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Citizens Advice responds to DESNZ consultation on Boiler Upgrade Scheme amendments

Citizens Advice has told the government it welcomes the £7,500 Boiler Upgrade Scheme grant uplift but opposes cuts to grants for some households and wants the scheme's overall budget clarified.

A newspaper on a kitchen table beside a model of grants and schemes

Citizens Advice published its response to the Department for Energy Security and Net Zero (DESNZ) consultation on proposed amendments to the Boiler Upgrade Scheme on 18 October 2023. The charity welcomed the increase in the maximum grant to £7,500, which was announced while the consultation was open, but said it did not support reducing the amounts paid to some consumers1.

The response states that cost remains one of the biggest barriers to heat pump installation even with the grant in place, and that the scheme's flexibility should be aimed at households that cannot afford a heat pump but cannot access ECO1. Citizens Advice also asked for clarification on whether the uplift to £7,500 will come with an increase in the overall budget, and how the government will prevent the money being taken up by households able to pay for a heat pump themselves at the expense of those who cannot1.

"We welcome the uplift in the maximum grant amount awarded under the Boiler Upgrade Scheme to £7,500, which was announced during the consultation period."
Citizens Advice, source1

On insulation conditions, Citizens Advice supported keeping Energy Performance Certificate requirements in the scheme, arguing that heat pumps should only go into appropriately insulated buildings because use in draughty homes raises electricity demand, bills and supply pressure1. It added that the requirement for an EPC with no outstanding loft or cavity wall insulation recommendations does not appear to be one of the more significant barriers to take-up, and that it is waiting for the separate consultation on changes to the Energy Performance of Buildings Regulations from the Department for Levelling Up, Housing and Communities1.

The response does not set out the specific grant amounts proposed for reduction, the measures affected, or the size of any budget change. Those figures are not reported in the response1.

Why it matters for households

The grant amount available under the scheme is the single figure most households weigh when considering a heat pump, and Citizens Advice's position is that £7,500 is the level that makes a difference while lower amounts for some applicants would not. Its argument on the EPC condition matters because that rule determines whether a home can access the grant at all before any insulation work is done, which is a question covered in the site's guide to the EPC and insulation requirement.

The charity's point about budget allocation goes to whether the scheme spreads support across households or concentrates it among those who would have installed a heat pump anyway. For a household weighing up a heat pump and its cost with the grant, the practical effect of any reduction in grant levels would be a larger upfront contribution, while the insulation conditions affect how much preparatory work is needed first. Citizens Advice is one of the energy consumer bodies that respond to government consultations on behalf of households.

What happens next

The response does not give a date for the government's decision on the consultation, and no outcome has been reported. Citizens Advice states that it awaits the DLUHC consultation on changes to the Energy Performance of Buildings Regulations1.

Sources1 cited
  1. Citizens Advice response to the DESNZ consultation on proposed amendments to the Boiler Upgrade Scheme - Cyngor ar Bopeth, citizensadvice.org.uk