A heat pump external unit on wall outside a modern brick-built house

Higher Boiler Upgrade Scheme grant now available

The increase in Boiler Upgrade Scheme grant promised by the Prime Minister last month has now come into effect. Householders can get £7,500 towards the cost of installing an air source or ground source heat pump – an increase of 50 per cent on the previous grant for ASHPs.

Energy Security Secretary Claire Coutinho said: “No one should have to choose between cutting costs and cutting emissions: our pragmatic approach means we can continue to deliver on our ambitious net-zero targets without unfairly hitting the pockets of hardworking families.

“From today [23 October 2023], for some households, starting prices for heat pumps could now be below the average gas boiler, as we have increased the cash grant by 50 per cent to £7,500 – making our scheme one of the most generous in Europe.

“This will help thousands of people across the country reduce their energy use and keep their homes warm.”

The grant remains £5,000 for biomass boilers. The government has said that the BUS will also receive an allocation from the £6 billion allocated for energy efficiency and clean heat over 2025-2028, so the future budget is not fixed.

The government has also launched its Welcome Home to Energy Efficiency campaign, which encourages families to improve their home’s energy efficiency. The ads on TV, on-demand services, podcasts, print and billboards recommend measures including insulation, heat pumps and solar panels.

Lord Callanan, minister for Energy Efficiency and Green Finance, said: “Making our housing stock more energy efficient not only furthers our net zero ambitions but enables families to cut their energy use and reduce their bills. Welcome Home to Energy Efficiency will help people identify measures that will work for them, and in turn create street upon street of warmer homes.”

Boiler Upgrade Scheme grants can be used alongside support from the £1 billion Great British Insulation Scheme for more than 300,000 homes, including vulnerable families in England, Wales and Scotland.

  • The government says it will explore alternative approaches to decarbonising off-grid homes in a consultation in 2024. It says the consultation will make clear that it does not propose that any household will have to fit a low-carbon option that is not suitable for the property.

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