The UK Government has announced a significant expansion of its flagship heating grant scheme, opening up applications to thousands more households and introducing new financial handouts.
Major Expansion to Boiler Upgrade Scheme
On Tuesday, the Department for Energy Security and Net Zero revealed major extensions to the Boiler Upgrade Scheme that will make clean heating technology more accessible and affordable. The existing £7,500 grants for air source and ground source heat pumps will now be complemented by new £2,500 discounts for alternative heating solutions.
Officials confirmed that households can now receive a £2,500 discount towards installing air-to-air heat pumps, which provide both winter heating and summer cooling capabilities. This marks the first time this dual-purpose technology has been included in the government's subsidy programme.
New Technology Options and Costs
The expansion also introduces £2,500 grants for heat batteries, which store thermal energy overnight for use during daytime hours. According to government estimates, the typical cost of installing an air-to-air heat pump in a flat or small house is around £4,500, meaning the new grant could cover more than half of the upfront expense.
Minister for Energy Consumers Martin McCluskey stated: "Air-to-air heat pumps offer the best of both worlds – keeping you warm in winter while cooling you down when summer comes along. With heat pumps more popular than ever, we want to make sure as many people as possible can benefit, especially those in flats or small homes without central heating."
Industry Response and Future Implications
The announcement comes as heat pump installations reach record levels in the UK, with the Boiler Upgrade Scheme already processing approximately 100,000 applications. However, concerns are mounting about potential future restrictions to subsidies for clean technology.
Energy analyst Jess Ralston from the Energy and Climate Intelligence Unit welcomed the expansion, noting: "If the UK doesn't make the leap away from gas boilers to electric heat pumps that can run on British renewable electricity, as a nation we'll become ever more dependent on foreign gas imports as North Sea output continues to decline."
Ralston added that the expansion "implies that the Government is backing its existing policies instead of cutting them in the upcoming Budget, as has been rumoured, which would create uncertainty in the industry and the jobs that rely on it."
The government has also launched consultations on other innovative clean heating solutions, including thermal storage, infrared panels and renewable fuels, indicating a broader commitment to diversifying the UK's heating options beyond traditional gas boilers.
