The association says the decision will complement other financial incentives, such as the Boiler Upgrade Scheme which will soon see £5,000 grants on heat pump technology introduced. However, it argues that more must be done to boost the heat pump market, including the removal of environmental levies and further upfront support, such as low interest loans.

Phil Hurley, Chair of the Heat Pump Association said: “The Spring Statement comes with great news for the heat pump industry and households today. The HPA has been working hard behind the scenes calling for financial incentives to tackle the barriers to heat pump uptake, and the decision to cut VAT from 5% to zero on energy-saving measures is an important step forward.

"While this decision alone will not be enough to enable all households to access technologies such as heat pumps, we are confident that it will play a role in helping to accelerate the switch to low carbon heat. But we must remember that more steps still need to be taken to support the rollout of heat pumps, including the removal of illogical environmental levies on electricity.”