The UK government's announcement this week on the introduction of the Warm Homes Plan brings in much needed reforms to help boost the take up of heat pumps.

At Nesta, we’re delighted to see progress on so many of the issues we’ve been campaigning for, but there’s still work to be done.

Here’s our breakdown of what’s changed, what it means, and what should come next.

Removal of the 1 metre rule

Until now heat pumps couldn’t be installed within 1 metre of a property boundary without planning approval - creating unnecessary delays and costs. Removing this rule will unlock many more potential sites for heat pumps, particularly in smaller homes with limited garden space.

Larger heat pumps allowed

Increasing the size limit for heat pumps from 0.6m3 to 1.5m3 means larger, and therefore quieter, models can be installed in a wider range of homes.

More flexibility for detached homes

Homeowners in detached properties will now be able to install two heat pumps instead of one, making it easier to meet the heating needs of larger homes.

Planning rules will now also accommodate air-to-air heat pumps, which not only provide low-carbon heating but can also deliver cooling – a dual function that will become increasingly valuable should summers grow hotter.

Support for air to air

Planning rules will now also accommodate air-to-air heat pumps, which not only provide low-carbon heating but can also deliver cooling – a dual function that will become increasingly valuable should summers grow hotter.

The government announcement also includes important measures to improve the standards for boilers (as well as other heating systems).

These updates build on work we have been doing such as the Money Saving Boiler Challenge, which helped households reduce gas consumption, and save on their bills, by lowering the flow temperature of their combi boilers.

The government’s proposed changes include:

Default low-temperature settings

By 2026, all combination boilers will be required to have a default low-temperature factory setting of 60°C. Operating at lower temperatures improves efficiency, reduces household energy bills, and cuts carbon emissions without sacrificing comfort

Open protocols for heating controls

From mid-2026, boiler manufacturers must ensure their products are compatible with third-party heating controls via open protocols. This will allow households to optimise efficiency and performance using advanced smart thermostats and controls, regardless of the boiler brand

Another important update is the launch of the Clean Heat Mechanism, a mandate requiring boiler manufacturers to deliver a number of certified heat pump installations in proportion to their annual boiler sales.

In the first year, manufacturers will need to achieve certified installations equal to 6% of their total boiler sales. Over that 12 month period , this should support around 90,000 heat pump installations (compared to 1.5 million boiler sales).

The Clean Heat Mechanism is valuable because it incentivises heating system manufacturers to play a bigger part in the roll out of heat pumps to householders. This could be by improving their offer to consumers or their relationship with installers or both.

While its launch is a positive step, the government made concessions to ease the transition, reducing fines for missed targets from £3,000 per heat pump to £500. This lower penalty may limit the mechanism’s immediate impact, but reflects the government's attempt to give manufacturers time to scale up production and supply chains.

There was also no detail on what the target for installations would be beyond the first year of the scheme, which misses the opportunity to give a clearer signal to the heating industry.

While these reforms represent significant progress, they're best seen as just a prelude to the full Warm Homes Plan rather than the complete package.

There's a lot more that needs to follow this announcement, including:

• Reforming levies on energy bills, to make electricity cheaper
• Providing access to affordable finance for low-carbon heating, either via government-backed loans or other work with the financial sector
• Providing clarity on the plan for phasing out fossil fuel heating by 2035
• Plans to upgrade delivery capacity in local areas, to plan and coordinate the switch to clean heating.

The full set of measures we think the UK government needs to take are set out in Nesta’s policy plan for clean heat.