Energy Secretary Grant Shapps introduced the Great British Insulation Scheme, aimed at increasing insulation in homes with lower energy efficiency ratings in Council Tax bands A to D, according to the Institution of Gas Engineers and Managers (IGEM)1. The announcement was made alongside a three-year extension of the Boiler Upgrade Scheme (BUS)1.
The Great British Insulation Scheme is intended to raise insulation levels in properties rated lower on energy efficiency and falling within Council Tax bands A to D1. IGEM reports the scheme is aimed at households and small non-domestic property owners in England and Wales1. No start date, funding total or delivery body for the insulation scheme is given in the source1.
The Boiler Upgrade Scheme, which began in May 2022, provides a grant of £5,000 towards an air source heat pump or £6,000 towards a ground source heat pump or biomass boiler1. With the extension, the funding is available until 20281. The scheme covers households and small non-domestic property owners in England and Wales1.
A Department for Energy Security and Net Zero spokesperson said:
"We recognise that industry would like to have more certainty on future funding for heat pumps post-2025. The recent review into Net Zero also recommended that the BUS should be extended. Therefore, the Department of Energy Security and Net Zero is announcing that we intend to extend the scheme until 2028."
IGEM also reports that the government has allocated approximately £500 million in funding to support hydrogen projects as of 2022, aimed at accelerating hydrogen technologies and infrastructure1.
Why it matters for households
The two measures address different parts of a home's energy use. Insulation reduces the heat a property loses, while the Boiler Upgrade Scheme subsidises the cost of replacing a fossil-fuel heating system with a heat pump or biomass boiler1. For a household in Council Tax band A to D with a poor energy efficiency rating, the insulation scheme is the route named in the announcement1; eligibility detail beyond the band and rating conditions has not been reported1.
The BUS figures are fixed: £5,000 for an air source heat pump, £6,000 for a ground source heat pump or biomass boiler, available until 2028 under the extension1. Households weighing a heat pump against insulation work face two separate schemes with separate conditions, and the interaction between them is not set out in the source1. The extension gives a longer window than the original 2025 endpoint that industry had raised concerns about1.
What happens next
The BUS extension runs until 20281. No timetable, launch date or funding envelope for the Great British Insulation Scheme is given in the source1.