The Boiler Upgrade Scheme grant for heat pumps was increased to £7,500, the government announced in September 2023 as part of the Prime Minister's speech on 20 September setting out a "new approach" to net zero1. The grant had previously stood at £5,000 for an air-source heat pump and £6,000 for a ground-source heat pump2. Under the change, the same £7,500 rate applies to both air-source and ground-source heat pumps3.
The Climate Change Committee, in its assessment of the announcements published on 12 October 2023, said the uplift was not matched by extra funding:
"Although the grant for heat pumps was increased from £5,000 to £7,500 it has not been accompanied by a larger budget and will, therefore, serve fewer homes."
Carbon Brief reported that whether the overall funding for the scheme would increase was not specified1. The Energy and Climate Intelligence Unit described the change as "an increase in the support grant available for heat pumps from £5,000 to £7,500"5.
For households already in the process, the distributor Alto Energy said those who had already redeemed a voucher would not be eligible for the uplift, while anyone with a live voucher application could revoke it and reapply after Monday 23 October3. It added that the final decision on availability, eligibility and pay-out rests exclusively with Ofgem3.
The same set of announcements changed other dates. The ban on the sale of new oil, LPG and new coal heating for off-gas-grid homes moved from 2026 to 2035, to match gas boilers1. The 2035 phase-out of gas boiler sales remains, but with an exemption expected to cover about a fifth of homes1. The Climate Change Committee said the exemption of 20% of households from the phase-out "will have an impact on emissions all the way out to 2050" and "creates widespread uncertainty for consumers and supply chains"4. It also noted the government decided not to regulate for improved energy efficiency of rented homes, a policy it said would have saved tenants of upgraded properties £255 per year under pre-crisis energy prices4.
Which? found barriers beyond grant levels. In a survey of 2,067 UK adults conducted in June 2023, around four in 10 (44%) homeowners did not know what a heat pump is, and among those who did, two-thirds (67%) said affordability was the main barrier, 44% were not convinced the technology is good enough and 23% felt a heat pump was inappropriate for their property2.
| Measure | Before | After |
|---|---|---|
| Air-source heat pump grant | £5,000 | £7,500 |
| Ground-source heat pump grant | £6,000 | £7,500 |
| Off-gas-grid fossil heating phase-out | 2026 | 2035 |
Why it matters for households
A larger grant reduces the upfront cost of a heat pump for homes that receive one, which bears directly on whether a household can cut its reliance on delivered gas, oil or LPG. But the Climate Change Committee's assessment is that the same budget now covers fewer installations, so the number of homes able to draw on the scheme falls even as the amount per home rises4. For a household weighing a heat pump against a replacement fossil boiler, the grant level is only one part of the arithmetic; the full cost of a heat pump and the cost with the Boiler Upgrade Scheme grant determine the balance. Eligibility questions, including whether a home with an existing gas boiler can apply, sit alongside the eligibility rules for which homes and systems qualify. The delay to the off-gas-grid phase-out means rural homes using oil or LPG face no change in the near term, while the 20% exemption from the 2035 gas boiler phase-out leaves unclear which homes it covers4. The Climate Change Committee also warned that the changes increase longer-term risks to meeting the 2050 target, mainly through buildings policy4.
What happens next
Alto Energy stated that live voucher applications could be revoked and reapplied for after Monday 23 October3. The Climate Change Committee said it plans to publish its advice on the Seventh Carbon Budget in early 20254. It also said the government had not published estimates of the emissions effect of the September announcements, and urged greater transparency when major announcements are made4. The Department of Transport had not responded to its zero emission vehicle consultation, which closed in May, and the mandate still needed a vote in the House of Commons1.
Sources5 cited
- In-depth Q&A: What do Rishi Sunak’s U-turns mean for UK climate policy? - Carbon Brief, carbonbrief.org
- Government must take the lead in supporting consumers who face challenges switching to electric vehicles and heat pumps, Which? warns - Which?, which.co.uk
- Heat Pump Grant Increasing To £7,500, altoenergy.co.uk
- CCC assessment of recent announcements and developments on Net Zero - Climate Change Committee, theccc.org.uk
- Energy & Climate Intelligence Unit | Winter energy bills set to…, eciu.net