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Do you have the drain valve open on the water heater , this could explain a dribble at the taps when the pump is working .
Or there's a blockage probably at the water heater , is it a Carver Cascade heater ? .

atb

Wizard

See here Only a trickle through carver waterheater , see Garys post . 
Gary is the main man on Carver stuff , he gives advice freely so it may be an idea to give him a bell if your stuck .

atb

Wizard 

sounds like the non return valve is stuck shut.

to prove a non return valve fault is easy.fit all up as normal,ie.pump - water - switch on. have someone to stand inside to switch on the pump when you say so.remove the drain screw bung from the outside of the carver heater (5) .tell them to switch ON for a minute or two.if the non return is not allowing in water to the heater,non will come out,or very little.if the non return is ok the water will gush out of the drain plug at the same speed of an open tap.i fixed one that was stuck by using a 8 inch water colour brush pushed up inside the drain hole,this pushed it back and it worked fine after that. SEE NO.10 BELOW