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Up to £27,550 cost per household for heat pumps not a Labour Party future for low carbon home heating says GMB London

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GMB LONDON CALL ON  LABOUR PARTY TO STUDY POLICY IMPLICATIONS OF NEW OFFICIAL REPORT SHOWING HEAT PUMPS TO REPLACE GAS FOR HOME HEATING COSTS UP TO £27,350 PER HOUSEHOLD  

These huge costs, plus the additional costs of the expansion of electricity supply needed to run them, should drive the Labour Party to conclude that this is not the way to go for low carbon home heating says GMB London.


GMB London Region, the union for gas workers, called for the Labour Party under the leadership of Keir Starmer to study the policy implications of a new official report showing that the costs of heat pumps systems to replace gas boilers for home heating are up to £27,350 per household. 

The Department for Business, Energy and Industrial Strategy (BEIS) recently published a report, prepared for them by Delta-ee, which provides a detailed comparison of the full costs of installing different types of heating systems. 
See link to the BEIS report:  The Cost of Installing Heating Measures in Domestic Properties 

A Delta-ee Report for the Department for Business, Energy and Industrial Strategy, BEIS Research Paper Number: 2020/028 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/913508/cost-of-installing-heating-measures-in-domestic-properties.pdf

An analysis of the report by the recently formed Gas Users Organisation concluded as follows: 

“An 8kW air source heat pump (ASHP) fully installed including fittings, buffer tank, cylinder and controls, but excluding the heat distribution system would cost £ 8,750. In reality, it would be necessary to fit new radiators, and a 16kW ASHP fully including a heat distribution system would cost £21550.” 

“Ground Source heat pump systems cost more,  for example, a 12kW GSHP fully installed including buffer tank, cylinder, ground works, controls and the heat distribution (underfloor heating downstairs and radiators upstairs) system would cost £27350.” 

“Heat Pumps are a very efficient form of electric heat, but a report by Element Energy for the Westminster government concluded that, even if the costs of heat pumps fell considerably, their lifetime costs would always be higher for consumers than gas. There is also a question mark about the huge expansion of electricity capacity required and whether that would be sourced from renewables.” 

“This report clearly shows that Gas central heating is by far the cheaper option for households”. 
See notes to editors below for a recent press release from the Gas Users Organisation and contact details for them

Gary Pearce, GMB London Region Energy Officer said: 

“it is essential that the Labour Party under the new leadership of Keir Starmer study the policy implications of this new official government report on the costs per household of replacing gas for home heating with alternative systems using heat pumps and powered by electricity.
 

The costs of the heat pumps systems vary from £21,550 for air pumps and £27,350  ground source heat pumps.
 

These huge costs, plus the additional costs of the expansion of electricity supply needed to run them, should drive the Labour Party to conclude that this is not the way to go for low carbon home heating.” 
 

GMB London consider that existing central heating systems should be maintained and powered by natural gas until such time as it can be replaced by zero carbon hydrogen at reasonable prices. This GMB London view has been endorsed by GMB Congress.  

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BDC 316 : May 2024