The government's Powering Up Britain Energy Security Plan, published in April 2023, included a new £30 million Heat Pump Investment Accelerator and an extension of the Boiler Upgrade Scheme until 20281. The plan also set out the Great British Insulation Scheme, previously known as ECO+, intended to upgrade 300,000 of the country's least energy efficient homes1.
The Boiler Upgrade Scheme provides grants of up to £6,000 towards a heat pump for homes in England and Wales1. Its extension coincides with an aim to ensure a minimum of 600,000 heat pumps are being installed annually from 20281. The £30 million Heat Pump Investment Accelerator is named among the plan's measures, but the source does not set out how the money will be allocated, who can apply, or when it opens1.
The industry body HIES, which represents installers, welcomed the package. It said the extension of the Boiler Upgrade Scheme reflected what its members were reporting, and that installers wanted to invest further but needed the certainty of a long-term market1.
"We especially welcome the extension of the Boiler Upgrade Scheme until 2028"
The plan also covered larger infrastructure commitments, including investment in offshore wind, Great British Nuclear, electric vehicle charging infrastructure, the Net Zero Hydrogen fund, carbon capture and storage, and a fifth round of investment in renewable electricity1. These sit outside the household measures, but they form the wider context in which domestic heating policy is being set.
| Measure | Detail as reported |
|---|---|
| Heat Pump Investment Accelerator | New, £30 million1 |
| Boiler Upgrade Scheme | Extended until 20281 |
| Boiler Upgrade Scheme grant | Up to £6,000 towards a heat pump, England and Wales1 |
| Great British Insulation Scheme (formerly ECO+) | Target of 300,000 least energy efficient homes1 |
| Heat pump installation aim | Minimum 600,000 a year from 20281 |
Why it matters for households
For a household weighing up a heat pump, the significance of the announcement lies in the length of the funding window rather than the size of any single grant. A scheme confirmed to run until 2028 gives a longer horizon than a one or two year programme, which matters where a home needs insulation, radiator changes or electrical work before a heat pump can be fitted. The Heat Pump Grants and Funding Across the UK page sets out how the current grant landscape is arranged.
The insulation element addresses a different constraint. A heat pump works best in a home that holds its heat, and the 300,000 home target under the Great British Insulation Scheme is aimed at the least efficient properties, which are typically the most expensive to run and the hardest to treat1. Households in that group are the ones for whom fabric improvements come before any change of heating system.
The 600,000 a year installation aim from 2028 is a national figure, not a household one, but it indicates the direction of policy and the scale of installer capacity that would be needed to meet it1. For a home considering finance for a heat pump or other energy installation, the practical question is whether grant funding, installer availability and the cost of any enabling work line up at the point the work is done. The wider UK heat pump policy and targets picture, including the rules that accompany the grants, is where those conditions are set out.
What happens next
The Boiler Upgrade Scheme runs until 2028 under the plan1. The Great British Insulation Scheme is intended to reach 300,000 homes, and the stated aim is a minimum of 600,000 heat pump installations a year from 20281. No opening date, eligibility rules or application process for the £30 million Heat Pump Investment Accelerator has been reported1.
Sources1 cited
- Powering Up Britain Energy Security Plan - HIES, hiesscheme.org.uk