an extra £17.3billion in 2029/30.
Donald Trump is reportedly pushing Britain to boost defence spending by billions of pounds over the coming years to set an example to other European nations
The US President is said to want the UK to increase its military budget to 3 per cent of GDP by 2029, which is years earlier than Sir Keir Starmer had been planning
A senior US official said that Mr Trump’s administration does not believe the UK’s current planned increase in defence spending goes far enough
In 2024/25, UK defence spending was around 2.3 per cent of GDP. The Government has forecast it will be spending an extra £6.4billion in 2027 to reach 2.5 per cent.
A Whitehall source said, while some members of the US government had raised the prospect of Britain reaching 3 per cent in this parliament, others were asking if the UK could go even higher in the longer term.
The source added there was not a ‘consistent’ view across the US administration and Mr Trump ‘hasn’t given his final expectations’.
The US President has previously demanded that NATO allies hike their defence spending to 5 per cent of GDP.
Since Russia’s invasion of Ukraine, there has been a marked increase in the number of NATO countries meeting the current 2 per cent target.
But, last year, none of them – including the US – spent five per cent of GDP on defence.
Poland was the biggest spender at 4.12 per cent of GDP, followed by Estonia (3.43 per cent), the US (3.38 per cent), and Latvia (3.15 per cent).
A Ministry of Defence spokeswoman said: ‘This Government is delivering for defence.
‘We have announced the biggest sustained increase in defence spending since the end of the Cold War.
‘This investment will make Britain stronger and safer in an insecure world and will help us build a modern and resilient armed forces, with cutting-edge capabilities.’
UK government plans to expand its Boiler Upgrade Scheme
UK government plans to expand its Boiler Upgrade Scheme. 4,028 applications to the BUS received in March 2025, up 88% on the same month last year. Up to 18,000 more home retrofitters to install heat pumps, insulation, solar panels and heat networks. New purchase and ownership models which could spread the cost of a heat pump over several years, or give households the opportunity to lease one for a monthly fee instead. New deal to support UK’s heat pump supply chain to support the UK”s heat Pump supply chain. The National Federation of Builders welcomed the announcement. The NFB has long advocated for such reforms, particularly for air-to-air heat pumps and electric heating technologies such as heat batteries, which are currently not eligible for grants under the scheme. The Government will consider new heat pump purchase options for consumers, for example hire purchase and leasing to make low-carbon heating more accessible.
The Department for Energy Security and Net Zero (DESNZ) has announced plans to expand the Boiler Upgrade Scheme (BUS) and invest in green skills as part of the UK Government’s Warm Homes Plan.
A new consultation has been launched as the government hopes to capitalise on increasing demand for heat pumps, with 4,028 applications to the BUS received in March 2025, up 88% on the same month last year.
Changes to the scheme could see families potentially access air-to-air heat pumps and electric heating technologies such as heat batteries, which are currently not eligible for grants under the scheme, alongside new purchase and ownership models which could spread the cost of a heat pump over several years, or give households the opportunity to lease one for a monthly fee instead.
The government has also set out plans to bolster the ‘clean power army’, training up to 18,000 more home retrofitters, to install heat pumps, insulation, solar panels and heat networks, alongside a major new deal to support the UK’s heat pump supply chain.
Minister for energy consumers Miatta Fahnbulleh said: “Our Warm Homes Plan will mean lower bills and warmer homes for millions of families – helping drive better living standards as part of the Plan for Change. Following a record-breaking month for applications to our Boiler Upgrade Scheme, we are now proposing to give working families more choice and flexibility to pick the low-carbon upgrades that work best for them.
“And on top of this, we are investing over £4 million in Copeland to continue building a homegrown heat pump industry and training up the army of skilled workers we need to achieve this.”
Charlotte Lee, CEO at the Heat Pump Association, said: “Following a record year for UK heat pump sales in 2024, we warmly welcome today’s announcements which will continue to support growth in the sector and increased deployment of clean heating.
“The additional funding to support those wishing to become qualified to install heat pumps and heat networks is especially welcome, alongside proposals to expand the Boiler Upgrade Scheme to make clean heating solutions an accessible option for more consumers.
Richard Beresford, chief executive of the National Federation of Builders, added: “The NFB has long advocated for such reforms, particularly for air-to-air heat pumps, to ensure we can remain technologically agnostic in our approach to the net zero transition. The announced considerations are a significant step towards that goal, and we commend the Government for listening to industry recommendations and taking meaningful action to support the net zero transition on existing homes.
“The proposed expansion of the scheme could involve the inclusion of more types of heat pumps, such as air-to-air heat pumps and electric heating technologies, e.g. heat batteries, which are currently ineligible for grants. Additionally, the Government will consider new heat pump purchase options for consumers, for example hire purchase and leasing to make low-carbon heating more accessible.”
Rico Wojtulewicz, head of policy for the NFB, said: “Air-to-air heat pumps dominate continental installs and so we always thought it strange that the Tory government decided to focus only on air-to-water systems. The new Labour government are seeking to rectify that error of judgement and have also sought views on heat batteries, another solution the NFB spent eighteen months lobbying to be included under the BUS.
“The benefits to existing homes are clear but if the consultation results in air to air and heat batteries being included in the BUS and even Clean Heat Market Mechanism (CHMM), there will be knock on benefit to the new build sector as the solutions they offer, for instance cooling and air quality, might inform out of date Building Regulations, thus ensuring the Future Homes Standard (FHS) is deliverable at scale.
“We must not always frame net zero as a carbon story. Electrification offers more efficiency, cleaner power, healthier homes and stimulates technological innovation, but it is impossible to deliver with one solution. We therefore hope this is the first step of many to have a net zero plan which is practicable and not led by ideologues.”
UK must tackle energy bills as firms face £24bn in extra costs – CBI
Almost 90% of British businesses have seen their energy bills rise over the past three years. Four in 10 firms are reducing investment as a result, according to the CBI. CBI is making a plea to the Government to remove policy costs from electricity bills, but it also wants it to focus on low-carbon energy to help achieve economic security. The CBI estimates the recent rise in national insurance contributions (NICs) and past three minimum wage hikes since 2023-24 is costing companies an extra £24 billion each year. The group says UK firms pay among the highest electricity bills in the world – 50% more than France or Germany.
Rain Newton-Smith, chief executive of the business group, will tell business leaders and politicians at the CBI’s business dinner on Thursday that sky-high energy costs are an “anchor on our ambition”.
At the event in London, she will call on the Government to come up with a “serious plan” to cut energy costs and invest in energy security to help make the UK and businesses more competitive.
The CBI said almost 90% of British businesses have seen their energy bills rise over the past three years, with a third seeing them rocket by more than 50%.
Four in 10 firms are reducing investment as a result, according to the group.
Higher energy bills come on top of significant increases in staff costs, with the CBI estimating the recent rise in national insurance contributions (NICs) and past three minimum wage hikes since 2023-24 is costing companies an extra £24 billion each year.
Ms Newton-Smith will say: “Business is now straining under £24 billion in extra costs per year.
“That’s more than the cost of Crossrail. More than the Home Office budget – on business, every year.”
She will add: “With costs running so high, there is one issue we absolutely must tackle.
“Without it, any industrial strategy, any serious plan for economic security will fall flat on its face. Energy.”
She will say the rising cost of energy “isn’t just a cost issue”.
“It’s a jobs issue. An investment issue. A security issue.
“Because how can UK business compete with one hand tied behind its back – and the other straining to keep the lights on?
“This is an anchor on our ambition. A crack in our economic security. And it must be fixed.”
Britain is becoming less competitive for business and industry due to expensive energy, with firms finding it “harder and harder to stay in the UK” when power is far cheaper abroad, according to the CBI.
Ms Newton-Smith will warn UK firms “pay among the highest electricity bills in the world – 50% more than France or Germany, four times more than the US and Canada”.
The CBI is making a plea to the Government to remove policy costs from electricity bills, but it also wants it to focus on low-carbon energy to help achieve economic security.
Its recent economic report showed the UK net zero economy grew 10% and supported 900,000 jobs.
What is the Mar-a-Lago Accord and could it explain Donald Trump’s tariff chaos?
Donald Trump’s ‘Liberation Day’ tariffs have caused chaos and sent world leaders scrambling. But some believe the tariffs are just the first step in a grand strategy to reshape global trade, boost US manufacturing, reduce the US budget deficit and make America’s allies pay for the US security umbrella. The plan is essentially to get other key economies to agree to pump up their own currencies and help devalue the US dollar. It’s never been confirmed by the Trump administration and is widely regarded by economists as a terrible idea that won’t work. But that doesn’t necessarily mean that Mr Trump isn’t going to try and make it happen. The Mar-A-Lago Accord references Mr Trump’s Florida resort Mar-a-Lago and the Plaza Accord of 1985 in which Germany, Japan, the UK and France agreed at New York’s Plaza Hotel to jointly devalue US dollar to boost America’s industrial performance. The accord was outlined among a range of options in an essay last year by economist Stephen Miran, who has since been appointed chairperson of the US Council of Economic Advisers.
According to the Trump administration, more than 70 countries are lining up to try and negotiate their way out of the new levies of up to 49 per cent — which have mostly now been “paused”.
“These countries are calling us up, kissing my ass,” the US president told a Republican event this week in Washington.
Many have pre-emptively offered to cut their tariffs on US imports and start buying more American exports.
But Mr Trump and his advisers may have a much bigger prize in mind.
Some believe the tariffs are just the first step in a grand strategy to reshape global trade, boost US manufacturing, reduce the US budget deficit and make America’s allies pay for the US security umbrella.
It’s being called the Mar-a-Lago Accord.
It’s never been confirmed by the Trump administration and is widely regarded by economists as a terrible idea that won’t work.
But that doesn’t necessarily mean that Mr Trump isn’t going to try and make it happen.
What is the Mar-a-Lago Accord?
The details are complicated and involve a lot of finance theory.
Put simply, the plan is essentially to get other key economies to agree to pump up their own currencies and help devalue the US dollar.
This would hopefully achieve the US administration’s stated goals of making goods produced in America more competitive and boost its manufacturing industry.
However, it would also make participants’ exports less competitive.
The accord was outlined among a range of options in an essay last year by economist Stephen Miran, who has since been appointed chairperson of the US Council of Economic Advisers.
Stephen Miran’s essay has been seen by some as a possible blueprint for Donald Trump’s economic plans. (Reuters: Annabelle Gordon/file)
In the paper, Mr Miran argues the “overvaluation” of the US dollar is the reason for America’s large trade deficit.
“Such overvaluation makes US exports less competitive, US imports cheaper, and handicaps American manufacturing,” Mr Miran wrote.
The Mar-A-Lago Accord references Mr Trump’s Florida resort Mar-a-Lago and the Plaza Accord of 1985 in which America’s allies Germany, Japan, the UK and France agreed at New York’s Plaza Hotel to jointly devalue the US dollar to boost America’s industrial performance.
Mr Miran wrote that important economies such as China’s and those in Europe would be less willing now to join a new accord, but tariffs could be a useful “stick”.
“President Trump views tariffs as generating negotiating leverage for making deals,” Mr Miran wrote.
” It is easier to imagine that after a series of punitive tariffs, trading partners like Europe and China become more receptive to some manner of currency accord in exchange for a reduction of tariffs. ”
He wrote that a currency accord with major economies could involve partner countries selling US dollar assets and swapping short-term US treasuries for century bonds.
US treasuries, or treasury bonds, pay interest over their term while century bonds don’t and are only returned with an increased value once they mature after 50 or 100 years.
This could help finance the staggering costs of America’s world-spanning military, he said.
China and EU retaliate against US tariffs as trade war escalates Photo shows close up of china president xi jinping in front of us flag Stock markets dropped following Beijing and the European Union’s announcement of new tariffs on US imports.
Mr Miran said that under a currency accord plan, both tariffs and the threat of the US withdrawing security guarantees from countries involved in the deal would be used to ensure compliance with it.
He suggested that US security, trade and finance are joined, and that there was interest in getting countries to pay for America’s security guarantees.
Mr Miran has described his paper as a “menu” of options, and said he wasn’t advocating any particular option.
When asked by Bloomberg last month if some kind of currency accord was in the works, Mr Miran said Mr Trump was “very clear that he wants to start with tariffs”.
“We are starting with tariffs,” he said.
“Could a [currency pact] be something that is entertained down the road? Sure it could. But right now the president is focused on tariffs.”
Donald Trump has hosted world leaders at Mar-a-Lago previously. (Reuters: Kevin Lamarque/file)
‘A new economic golden age’
Comments from Mr Trump’s team seem to hint it has something big planned.
Secretary of the Treasury Scott Bessent said during a Senate Finance Committee hearing in January that Mr Trump has a “generational opportunity to unleash a new economic golden age that will create more jobs, wealth and prosperity for all Americans”.
“We can usher in a new, more balanced era of prosperity that will lift up all Americans and rebuild communities and families across the country,” he added.
Peter Navarro, Mr Trump’s senior counsellor for trade and manufacturing, has made it clear that other countries offering to lower their tariffs will not be enough.
What is a tariff? A tariff is a tax on a product imported from another country
from another country It is paid to the government by the company that imports the product
that imports the product A tariff is generally calculated as a percentage of the price paid by the importer to the foreign seller
paid by the importer to the foreign seller Historically, tariffs have pushed up prices because higher product costs are often passed on to consumers
“They’re coming now and saying we want to talk, we’ll lower our tariffs to zero if you lower your tariffs,” he told Fox News this week. “That’s not the problem. Vietnam is a great example.”
“They sell us $15 for every one we sell them. Zero tariffs would get us no reduction in the $123 billion deficit we have.”
Despite this, not everyone is convinced there’s a strategy in the works.
David Henig, from the European Centre of International Political Economy, told the ABC there were a lot of people pushing their ideas for how the world economic system could change.
“None of them obviously to me have captured the attention of President Trump,” Mr Henig said.
Mr Henig said while it wasn’t impossible, it was hard to see the tariffs now “as a first step in some bigger strategy” toward a complex currency accord.
“I’m not sure there’s enough skill and analytical capacity in the current White House to pull this [currency accord] off,” he said.
“I think you would need some nifty footwork of the likes we haven’t really seen from this administration … to get to a point where countries want to do deals with you like the really sophisticated Plaza Accord.”
US Treasury Secretary Scott Bessent is now leading tarrif negotiations for the Trump administration. (ABC News: Bradley McLennan)
Why wouldn’t the Mar-a-Lago Accord work?
In an opinion piece for the Lowy Interpreter, former chief economist at the Department of Foreign Affairs and Trade Jenny Gordon wrote that the ideas outlined by Mr Miran were unlikely to deliver the reduced deficits and bring back the good jobs that were the primary motivation.
Dr Gordon said the logic was flawed for a number of reasons including that:
The US would need to borrow money to reinvest in its manufacturing sector, which would increase the value of the US dollar — the opposite of what the accord aims to do;
Changing consumer patterns, technology and aging populations had done as much, if not more than global trade, to drive well-paying jobs out of America’s industrial heartland; and
The plan would see countries move away from the US dollar as the reserve currency, and Mr Trump has said he doesn’t want that.
She concluded that countries were not likely to want to sign up to any deal because of Mr Trump’s conduct.
“Trump’s treatment of allies will hardly provide reassurance that complying with such an accord will buy stability. Even if quite a few countries do comply, it will not solve the US deficit problem,” she said.
Lord Daniel Hannan, president of the Initiative for Free Trade and a member of the UK House of Lords, told the ABC Mr Trump’s policy was “the most damaging policy and utterly needless”.
“It’s completely self-inflicted,” Lord Hannan said.
“If you did think that manufacturing deficits were a problem this is not how you would go about fixing it.
“It’s not possible to simultaneously to tackle the deficit problem and to keep a devalued US dollar as the world’s currency.”
He said countries around the world wouldn’t agree to things that weren’t in their economic interest because the US wanted them to.
” The people who are claiming that there is some clever nine-dimensional chess going on here are deluding themselves because they don’t want to face up to the banal reality that this is a needless policy that will impoverish people. ”
In his essay, Mr Miran said that the US needed to offer incentives for trading partners to come on board with the currency accord.
So far, Mr Trump has used tariffs only as a bargaining tool to reduce import levies on US goods abroad and raise revenue at home.
Donald Trump has remained defiant as his tariff policy has caused global market chaos. (Reuters: Kevin Lamarque)
Japan first to negotiate US tariffs
Among the first countries Mr Trump’s team has agreed to meet with is Japan.
The United States is Japan’s biggest export destination, with roughly 28 per cent of the total comprised of automobile shipments.
Mr Trump’s decision to slap a 25 per cent levy on auto imports, and a reciprocal 24 per cent tariff on other Japanese goods is expected to deal a huge blow to Japan’s economy.
Some analysts predict the higher duties could knock up to 0.8 percentage points off economic growth.
Japan also depends on the US military for protection.
Unusually, US Treasury Secretary Scott Bessent is leading the negotiating team, posting on X that the US would “work to enact the President’s vision for a new Golden Age of Global Trade”.
US breaks with reality on tariffs Photo shows Donald Trump wears a blue suit, white shirt and red tie holding a booklet showing off his signature to the camera The Australian government after May 3 will no doubt want to try to negotiate with the Trump administration about our 10 per cent tariff, but they might be better off to just work around it and move on.
Trade talks are usually led by the US trade representative.
Japan’s former top currency diplomat, Naoyuki Shinohara, told Reuters any US attempt to secure a coordinated depreciation of the US dollar through a 1985 Plaza Accord-type deal likely wouldn’t work, because it would require the consent of China and Europe.
Mr Shinohara said unlike the Plaza Accord, when the United States worked only with close allies, Washington would need to engage more countries — including the China and European Union — to weaken the dollar effectively in a globalised market.
“Currency intervention, even if coordinated among nations, has become less effective because markets have become so big,” he said.
He added that Mr Trump’s decision to impose levies on China and Europe would make it extremely difficult to gain their consent.
Both have responded with tariffs of their own, with the US and China involved in an escalating tit-for-tat battle.
“In times like now, you need China to be in the loop, as well as European nations. That would be quite hard under the current circumstances,” Mr Shinohara told Reuters in an interview.
ABC/wires
Families to get more choice over home upgrades
Working families to get greater choice on upgrades to their home’s heating. New products, such as air-to-air heat pumps and heat batteries, as well as offering new heat pump purchase options. Plan to build a ‘clean power army’ receives a boost, with up to 18,000 professionals to be trained to retrofit homes, and install heat pumps, solar panels and heat networks. Government invests £4.6 million in Copeland to manufacture more heat pump parts at home in the UK, supporting local jobs and boosting economic growth as part of the Plan for Change. Heat pumps can save families around £100 on their average energy bills when used with a smart tariff. The Boiler Upgrade Scheme, which offers up to £7,500 off the cost, enjoying its best month since opening, with 4,028 applications received in March 2025, up 88% on the same month last year. Ministers have issued a final call for tenants and landlords to make their views heard, with 3 days to go until the consultation on higher minimum energy efficiency standards closes.
plan to build a ‘clean power army’ receives a boost, with up to 18,000 professionals to be trained to retrofit homes, and install heat pumps, insulation, solar panels and heat networks
comes as government invests £4.6 million in Copeland to manufacture more heat pump parts at home in the UK, supporting local jobs and boosting economic growth as part of the Plan for Change
Homeowners are set to have more choice over ways to access heating systems and bring down costs under proposals being considered as part of the Warm Homes Plan – helping to deliver on the government’s milestone of higher living standards as part of the Plan for Change.
Demand for heat pumps is surging, with the Boiler Upgrade Scheme – which offers up to £7,500 off the cost, enjoying its best month since opening, with 4,028 applications received in March 2025, up 88% on the same month last year. Heat pumps can save families around £100 on their average energy bills when used with a smart tariff.
With more households wanting to make the upgrade to cleaner, homegrown energy, the government has today launched a new consultation on expanding the Boiler Upgrade Scheme to give families even greater choice to pick what works best for them.
Changes to the scheme could see families potentially access air-to-air heat pumps and electric heating technologies such as heat batteries, which are currently not eligible for grants under the scheme, alongside new purchase and ownership models which could spread the cost of a heat pump over several years, or give households the opportunity to lease one for a monthly fee instead.
As part of the government’s Plan for Change, even more households will be able to take up the offer of switching to low-carbon heating, while protecting the pounds in people’s pockets by making more options available.
The government has also set out plans to bolster the ‘clean power army’, training up to 18,000 more home retrofitters, to install heat pumps, insulation, solar panels and heat networks, alongside a major new deal to support the UK’s heat pump supply chain.
Minister for Energy Consumers Miatta Fahnbulleh said:
Our Warm Homes Plan will mean lower bills and warmer homes for millions of families – helping drive better living standards as part of the Plan for Change. Following a record-breaking month for applications to our Boiler Upgrade Scheme, we are now proposing to give working families more choice and flexibility to pick the low-carbon upgrades that work best for them. And on top of this, we are investing over £4 million in Copeland to continue building a homegrown heat pump industry and training up the army of skilled workers we need to achieve this.
Copeland in Northern Ireland have been awarded £4.6 million to expand their manufacturing for heating compression technology – a key component of heat pumps, which can help protect family finances from the roller coaster of international gas markets by running on clean electricity.
This investment, backed by a multi-million pound investment from Copeland, will help to support the industries and jobs of the future, while unlocking economic growth, as part of the Prime Minister’s Plan for Change.
Ministers have also unveiled plans to train up to 18,000 skilled workers to install heat pumps, fit solar panels, install insulation and work on heat networks through the extension of the Heat Training Grant and launch of the Warm Homes Skills Programme.
With 3 days to go until the government’s consultation on introducing higher minimum energy efficiency standards in private rented sector homes closes, ministers have issued a final call for tenants and landlords to make their views heard.
Under the proposals, all private landlords would be required to meet a higher standard of Energy Performance Certificate ( EPC ) C or equivalent in their properties – up from the current level of EPC E, by 2030.
This will deliver on the priorities of working people, in line with the Prime Minister’s Plan for Change, by requiring landlords to invest in measures such as loft insulation, cavity wall insulation or double glazing – ensuring homes are warmer and more affordable for tenants. Alongside higher standards & funding in the social rented sector, this could lift up to one million households out of fuel poverty by 2030.
Stakeholder reaction
Charlotte Lee, CEO at the Heat Pump Association said:
Following a record year for UK heat pump sales in 2024, we warmly welcome today’s announcements which will continue to support growth in the sector and increased deployment of clean heating. The additional funding to support those wishing to become qualified to install heat pumps and heat networks is especially welcome, alongside proposals to expand the Boiler Upgrade Scheme to make clean heating solutions an accessible option for more consumers.
Jambu Palaniappan, CEO at Checkatrade said:
We fully support this latest government investment in skills and training, and greater choice for homeowners. At Checkatrade, we’ve seen the growing importance of green energy to consumers, and with our new Green Hub are more easily connecting them with skilled tradespeople to make their homes more energy-efficient. The new funding is a key step towards empowering more people to enter the trade and a boost for the economy, helping to build long-term, sustainable careers for thousands across the UK.
Verity Davidge, Director of Policy and Public Affairs at Make UK said:
As we continue to transition to a low-carbon economy it is critical we have the people and skills needed to make it happen. Today’s announcement is a positive step towards ensuring the workforce is equipped with these skills. Many of those trained will develop the transferable skills needed to support industry in its own quest to transition to net zero.
Ned Hammond, Deputy Director (Customers) at Energy UK, said:
Expanding the Boiler Upgrade Scheme and giving families greater choice in the types of low-carbon heating systems available to them is a really positive move. More flexibility in the way customers can pay for these technologies will also help make efficient and smart heating systems, such as heat pumps, heat batteries and heat networks, available to even more customers who are struggling with high energy bills and looking for an alternative to costly gas boilers. The recent surge in demand for the Boiler Upgrade Scheme following the government’s funding uplift is a clear signal of consumer appetite and what can be done with the right support in place – and it’s vital this level of investment continues. Underpinning this is the need for a skilled and dedicated installer supply chain, so it’s fantastic to see government extending its support for skills and training as part of today’s announcement. The government’s figures show that 71% of installers benefitting from the Heat Training Grant said it made all the difference in their decision to upskill into heat pump systems. Extending the subsidy out to 2030 would help further with bringing in the thousands of new entrants we need into the heat pump and heat networks sectors.
Chris O’Shea, CEO of Centrica, said:
As the UK’s largest installer of low carbon heating technologies, we are delighted with the government’s proposals to expand the Boiler Upgrade Scheme to offer customers more choice on how to decarbonise their homes through greater financing, ownership and technology options. We can’t wait to add more to our Clean Power Army, the largest in the UK, using our award-winning academies and British Gas engineers to train installers across the UK.
Garry Felgate, Chief Executive of The MCS Foundation, said:
Consumer confidence in low-carbon technologies is growing, with more households installing heat pumps across the UK than ever before. Today’s announcements will help to accelerate that trend, by ensuring more people can access heat pump grants and supporting the growth of the heat pump workforce. These steps are very welcome news, enabling lower bills, lower carbon emissions, and sustainable jobs.
Sando Matic, Europe President for Copeland, said:
This investment marks a pivotal step in advancing clean energy solutions and driving economic growth. By expanding our manufacturing capabilities for heating solutions here in Northern Ireland, Copeland is proud to play a key role in helping to reduce reliance on fossil fuels and supporting the energy transition to more sustainable, electricity-powered heating.
Aadil Qureshi, CEO of Heat Geek, said:
Installers are the bedrock of this transition. They not only fulfil customer demand, but help guide and advise homeowners. More funding for programmes that deliver high quality training and good installation outcomes are essential for the future of this industry.
Greg Jackson CBE, Founder and CEO of Octopus Energy, said:
Britain has a huge opportunity to create thousands of good jobs as part of our energy transition. At Octopus, we’re playing our part by training 4,000 new low-carbon heating apprentices by 2030, but the industry needs thousands more if we’re going to reach our climate targets. It’s good to see backing for training that will get anyone, no matter if they’re school leavers or career changers, into these high-impact jobs.
Notes to editors
Options being considered to help spread the installation cost of a heat pump include:
hire purchase, giving households the option to pay for a heat pump in instalments, meaning they would own the equipment at the end of their contract
hire purchase plus, combining paying for a heat pump in instalments with a separate contract for an energy tariff, allowing providers to simplify costs into a single monthly payment
leasing, offering households the option to lease a heat pump for a set amount of time, like leasing a car. At the end of the contract, households would either enter into another agreement to continue leasing the heat pump, or would replace it
See the government’s consultation on expanding the Boiler Upgrade Scheme, which closes to responses on 11 June 2025:
Further information on the Heat Pump Investment Accelerator award to Copeland can be found here: Heat Pump Investment Accelerator Competition successful projects
The Warm Homes Skills Programme will deliver up to 9,000 training places across England, providing opportunities for people to develop skills in areas including fitting solar panels and installing insulation. More details can be found here: Warm Home Skills Programme.
An extra £5 million will be provided to continue the Heat Training Grant until March 2026, supporting a further 5,500 heat pump installers and 3,500 heat network professionals. The Grant has already trained over 10,650 individuals up to the end of March 2025. More details can be found here: Apply for the Heat Training Grant: discounted heat pump training.
More details on the Heat Training Grant: Heat Network training can be found here: Training providers: apply to offer the Heat Training Grant for heat networks
The government’s consultation on minimum energy efficiency standards for private rented sector homes can be found here: Improving the energy performance of privately rented homes: consultation document