Government announces changes to heat pump grant scheme

Changes have been made to the Boiler Upgrade Scheme, which are intended to make heat pumps cheaper and easier for families to install.

The scheme offers grants of £7,500 off the cost of heat pump installation.

Homeowners are set to have more choice over how they improve their home and will no longer have to install cavity wall or loft insulation to use the scheme.

It is hoped that removing these recommendations could reduce the costs associated with installing a heat pump on a semi-detached property by around £2,500.

The energy security secretary has called on the Competition and Markets Authority (CMA) to review the boiler industry to consider whether it is working as well as it should and delivering the best outcomes for customers. There are four companies dominating 90 per cent of the market.

Energy Security Secretary, Claire Coutinho, said: "We’ve already supported families by making our Boiler Upgrade Scheme one of the most generous in Europe and now we’re making heat pumps even cheaper and easier to install.  

"This is all part of our wider plan to ensure we cut our emissions and make homes more energy efficient without burdening families with high costs."

Heat pump grants were increased by 50 per cent last autumn and the average monthly number of applications has increased 39 per cent since then.