Why the Industry is Pushing for Heat Pumps Salary Sacrifice Schemes – And What it Means for Green Jobs

heat pumps
07 Jul 2025

As the UK accelerates its net-zero goals, the transition to cleaner, more energy-efficient technologies is not just about policy; it's about accessibility, and one growing call from the heating and energy sector is for heat pumps to be included in salary sacrifice schemes, much like the successful Cycle to Work and electric vehicle schemes. And it could be a game-changer.

What Are Salary Sacrifice Schemes?

Salary sacrifice schemes allow employees to exchange part of their gross salary in return for non-cash benefits such as a company car, tech equipment, or gym membership, with tax and National Insurance advantages. Extending this model to include heat pumps could significantly reduce the upfront cost of these systems for homeowners and tenants.

Why Heat Pumps?

Heat pumps are considered one of the most efficient and eco-friendly alternatives to traditional gas boilers. They work by transferring heat from the air or ground into a building, providing both heating and hot water. With the UK government aiming to install 600,000 heat pumps per year by 2028, adoption needs to ramp up fast.

The challenge? Upfront costs. A typical heat pump system can cost between £7,000 and £13,000 - a significant barrier for many households. A salary sacrifice scheme could lower that barrier, spreading the cost and making the technology more accessible to the average consumer.

Industry Voices Speak Out

A coalition of manufacturers, energy experts, and environmental organisations has urged the government to expand salary sacrifice offerings to cover low-carbon technologies, including heat pumps and solar panels. They argue that incentivising sustainable home upgrades through workplace schemes could drastically increase adoption while supporting the government’s wider energy efficiency goals.

What This Means for the Job Market

From a recruitment and employment standpoint, the expansion of heat pump installations would fuel significant demand for skilled workers, i.e, Engineers, Electricians, Installers, and Project Managers - particularly in the HVAC, construction, and energy sectors.

This shift could lead to:

  • Increased demand for retraining and upskilling in green technologies.
  • A rise in apprenticeship job opportunities in sustainable engineering.
  • More long-term roles created across the country, especially in areas undergoing retrofit programmes.

For companies in the built environment and energy sectors, this is an opportunity to future-proof their workforce and align with ESG and sustainability goals.

Final Thoughts

Including heat pumps in salary sacrifice schemes is a simple but powerful step towards tackling climate change, reducing household energy bills, and creating thousands of skilled jobs in the green economy. As we look to decarbonise homes and buildings across the UK, removing financial barriers and making sustainable technology more accessible could be the missing link between climate ambition and real-world action.

At Bennett & Game, we’re already seeing demand rise for professionals in the renewable energy and HVAC space. If you’re a candidate looking to move into the green sector, or a business needing to expand your team, now is the time to make your move.

Get in touch to find out how we can support your recruitment journey in the clean energy transition.