Heat Pump Grants Are Set To Be Cut. What Does It Mean For You?

If you have been thinking about replacing an old gas or oil boiler with a heat pump, there is news this week worth knowing about.

According to a report in The Guardian, ministers are preparing to cut hundreds of millions of pounds from the Boiler Upgrade Scheme to help fund higher defence spending. That's the government grant that currently puts £7,500 towards a heat pump in England and Wales.

Nothing has changed yet. But it is a clear signal that the grant may not look the same for much longer.

Key Takeaways

• The budget is shrinking. Hundreds of millions are expected to come out of the scheme's £2.7bn five year budget.
• The grant is still there today. The scheme is not being scrapped. It still offers £7,500 towards an air source heat pump, and up to £9,000 for some off grid homes.
• Less money means fewer grants. A smaller pot could mean the money runs out sooner, or the amount per home is reduced.

What Actually Happened?

The Department for Energy Security and Net Zero has been asked to find more than £2bn of savings to help pay for national defence. Sources told The Guardian that part of those savings will come from the Boiler Upgrade Scheme.

The scheme has helped nearly 80,000 households switch to a heat pump since it launched in 2022. The government says it will set out how it will fund its defence plans this autumn, so we expect more detail in the coming weeks.

What Could It Mean For Your Home?

Right now the grant does a lot of the heavy lifting. Octopus Energy's chief executive Greg Jackson said this week that, after the grant, a heat pump can cost about the same to install as a gas boiler.

If the grant is cut, that gap opens up again. The heat pump stays the same. What you pay for it doesn't.

That is why timing matters. The grant is claimed through a voucher that your MCS certified installer applies for, and it is tied to your installation. Getting a survey done and the voucher applied for while the scheme is fully funded is the simplest way to protect yourself.

Is A Heat Pump Right For You?

A grant is a good reason to look at a heat pump. It is not a reason to buy one on its own. A heat pump works best when it is designed around your home. That means looking at:

• How well your home holds its heat
• Your radiators and hot water cylinder
• Where the outdoor unit can sit
• Whether solar panels or a battery could help run it

Some homes are ready now. Others need a few changes first. We will tell you honestly which one yours is.

You can read more about how we design and install air source heat pumps, and how pairing one with solar panels and battery storage helps you run it on your own energy. For the bigger picture, our guide Before You Buy Solar Panels, Look At The Whole Home is a good place to start. Bills are also forecast to rise again in January, which we cover in our price cap update.

What We Would Do Now

1. Don't panic.

The grant is still available today.

2. Get the facts on your home.

A survey tells you whether a heat pump suits your property and what it would need.

3. Move while the grant is fully funded.

If it does make sense, there is nothing to gain by waiting.

Book a discovery call and we will talk you through it. No pressure. Just clear advice.