Segment E – Homeowners eligible for free heat pumps
Older low-income families who are likely to be eligible for the government-funded heat pump schemes, but are less engaged with environmental issues or green technologies. Around a third would consider a heat pump for their home.
By the numbers
This large segment comprises around 7.7 million households - a quarter of UK households. These are older (with 44% of the heads of household aged 66+), low-income, mainly single people or couples with children no longer living at home. They tend to live in either owned or rented smaller terraced or semi-detached properties valued below the national average. This segment is prominent in post-industrial towns on the coast, such as Hastings, and inland, such as Stoke-on-Trent.
This is the group most likely to consider home equity release in the next 12 months (38%). In this group, 30% are saving for holidays or travel, while 27% are not saving for anything. Some 35% don’t consult any sources before making a financial decision, and around 40% are retired. They have a lower-than-average use of the internet and keep informed through printed newspapers and magazines. They are regular viewers of live TV.
They are likely to be eligible for the government-funded heat pump schemes, but are less engaged with environmental issues or green technology. They tend to be wary of trying new technologies due to the significant cost investment and potential disruption to their homes – only 9% often try new technologies, the lowest across all the segments.
Of this segment, 37% would consider a heat pump for their next heating system in the next five years and 33% say the biggest barrier to getting a heat pump is the installation costs, followed by 16% who are happy with their current system and see no reason to change it. The benefit most likely to persuade them to get a heat pump in the future would be lower home energy bills (16%), with one in ten citing environmental reasons.
Deep dive interview insights
Priorities for current heating system
With budgets tight and the cost of living crisis impacting day-to-day life, this segment values efficiency and value for money from their heating system. With many households having young children at home, having a comfortable, constantly warm home is important.
Benefits of moving to electricity
As easing pressure on household budgets is a priority, moving away from unpredictable gas prices and standing charges is a major motivator to switch. This segment also sees value in being able to cool their home in summer. Moving away from the risk of gas leaks is also seen as a benefit by this segment.
Approaches for preparatory upgrades
This is the only segment not inclined to do preparatory upgrades, with upfront costs cited as a big reason and a blocker that would require significant financial help, such as grants.
Sources of information
Trust in professionals was reported particularly by this segment – professionals they have hired previously, or those recommended by friends and online sources. Sticking with online, videos – in particular YouTube – are cited as a source of information alongside forums such as Reddit, but less so comparison sites. It is likely that a good proportion of this segment would have been impacted by faulty cavity wall fittings, so they would be less likely to trust the government for advice.
Attitudes towards heat pumps
There are mixed feelings towards choosing a heat pump as their new heating systems in this segment. Lack of trust in the technology is a strong trend, with these feelings reinforced by peers. This is followed by wariness about the cost and the belief that they lack the physical space at home to fit a heat pump.
Potential message themes for this audience
The Public First analysis, funded by The MCS Foundation, contains segments that could map in many ways to our Segment E. These are reluctant upgraders and balanced improvers. For reluctant upgraders, the report advises that communication alone is unlikely to shift attitudes, and improvements to cost and ease must come first. Focusing on grants, guarantees, standards and protections will resonate most. Also, potentially, messages around the environment and having control over their bills could serve well. For balanced improvers, the report outlines that “comfort, incentives, and control perform better than modernity or aesthetics.” Again, messages around grants and the environment tended to do better with this group.
As we move into a period with no live scheme for funded heat pumps for low-income households, ensuring this segment is not left behind in the heat pump rollout is critical. Whatever policies come into place, the communications for this segment is clearly a fine line best trodden with sensitive messengers and targeted support and advice. A recommendation would be to focus on financial support, comfort in the home, value for money and peace of mind.