Affordability ratio (% of annual disposable income)
What the latest figures tell us
- 01Heat pump affordability has improved by nearly 48% since 2022 The indicative upfront contribution has fallen from 23.4% of annual median non-retired household disposable income in Q2 2022 to 12.2% in Q3 2026, using the index's inflation-adjusted methodology and latest available income benchmark.
- 02Headline installation costs have barely changed Median gross installation costs were £13,182 in Q2 2022 and £12,826 in Q3 2026 — a nominal reduction of approximately 2.7%.
- 03The larger government grant is a major contributor The standard grant increased from £5,000 to £7,500 in October 2023. That increase helps explain why the indicative homeowner contribution has fallen substantially despite relatively stable gross installation prices.
Quarterly data
| Quarter | Gross cost | Grant | Net cost | Real net (2024/25 £) | Income | Ratio | Status |
|---|---|---|---|---|---|---|---|
| Q2 2022 | £13,182 | £5,000 | £8,182 | £9,161 | £39,169 | 23.4% | Verified |
| Q3 2022 | £12,860 | £5,000 | £7,860 | £8,656 | £39,169 | 22.1% | Verified |
| Q4 2022 | £12,969 | £5,000 | £7,969 | £8,557 | £39,169 | 21.8% | Verified |
| Q1 2023 | £13,256 | £5,000 | £8,256 | £8,788 | £39,169 | 22.4% | Verified |
| Q2 2023 | £13,400 | £5,000 | £8,400 | £8,733 | £39,817 | 21.9% | Verified |
| Q3 2023 | £13,495 | £5,000 | £8,495 | £8,791 | £39,817 | 22.1% | Verified |
| Q4 2023 | £13,600 | £7,500 | £6,100 | £6,273 | £39,817 | 15.8% | Verified |
| Q1 2024 | £13,000 | £7,500 | £5,500 | £5,630 | £39,817 | 14.1% | Verified |
| Q2 2024 | £12,800 | £7,500 | £5,300 | £5,356 | £40,840 | 13.1% | Verified |
| Q3 2024 | £12,599 | £7,500 | £5,099 | £5,130 | £40,840 | 12.6% | Verified |
| Q4 2024 | £12,500 | £7,500 | £5,000 | £4,978 | £40,840 | 12.2% | Verified |
| Q1 2025 | £12,082 | £7,500 | £4,582 | £4,528 | £40,840 | 11.1% | Verified |
| Q2 2025 | £12,500 | £7,500 | £5,000 | £4,858 | £40,840 | 11.9% | Verified |
| Q3 2025 | £13,000 | £7,500 | £5,500 | £5,317 | £40,840 | 13.0% | Verified |
| Q4 2025 | £13,437 | £7,500 | £5,937 | £5,707 | £40,840 | 14.0% | Verified |
| Q1 2026 | £13,103 | £7,500 | £5,603 | £5,366 | £40,840 | 13.1% | Verified |
| Q2 2026 | £12,900 | £7,500 | £5,400 | £5,103 | £40,840 | 12.5% | Verified |
| Q3 2026 | £12,826 | £7,500 | £5,326 | £4,987 | £40,840* | 12.2% | Provisional |
* Provisional: compared with the latest published income year.
Data and charts for journalists
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- Dataset
- Suggested citation
- Source: WeLoveHeatPumps UK Heat Pump Affordability Index
- Last updated
- 10 November 2026
- Permanent link
- https://weloveheatpumps.com/heat-pump-affordability-index/
- Underlying sources
- DESNZ Boiler Upgrade Scheme statistics (Heat_Pump_Affordability_Inflation_Adjusted_Corrected (1).xlsx); ONS Effects of Taxes and Benefits, Table 1; ONS CPIH excluding council tax.
Sources, methodology and limitations
What the Boiler Upgrade Scheme covers
The BUS provides grants towards heat pumps and some biomass boilers in England and Wales. DESNZ publishes quarterly statistics including installation costs reported for redeemed vouchers. Only installations made under the scheme are covered.
Why median costs
Median installation costs are less affected by unusually large or complex installations than means, giving a more representative typical figure.
Why non-retired household income
Non-retired households make up most potential heat pump buyers who would finance an installation from earnings. The ONS series is published in real 2024/25 prices.
What equivalised income means
Equivalisation adjusts household income for household size and composition so that different households can be compared. It is a comparative measure of living standards, not literal cash available to spend.
Inflation adjustment
Nominal net costs are converted to 2024/25 prices using CPIH excluding council tax — the measure ONS uses for the income series — as: net × (FY 2024/25 average index ÷ quarterly index). The income series is already in 2024/25 prices and is not adjusted again.
How grants are treated
The standard air-source grant (£5,000, rising to £7,500 from 23 October 2023) is subtracted from the median cost. Q4 2023 spans the change, so an explicitly stated assumption is used and the quarter is flagged. Special rates, such as £9,000 for certain off-gas-grid properties in 2026, are recorded separately and not used in the standard series.
Aligning years and quarters
Income is published for financial years (April–March). Each calendar quarter is matched to the financial year it falls in, so Q2 2022–Q1 2023 use 2022/23 income.
Why latest figures may be provisional
Income data is published with a lag. Quarters beyond the latest published year are compared with the most recent income benchmark and clearly marked provisional in the chart and table. They are estimates, not confirmed observations. BUS statistics may also be revised.
Indicative contribution = median gross cost − assumed grant. It is not the observed median amount paid by homeowners. All figures are calculated in the WeLoveHeatPumps master spreadsheet from the original sources below and published here unchanged.
Original datasets
What would a heat pump cost for your home?
National averages are useful, but installation and running costs depend on your property. Use our free calculator for a personalised estimate.