Heat pump grant scheme gets £1.5bn funding boost
A Government grant scheme to support the installation of heat pumps is set to benefit from another £1.5 billion in funding.
The additional financing for the Boiler Upgrade Scheme will fund an extra 200,000 heat pump installations.
Under the scheme, which was launched last year, homeowners can claim up to £7,500 to cover the cost of a heat pump.
Sir John Armitt, chair of the National Infrastructure Commission, said the extra money was “a sensible and welcome move”.
He said: “Government is the only player with the power and means to shift the dial on the transition from fossil fuels to clean electricity for heating, which will also reduce household bills over time.”
The new funding was announced as part of a £6 billion package of support for net-zero schemes, originally announced in the 2022 autumn statement.
As well as the boiler upgrade scheme in England and Wales, £1.25 billion will go to a social housing decarbonisation fund.
A new local authority retrofit scheme for low-income homes will also open in 2025, backed by £500 million, and a £400 million energy efficiency grant will go to households, again from 2025, to fund bigger radiators and better insulation.
The funding covers the period 2025 to 2028, with ministers now confirming which new and existing schemes will benefit.
Energy Secretary Claire Coutinho said: “Cutting energy bills is my top priority. Today’s funding will help those who are most in need and keep around a million more families warm during winter.”
Sir John said: “Alongside setting aside more money for the Boiler Upgrade Scheme, greater support for heat networks and better conservation of energy in social homes will all be encouraging steps in the right direction when the money becomes available, though those steps will need to become bigger and bolder in future.”
Mike Thornton, chief executive at the Energy Saving Trust, also welcomed the plans.
He said: “We look forward to learning more about the detail including plans for rollout and engagement, as well as how we can help the UK Government to ensure they are as successful as possible in supporting people to get the right measures into their homes.”
