Consumer watchdog urges Government to tackle barriers to heat pumps and EVs

The Government must do more to tackle cost and other barriers discouraging consumers from switching to heat pumps and electric vehicles, Which? has said.

The consumer watchdog’s annual survey, now in its third year, tracks shoppers’ attitudes towards sustainability.

Respondents identified a range of deterrents putting them off greener home heating and cars – such as cost, low awareness, insufficient information and concerns about availability and reliability.

Which? said 71% who knew what heat pumps were said they were too expensive for them to install – a figure that has remained static despite the Government significantly increasing the grant available through the Boiler Upgrade Scheme in 2023.

While the cost of installing heat pumps varies, the median price for installing an air source heat pump is just under £13,000, according to data collected from installers under the Government’s Boiler Upgrade Scheme (BUS).

With a grant, the overall cost can be reduced by £7,500 to £5,500.

But the average cost of installing a standard combi-boiler is £2,597, based on all models on Which?’s website.

Which? also found ownership and awareness of heat pumps remains relatively low, with just 2% of homeowners owning a heat pump and just over half (55%) aware of what they are.

Of those, 54% said that they would not consider installing one.

In terms of EVs, the number of people who own one increased from 3% in June 2022 to 6% in June this year, Which? found.

But the number of drivers saying they are unwilling to buy one has almost doubled from one in five (20%) in 2022 to two in five (39%) now, it said.

The survey found around two-thirds (64%) of non-EV drivers said high prices would stop them from buying one.

According to Which?’s pricing data and based on the models the consumer champion has tested, the average new EV is £47,251.19 – almost £10,000 more than a non-electric equivalent (£37,611.32) in October 2024.

But prices of new and second hand EVs are falling, with some second hand EVs now reaching price parity with petrol and diesel equivalents, it said.

The research also found 54% are concerned about the distance that can be covered in a single charge, while a similar proportion (52%) are worried about the availability of public charge points.

In the recent Budget, the Government allocated £3.4 billion to the Warm Homes Plan, including £1.8 billion to support fuel poverty schemes, describing this as an “initial” commitment and introduced tax incentives to encourage people to buy EVs.

But Which? is now calling on ministers to ensure the Warm Homes Plan includes measures that support consumers with the high upfront costs of installing a heat pump, through new financial products that make the transition more affordable as well as direct support for low income families.

It is also urging the UK and devolved governments to provide clear and consistent support for the transition to EVs.

This includes measures like monitoring consumer experience of public charge points, supporting the rollout of chargepoint infrastructure, ensuring access for disabled drivers, and promoting tariffs that make it cheaper to charge your car overnight and when electricity demand is low.

Sue Davies, Which? head of consumer rights and food policy, said: “There are encouraging signs in this year’s Which? sustainability tracker, such as a slight increase in ownership of electric vehicles and an appetite among younger homeowners to switch to heat pumps.

“However, it’s clear that there is work to be done to address the barriers preventing consumers from switching to the more sustainable alternatives that will help the UK achieve its net zero goals.

“As well as cost, these include low awareness and insufficient information about heat pumps and a lack of availability and reliability of EV charging stations.”

Published: 08/11/2024 by Radio NewsHub