Dale Vince, the Ecotricity founder and prominent Labour supporter, has accused the Government of mis‑selling heat pumps by overstating their ability to cut household energy bills.

Speaking to the BBC on Tuesday, Mr Vince drew on two decades of personal experience with the technology.

“I have been using heat pumps for about 20 years, so I know what they can do and what they can’t do,” he said.

He criticised what he described as a widespread narrative that heat pumps routinely save households money.

“I do object to the fairly general narrative that they can save you money, because that is a very rare circumstance,” he said, adding that homes must be extremely well insulated “just to break even”.

Mr Vince said heat pumps need a coefficient of performance (COP) of at least four to deliver genuine savings — a measure of how much heat is produced per unit of electricity consumed.

UK installations, he said, typically fall well short, with an average COP of around 2.8.

That performance gap, he argued, means households can end up paying “around 30 per cent” more for energy. “That’s the reality,” he said.

“Against that, we have got the mis‑selling, I think, of heat pumps.”

His comments comes at a sensitive moment for Energy Secretary Ed Miliband, whose £15billion Warm Homes Plan places heavy emphasis on heat pump installation.

The scheme aims to install heat pumps, solar panels, insulation and improved glazing in five million lower‑income homes, with taxpayers contributing £5billion.

Landlords could face costs of up to £10,000 per property by 2030 under related efficiency rules.

The Government has already scaled back its ambitions amid slower‑than‑expected uptake.

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Annual installation targets have been reduced from 600,000 to 450,000 after repeated shortfalls, with around 61,000 heat pumps installed in 2025, up only slightly from 58,000 the previous year.

The Department for Energy Security and Net Zero defended the technology, saying households combining heat pumps with solar panels and battery storage could save up to £550 a year compared with gas boilers.

Pairing heat pumps with time‑of‑use tariffs could cut bills by a further £130, a spokesman said, adding that “the British public is showing record demand for heat pumps” and that the Warm Homes Plan ensures “everyone can access the benefits and savings” of home upgrades.

However, independent analysis has cast doubt on those claims.

Research by the Energy Saving Trust suggests households with newer gas boilers may see little or no annual savings from switching to air‑source heat pumps, with outcomes varying widely depending on insulation, tariffs and energy use.

Installation costs remain a major barrier.

Air‑source heat pumps typically cost around £13,000, and although Government grants reduce upfront expenses, many households still face substantial bills.

Mr Vince, a long‑time supporter of environmental causes, said the gap between projected and real‑world performance poses a serious challenge to the Government’s green‑heating ambitions.

His comments highlight growing debate over how heat pumps are being promoted as part of the UK’s net‑zero strategy.

The Government has not responded directly to his claim that heat pumps have been mis‑sold.

Ministers continue to argue that improving insulation alongside low‑carbon heating will be central to reducing emissions and long‑term energy costs.