Bank offers £2,000 towards the cost of installing heat pump

BARCLAYS will pay its mortgage customers £2,000 to install a heat pump, as it says most households cannot afford to make their homes more energy efficient.

The high-street lender will offer cash rewards for completing green works, including £2,000 for an air or groundsource heat pump, £1,000 for solar panels and £500 for cavity wall insulation.

A survey of 2,000 homeowners by Barclays found that 90 per cent hoped to make eco-improvements within five years, but three quarters said they were currently unaffordable.

Barclays estimated the average cost of a heat pump varies between £9,000 and £19,000, so even with a £2,000 reward, homeowners will need to make a significant investment.