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Households will be able to apply for a £5,000 grant to swap their gas boiler for a low-carbon heat pump, as part of government plans to cut emissions.

The government announced that the £450m Boiler Upgrade Scheme, which is part of the more than £3.9bn funding to cut carbon from heating and buildings, will be used to help it reach its target for all new heating system installations to be low carbon by 2035.

However, the government insisted families will not be forced to remove their existing fossil fuel boilers.

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Can Britain have zero carbon electricity?

Ministers said that switching to low carbon heating will cut emissions and reduce the UK’s dependency on fossil fuels, as well as its exposure to global price spikes in gas. It will also support up to 240,000 jobs across the country by 2035, they added.

The scheme will encourage people to install low carbon heating systems such as heat pumps, which run on electricity and extract energy from the air or ground.

The £3.9bn funding will be used to cut carbon from heating and buildings, including by making social housing more energy efficient and cosier, as well as reducing emissions from public buildings, over the next three years.

The £5,000 grants will be available from April and will mean people installing a heat pump will pay a similar amount to those installing traditional gas boilers, according to the plans.

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The grants for heat pumps will be available for households in England and Wales, as part of the UK-wide heat and buildings strategy.

Heat pumps currently cost an average £10,000 to install and do not necessarily deliver savings on running costs despite being much more efficient than gas, because green levies are higher on electricity than on gas.

The government said its plans would help people install low-carbon heating systems in a simple, fair and cheap way as they replace their old boilers over the next decade.

It said it would work with industry to make heat pumps the same cost to buy and run as fossil fuel units by 2030.

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Prime Minister Boris Johnson said: “As we clean up the way we heat our homes over the next decade, we are backing our brilliant innovators to make clean technology like heat pumps as cheap to buy and run as gas boilers – supporting thousands of green jobs.

“Our new grants will help homeowners make the switch sooner, without costing them extra, so that going green is the better choice when their boiler needs an upgrade.”

Business and Energy Secretary Kwasi Kwarteng added: “Recent volatile global gas prices have highlighted the need to double down on our efforts to reduce Britain’s reliance on fossil fuels and move away from gas boilers over the coming decade to protect consumers in long term.

“As the technology improves and costs plummet over the next decade, we expect low carbon heating systems will become the obvious, affordable choice for consumers.”

Greg Jackson, chief executive and founder of Octopus Energy, said that when the grant scheme launches, his company will install heat pumps at about the same cost as gas boilers.

“Electric heat pumps are more efficient, safer and cleaner than gas boilers and can help make homes more comfortable with less energy,” he said.

“Today we’ve crossed a massive milestone in our fight against climate change and to reduce Britain’s reliance on expensive, dirty gas.”

Labour’s shadow business secretary, Ed Miliband, said: “As millions of families face an energy and cost of living crisis, this is a meagre, unambitious and wholly inadequate response.

“Families up and down the country desperately needed Labour’s 10-year plan investing £6bn-a-year for home insulation and zero carbon heating to cut bills by £400 per-year, improve our energy security, create jobs and reduce carbon emissions.

“People can’t warm their homes with yet more of Boris Johnson’s hot air but that is all that is on offer.”

Analysis by Tom Clarke, science and technology editor

A fair, affordable and deliverable plan to wean Britain’s homes off fossil fuels is one of the toughest parts of the government’s net-zero plans.

Levies on energy bills have been a fairly straightforward way of subsidising clean forms of generating electricity – the method used to phase out coal power and replace it with offshore wind for example.

But how do you go about performing a similar trick in persuading the owners of 29 million gas boilers to switch to something else?

Especially when that something else costs 10 times more to buy, and would currently cost significantly more to run?

That’s the challenge of moving away from gas and towards electric-powered heat pumps. And one the Heat and Buildings Strategy has tried to address.

The plan has been delayed by more than a year; partly because of the amount of wrangling between energy secretary Kwasi Kwarteng and Chancellor Rishi Sunak about how to make it work.

But the result, according to most experts I’ve spoken to, is not a bad start.

The plan has sufficient money to help homeowners purchase about 30,000 new air source heat pumps a year for three years.

Nowhere near enough to fix the climate crisis (we need more like 450,000 by 2025 according to the Committee on Climate Change), but it is seen by many as a good start.

It should help generate the economies of scale needed to drive down the costs of the devices to drive up demand.

The strategy also doesn’t ignore the basic physics of electric heat pumps compared to boilers.

Heat pumps are only affordable if they run at lower temperatures than gas boilers (50C vs 70C) and that means to warm a home with a heat pump you need a well-insulated, draft-free house.

The plan boosts funding for improving things like insulation in social housing and for those in fuel poverty.

Again, by nothing nearly enough to meet a net-zero target, but most experts say they couldn’t have expected much more given the current pressures on public spending.

But important details are missing. There’s little support at all for homeowners or private landlords to improve the homes’ energy efficiency.

And there’s not much evidence of support for local authorities who manage the bulk of social housing – much of which is in greatest need of improvement.

Another important, and much trailed element of the strategy is reform of electricity pricing to encourage homeowners to make the switch from gas to electric heat pumps.

Right now gas is significantly cheaper than electricity.

It was expected that the strategy would remove levies from electricity, to make things like heat pumps cheaper to run, and therefore more attractive.

Instead, the government has decided to consult on this with a decision next year.

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SEC Chair calls tokenization an ‘innovation’ in sign of regulatory shift

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<div>SEC Chair calls tokenization an 'innovation' in sign of regulatory shift</div>

<div>SEC Chair calls tokenization an 'innovation' in sign of regulatory shift</div>

In a media interview, Chair Paul Atkins pledged to empower businesses to innovate through tokenization.

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Just 25% of public think Sir Keir Starmer will win next election – with welfare row partly to blame

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Just 25% of public think Sir Keir Starmer will win next election - with welfare row partly to blame

Only a quarter of British adults think Sir Keir Starmer will win the next general election, as the party’s climbdown over welfare cuts affects its standing with the public.

A fresh poll by Ipsos, shared with Sky News, also found 63% do not feel confident the government is running the country competently, similar to levels scored by previous Conservative administrations under Boris Johnson and Rishi Sunak in July 2022 and February 2023, respectively.

Politics latest: ‘A moment of intense peril’ for PM

The survey of 1,080 adults aged 18-75 across Great Britain was conducted online between 27 and 30 June 2025, when Labour began making the first of its concessions, suggesting the party’s turmoil over its own benefits overhaul is partly to blame.

The prime minister was forced into an embarrassing climbdown on Tuesday night over his plans to slash welfare spending, after it became apparent he was in danger of losing the vote owing to a rebellion among his own MPs.

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Govt makes last-minute concession on welfare bill

The bill that was put to MPs for a vote was so watered down that the most controversial element – to tighten the eligibility criteria for personal independence payments (PIP) – was put on hold, pending a review into the assessment process by minister Stephen Timms that is due to report back in the autumn.

The government was forced into a U-turn after Labour MPs signalled publicly and privately that the previous concession made at the weekend to protect existing claimants from the new rules would not be enough.

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While the bill passed its first parliamentary hurdle last night, with a majority of 75, 49 Labour MPs still voted against it – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.

It left MPs to vote on only one element of the original plan – the cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

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Govt makes last-minute concession on welfare bill

An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.

The incident has raised questions about Sir Keir’s authority just a year after the general election delivered him the first Labour landslide victory in decades.

Read more:
How did your MP vote on Labour’s welfare bill?
The PM faced down his party on welfare and lost

And on Wednesday, Downing Street insisted Rachel Reeves, the chancellor, was “not going anywhere” after her tearful appearance in the House of Commons during prime minister’s questions sparked speculation about her political future.

The Ipsos poll also found that two-thirds of British adults are not confident Labour has the right plans to change the way the benefits system works in the UK, including nearly half of 2024 Labour voters.

Keiran Pedley, director of UK Politics at Ipsos, said: “Labour rows over welfare reform haven’t just harmed the public’s view on whether they can make the right changes in that policy area, they are raising wider questions about their ability to govern too.

“The public is starting to doubt Labour’s ability to govern competently and seriously at the same levels they did with Boris Johnson and Rishi Sunak’s governments. Labour will hope that this government doesn’t end up going the same way.”

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Emotional Reeves a painful watch – and a reminder of tough decisions ahead

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Emotional Reeves a painful watch - and a reminder of tough decisions ahead

It is hard to think of a PMQs like it – it was a painful watch.

The prime minister battled on, his tone assured, even if his actual words were not always convincing.

But it was the chancellor next to him that attracted the most attention.

Rachel Reeves looked visibly upset.

Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA
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Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA

It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.

Reeves looks visibly upset as Starmer defends welfare U-turn – politics latest

Her spokesperson says it was a personal matter that they will not be getting into.

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Even Kemi Badenoch, not usually the most nimble PMQs performer, singled her out. “She looks absolutely miserable,” she said.

Anyone wondering if Kemi Badenoch can kick a dog when it’s down has their answer today.

The Tory leader asked the PM if he could guarantee his chancellor’s future: he could not. “She has delivered, and we are grateful for it,” Sir Keir said, almost sounding like he was speaking in the past tense.

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Rachel Reeves looked visibly upset behind Keir Starmer at PMQs. Pic PA

It is important to say: Rachel Reeves’s face during one PMQs session is not enough to tell us everything, or even anything, we need to know.

But given the government has just faced its most bruising week yet, it was hard not to speculate. The prime minister’s spokesperson has said since PMQs that the chancellor has not offered her resignation and is not going anywhere.

But Rachel Reeves has surely seen an omen of the impossible decisions ahead.

How will she plug the estimated £5.5bn hole left by the welfare climbdown in the nation’s finances? Will she need to tweak her iron clad fiscal rules? Will she come back for more tax rises? What message does all of this send to the markets?

If a picture tells us a thousand words, Rachel Reeves’s face will surely be blazoned on the front pages tomorrow as a warning that no U-turn goes unpunished.

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