The UK government has announced a significant increase in funding for its boiler upgrade scheme, offering homeowners in England and Wales grants of £7,500 ($9,435) to offset the cost of installing heat pumps. The initiative, aimed at accelerating the adoption of energy-efficient heating technologies, will see an additional £30 million allocated for the 2024-25 fiscal year, bringing the total investment for that period to £150 million. For fiscal 2025-26, the budget will nearly double to £295 million.
Launched in 2021, the scheme has gained traction, with October marking a record number of applications, according to Ofgem, the UK’s gas and electricity markets authority. The financial boost coincides with new regulatory changes to simplify the installation process for air-source heat pumps.
Easing Restrictions on Heat Pump Installations
From early 2025, the government will remove planning regulations that currently prohibit heat pump installations within one meter of a property’s boundary. This change will allow households to install air-source heat pumps without needing a planning application, addressing a key barrier identified by industry leaders.
Research from Octopus Energy reveals that approximately one-third of customers who initially plan to order heat pumps abandon the process due to planning restrictions. Greg Jackson, CEO of Octopus Energy, praised the decision, stating: “Removing outdated and unnecessary red tape is an urgent priority to grow this sector and get low-cost, safe, clean heating technology into British homes.”
The regulatory change has been welcomed by leading manufacturers and energy companies, who see it as a critical step in driving heat pump adoption across the UK.
Part of a Larger Energy Efficiency Strategy
The enhanced boiler upgrade scheme forms part of the UK government’s broader Warm Homes Plan, which aims to invest £3.2 billion in home energy efficiency by 2026, with a particular focus on social housing. According to government estimates, up to 300,000 households are expected to benefit from home energy upgrades in the coming year.
Research Highlights Potential Impact
A recent study by the University of Strathclyde simulated the nationwide rollout of heat pumps through 2050, concluding that expanded adoption could play a key role in mitigating high energy prices. With growing financial support and fewer regulatory hurdles, the UK government hopes to accelerate the transition to energy-efficient heating solutions and achieve its climate targets.
