§ Mr. Sheerman
To ask the Secretary of State for Trade and Industry what action her Department is taking to encourage the development of(a) ground source and (b) air source heat pumps. 
§ Mr. Timms
Defra and the DTI supported the formation of the UK Heat Pump forum which serves to disseminate information and promote the technology for both ground source and air source heat pumps.
Heat pumps are a technology that is eligible for support from Carbon Trust programmes. I understand that the Carbon Trust has two projects in contract supporting ground source heat pumps. The Enhanced Capital Allowance scheme, which the Carbon Trust manages, supports heat pumps.
The Clear Skies initiative supports the installation of ground source heat pumps by providing grants off £1,200 to householders and 50 per cent. of installed cost for 565W community groups up to a maximum of £100,000. It does not currently provide grants for air source heat pumps. Budget 2004 also announced the introduction of a reduced rate of VAT on the installation of ground source heat pumps.