The ONS counted 46,262 plumbing, heating and air-conditioning businesses registered for VAT or PAYE in 2024, turning over £24.0bn between them. The striking change in this trade is the cost of labour. In 2019 staff costs took 20.7% of turnover. By 2024 they took 28.0%.
| 2024 | Plumbing, heating and air-conditioning |
|---|---|
| Businesses (VAT or PAYE registered) | 46,262 |
| Total turnover | £24.0bn |
| Average turnover per business | £519,000 |
| Staff costs, % of turnover | 28.0% |
| Bought-in goods and services, % of turnover | 49.6% |
| Left after staff and bought-in costs, % of turnover | 22.4% |
| Stock held, in days of purchases | 29 days |
Source: ONS Annual Business Survey, 2024 results (published 26 May 2026). It covers businesses registered for VAT or PAYE, so the smallest sole traders are not included. Averages are pulled up by the largest firms. For sole traders and partnerships, the owners’ own pay is not in staff costs: it comes out of what is left.
From each £100 invoiced, about £50 goes on boilers, parts, materials and other bought-in services, and £28 on staff. About £22 is left for the owner's pay in an unincorporated business, finance costs, tax and profit.
Plumbing, heating and air-conditioning: turnover rose 38% between 2019 and 2024, against a 24% rise in consumer prices, so it grew in real terms. The number of businesses rose 19%. Staff costs went from 20.7% to 28.0% of turnover, and what was left after staff and bought-in costs went from 19.5% to 22.4%.
Bought-in costs fell as a share of turnover over the same period, from 59.8% to 49.6%, which more than offset the rise in staff costs. Firms that did not see the same fall in materials costs, or did not raise prices, will have been squeezed.
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