Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the potential impact of reducing non-compliance fines in the Clean Heat Market Mechanism on the uptake of heat pumps.

The Government believes that the reduction to the payment-in-lieu for the Clean Heat Market Mechanism for the first baselining year will provide manufacturers with additional capacity to adapt to the scheme’s introduction, while still providing an incentive to invest in the transition. An impact assessment was published on 21 November 2024 alongside the draft statutory instrument. The government is confident that the targeted retrofit heat pump installations for the first scheme year can be achieved but will keep the payment-in-lieu level, like all scheme parameters, under review for future years.