Ed Miliband's heat pump push could leave households paying £95 more a year, Labour report warns

The Government is rolling out heat pumps through its £15billion Warm Homes Plan

Households could end up paying more to heat their homes under Labour's push to install heat pumps, despite promises they would cut energy bills.

A report by the Government's own fuel poverty committee found some households could face annual heating costs that are £95 higher than if they had kept a gas boiler.

The findings appear to contradict Energy Secretary Ed Miliband's claim that heat pumps would "save families hundreds of pounds a year on their bills."

According to the report, published this month, a typical heat pump installed through a recent Government Net Zero scheme would cost around £1,736 a year to run.

By comparison, a modern condensing gas boiler would cost an estimated £1,641 a year, making it around £95 cheaper to operate.

The Government is rolling out heat pumps through its £15billion Warm Homes Plan, which offers grants to encourage households to replace gas boilers.

Ministers have set a target of installing 450,000 heat pumps a year by the end of the decade.

However, the report also found performance can vary significantly.

A well-performing heat pump in a medium-use home would cost around £1,388 a year to run, making it cheaper than a gas boiler.

Yet households with underperforming or improperly configured units face bills of £1,971, representing an additional £583 burden compared to the best-performing models.

Shadow Energy Minister Andrew Bowie MP launched a scathing attack on the Government's approach, accusing Labour of being "addicted to making people's lives more expensive."

He identified electricity costs as the central issue, stating: "The biggest problem the country has when it comes to energy is that we are in an electricity price crisis of Ed Miliband's making."

The Conservative frontbencher warned that without urgent action to reduce power bills, publicly funded green initiatives would leave families burdened with substantial ongoing expenses.

"Unless the Government gets serious about cutting electricity bills now, many of these taxpayer-funded schemes will saddle households with high ongoing running costs every single year," he added.

Mike Foster, chief executive of heating industry trade body EUA, urged ministers to reconsider their messaging around the technology.

"At a time when household finances are stretched to breaking point, ministers should stop suggesting that heat pumps are a guaranteed route to lower bills especially for the poorest families," he said.

Mr Foster emphasised that the transition to cleaner energy "must be affordable, practical and use all sources of energy to keep bills in check otherwise consumers will reject the whole net zero agenda."

A Department for Energy and Net Zero spokesman defended the policy, pointing to "record demand" with over 100,000 units sold last year.

The Government maintained it was "taking decisive action to break the link between gas and electricity prices, to better protect households from energy crises."