DESNZ Wants to Raise the Clean Heat Target Again for 2027/28
DESNZ is consulting on raising the Clean Heat Market Mechanism’s target again, less than a year after the current one took effect. If you haven’t read our explainer on how the CHMM works, start there. This is the update to it.
What’s actually being proposed
The scheme already fines gas boiler manufacturers £500 for every heat pump they fail to sell against an 8% target for the current scheme year, running April 2026 to March 2027. That figure is confirmed and already in effect. The new consultation, open from 12 October to 8 November 2026, proposes raising the target to 9% for 2027/28, and sets out targets running through to 2030/31, extending the scheme to 2032.
Nothing here is decided yet. It’s a proposal inside a live consultation closing this week, not a confirmed rule. The government’s response could land within weeks or take longer, and the final number might not be 9% at all.
Why manufacturers are watching this closely
A target rise matters more than it sounds. The CHMM pushes manufacturers to sell heat pumps at a loss, or close to it, to avoid paying the per-unit fine on boilers, and that subsidy effectively comes out of boiler pricing somewhere. A higher target probably means a bigger discount on heat pump quotes, and quite possibly a bigger markup on gas boilers to pay for it.
What to do with this if you’re deciding now
If you’re already leaning toward a heat pump, an unresolved consultation doesn’t change the maths on your current quote. If you’re on the fence and can afford to wait a few months, it’s worth watching for the government’s response before assuming today’s discount is as good as it gets.
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Frequently asked questions
Has the CHMM target for 2027/28 been confirmed at 9%?
No. That's the figure DESNZ proposed in a consultation running 12 October to 8 November 2026. It hasn't been confirmed, and the eventual target could come out different.
What's the CHMM target right now?
8%, for the scheme year running April 2026 to March 2027. That figure is already confirmed and in effect. It's the one after it that's under consultation.
Does a higher CHMM target affect gas boiler prices?
Likely, to some degree. The scheme fines manufacturers per unit for missing their heat pump sales target, and that cost tends to flow into pricing on both products, discounting heat pumps and marking up boilers.