The Department for Energy Security and Net Zero launched the Welcome Home to Energy Efficiency campaign on 23 October 2023, alongside an increase in Boiler Upgrade Scheme grants and a delay to the ban on fossil fuel boilers in off-gas-grid homes1. The campaign encourages households to improve home energy efficiency, with adverts across television, on-demand services, podcasts, print and billboards1.
Air source heat pump grants rose from £5,000 to £7,500, and ground source heat pump grants rose from £6,000 to £7,500. Households can still access £5,000 grants for biomass boilers1. The scheme has been extended by three years to 20281. The government said the Boiler Upgrade Scheme, already a £450 million funding pot, will also receive an allocation from the £6 billion allocated for energy efficiency and clean heat over 2025 to 2028, so the future budget is not fixed1.
The campaign recommends measures including checking loft and wall insulation, upgrading to a heat pump using the grant, and installing solar panels to power a heat pump1. Boiler Upgrade Scheme grants can be used alongside support from the £1 billion Great British Insulation Scheme for more than 300,000 homes in England, Wales and Scotland1. The government also made £10 million available through the Heat Pump Ready programme to support innovation aimed at cutting installation costs1.
The government is delaying the ban on installing oil and liquified petroleum gas boilers, and new coal heating, for off-gas-grid homes to 2035, instead of phasing them out from 20261. It said some of these homes are not suitable for heat pumps, and that this ensures homeowners are not having to spend around £10,000 to £15,000 on upgrading their homes in just three years' time1. The government has also set an exemption to the phase out of fossil fuel boilers, including gas, in 2035, so that households will not have to switch to a heat pump if their home is not suitable1.
"Welcome Home to Energy Efficiency will help people identify measures that will work for them, and in turn create street upon street of warmer homes."
| Measure | Grant or support |
|---|---|
| Air source heat pump | £7,500 (up from £5,000) |
| Ground source heat pump | £7,500 (up from £6,000) |
| Biomass boiler | £5,000 |
| Great British Insulation Scheme | £1 billion for more than 300,000 homes |
Why it matters for households
The grant increase changes the arithmetic on heating replacement for homes considering a heat pump. The government said estimates place the typical cost of buying and installing a gas boiler at between £2,500 and £3,000, and that starting prices for heat pumps can now be below this for some households when taking advantage of the grant and additional discounts offered by energy suppliers1. Customers do not have to apply for the grants; they agree a quote with an MCS certified installer, who does the paperwork, and Ofgem then contacts the customer to confirm they would like to proceed1.
For homes off the gas grid, the delay to 2035 removes the 2026 deadline for replacing oil, liquified petroleum gas and coal heating. The government said it will explore alternative approaches to decarbonising off-gas-grid homes via a consultation next year, and that the consultation will make clear it does not propose that any household installs a low carbon option which is not suitable for its home1. Homes may not be suitable for a heat pump if they need expensive energy efficiency upgrades, particularly solid wall insulation that can cost £10,000 to £15,000, or if they would need a significantly upgraded electricity connection that may not be feasible1.
The campaign's focus on insulation and solar panels alongside heating points to the fabric of the home as well as the heat source. The government said the most energy-inefficient homes can keep more of their heat indoors and replace inefficient gas boilers with the latest technology1. Consumers can give their home an energy efficiency MOT at a dedicated website, gov.uk/energy-efficient-home1.
What happens next
The Boiler Upgrade Scheme runs to 2028 following the three-year extension1. Organisations can bid for a share of the latest round of funding from the Net Zero Innovation Portfolio's Heat Pump Ready programme1. A consultation on alternative approaches to decarbonising off-gas-grid homes is to follow next year1. No further dates for the campaign itself have been reported.
Households in Scotland considering energy efficiency standards for privately rented homes can read our guide to the new energy efficiency standards for privately rented homes in Scotland, and further policy developments are covered in our regulation and policy hub.