Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department is taking steps to reduce the capital expenditure of heat pump delivery to ensure that the cost of retrofit measures, relative to household equity, reflect regional differences in (a) cost, (b) average household income of those regions and (c) the average annual temperature of those regions.

The Government is developing a comprehensive package of policies to meet our ambition for the UK to install 600,000 heat pumps per year by 2028. This is expected to support 40,000 direct jobs, with Valliant and Mitsubishi both recently announcing new manufacturing in the UK. The forthcoming Heat and Buildings Strategy will provide a clear direction-of-travel for industry to achieve the mass transition to low-carbon heat. We will do this with affordability and fairness at the front of our minds.

We recently launched the £350m Sustainable Warmth Competition, with Local Authorities across England able to apply. The Department for Business Energy and Industrial Strategy will review bids on a range of criteria designed to help those most in need, and I would encourage Members from across the house to work with their local areas to make the scheme a success.