The scheme had a budget of £150 million to fund 30,000 heat pump installations. At the end of its first year, under 10,000 households had received their £5000 subsidy voucher.

The scheme’s unspent budget will now be returned to the Treasury.

Commenting on the scheme figures, Mike Foster chief executive of the trade body the Energy and Utilities Alliance (EUA) said: “When will the Government actually listen to the people, the majority of whom simply cannot afford a heat pump, subsidised or not.”

“The scheme is simply a taxpayer handout to those who don’t need it. It does little for carbon saving compared to investment on insulation. It does not help people keep bills low. It takes from the poor to give to the wealthy.”

“More taxpayer-subsidised heat pumps have probably been fitted in Cornish holiday homes than the whole of Britain’s second city, Birmingham.  People are still hurting with high energy bills, insulating the homes of those most in need should be the priority, not giving hard-earned taxpayers’ cash to those who were going to buy a heat pump anyway.”