Government must level the playing field for the clean heat industry – or risk leaving UK homes out in the cold

When visiting the Luthmore factory in Chippenham recently, I was struck by how simple and practical low-carbon heating can be. Here was a zero emission alternative to the gas combi: compact, quick to install, and designed to fit seamlessly into the lives of British households. Providing low-carbon domestic heating and hot water in one easy switch, it's the kind of homegrown innovation that could make warm, green homes a reality. 

Decarbonising homes is one of the UK's toughest challenges in the transition to net zero. Heating makes up around a fifth of the UK's emissions, and we Liberal Democrats have pledged to tackle it head-on through a 10-year emergency upgrade programme and harnessing new technologies, like the Luthmore boiler, that help consumers use their energy more flexibly. 

The government is rightly making home decarbonisation a priority. The Boiler Upgrade Scheme, which supports the installation of heat pumps and biomass boilers, is a key component of the flagship Warm Homes Plan, which promises to bring the benefits of clean heat directly into our homes, with up to 300,000 set to benefit from upgrades in the next year. 

But there's a problem. Its limited focus on heat pumps to date is undermining consumer choice, stifling innovation, and leaving too many households out in the cold. Heat pumps are a fantastic technology, but they aren't right for every dwelling, especially smaller properties with limited indoor and outdoor space. Families in those homes deserve options too.

That's why technologies like the Luthmore boiler are so important. Installed in half a day, fitting exactly where a gas combi was with no need for a separate hot water tank, and operating just like a traditional combi but with zero emissions - it's the straightforward route to delivering low-carbon homes at scale. And yet, solutions like this aren't currently eligible for government support like VAT exemption or grant funding. 

The answer is clear: the government must take a fair, technology agnostic approach to clean heat. Low-carbon, flexible technologies like Luthmore should be included in schemes alongside heat pumps and given equal importance in the forthcoming Warm Homes Plan to ensure that each household has equitable access to a solution that suits them. 

This isn't just about fairness for families - it's about unlocking growth in a burgeoning British industry. The government should also act to decouple the link between electricity and gas and embark on ambitious levy reform to reduce electricity bills, incentivise low-carbon heating, drive investment in our growing clean heat sector, and help innovative businesses like Luthmore to thrive. 

We Liberal Democrats have promised to halve household energy bills by 2035 - a goal that depends on reducing reliance on imported gas and embracing renewable power. To get there, we need a diverse mix of clean heat technologies that can cut running costs and store excess renewables, so nothing goes to waste.

The clock is ticking. We need to move quickly to scale new technologies if we are serious about cutting emissions, protecting the environment, and saving households money. That means backing British innovation, legislating to bring new technologies into the mainstream, and creating a policy environment that works for people and planet. Low-carbon heating is not a luxury, it's a cornerstone of a fairer, greener, more secure energy future.

Wera Hobhouse is the Liberal Democrat MP for Bath and a member of the Energy Security and Net Zero Select Committee.