Government-backed staged payments could strengthen protection on heat pump projects

UK – Government-backed staged payments and a new Approved Code for home improvement businesses could give domestic heat pump installers and their customers additional protection when managing project payments and disputes.

The government said the Trusted Payments app will go live next week, with more than 100,000 traders expected to be able to access the service before the end of September. Customers can link payments to agreed project milestones, allowing money to be released progressively as work is completed.

Payments linked to project milestones

The staged-payment model is intended to reduce the risks associated with large upfront payments on home improvement projects.

For higher-value work such as domestic heat pump installations, it could give customers greater control over when payments are released while providing contractors with an agreed payment structure linked to progress on site.

Trusted Payments is already being promoted through TrustMark to Registered Businesses, with the latest government announcement signalling significantly wider access to the service.

Approved Code to launch this autumn

Alongside Trusted Payments, the government is supporting a new Approved Code being developed by the Furniture and Home Improvement Ombudsman with the Chartered Trading Standards Institute.

Businesses joining the code will be expected to demonstrate higher standards of customer service, transparency and dispute resolution.

The first retailers are expected to operate under the code by the end of September, with a full launch planned for December 2026.

Businesses can choose to sign up to the Approved Code, which focuses on customer service, transparency and dispute resolution.

Existing heat pump requirements remain

The new measures would sit alongside, rather than replace, existing requirements that apply to installations supported through the Boiler Upgrade Scheme.

Businesses carrying out BUS installations must be MCS certified for the relevant technology and operate under an approved consumer code.

Approved consumer codes currently include HIES, RECC and MCS:2025. Installers that have transitioned to the redeveloped MCS Installer Scheme no longer need separate membership of HIES or RECC, while installers still operating under the previous MCS scheme must retain membership of one of the two codes.

The government has not yet detailed the extent to which heat pump installers will participate in either Trusted Payments or the new Approved Code.