Planet
The Energy Transition
£15k heat pump grants. 0% VAT on EVs. £8bn in public transport. The transition funded by the transition.
£15k
heat pump grant per household (£18k in Northern Ireland)
The measure
Investing now to save in the future.
Incentivising choices which lock in cheaper and cleaner energy for households.
Building better public transport while pricing roads dynamically.
The energy transition is not held back by technology. Heat pumps work. Electric vehicles work. The barriers are upfront cost and uncertain payback.
These are the barriers that grants, VAT reform and road pricing discounts address.
Expected impact
- Heat pumps affordable for most households, not just the well-off
- EVs cost less to buy and run than petrol or diesel cars
- Charging becomes practical with 300,000 public points by 2030
- 3.5 million households have heat pumps by 2030
- Public transport becomes more frequent, more reliable, and more useful
Cost and revenue
| Transition spending | Total |
|---|---|
| Heat pump grants (£15,000 per household; £18,000 in Northern Ireland) | £15bn |
| EV incentives (0% VAT, 70% road pricing discount, charging infrastructure) | £7bn |
| Public transport investment (bus, rail, electrification) | £8bn |
| Home insulation for lower-income households | £10bn |
| Fossil fuel worker retraining | £5bn |
| Total revenue cost | £45bn over 5 years |
Funded in part by the Carbon Tax. As emissions fall, Carbon Tax revenue falls. Fewer households need the transition grants because more have already made the switch. The package is becomes less necessary as it succeeds.
3.5m
heat pumps installed by 2030
52%
EV fleet share by 2030 (from 15%)
+18%
public transport use
£45bn
total transition support package