Heat pump subsidy of £7,500 not making its way to the majority of households remains an issue
The UK government has announced a series of changes to its Boiler Upgrade Scheme (BUS), aiming to increase accessibility and reduce barriers for households switching to low-carbon heat pumps.
The Boiler Upgrade Scheme, which offers £7,500 grants to help households transition to heat pumps, has faced challenges in reaching many households. Some households have reported paying over £1,000 in fees just to have installers handle grant paperwork, while others have given up due to a maze of paperwork and poor advice.
To address these issues, the proposed changes include:
- Increased grant amounts: As of 2025, the heat pump grants have been boosted to £7,500 for both air source and ground source heat pumps. This represents a 50% increase for air source systems and a 25% increase for ground source systems, significantly improving the affordability of installations for homeowners in England and Wales.
- Expansion of eligible technologies and payment options: The scheme has been expanded to cover new heat pump technologies and to offer more flexible payment options, helping more households to access funding suited to their specific needs.
- Simplified planning permission rules: A government reform removed the requirement for planning permission for most heat pump installations, specifically when units are placed within one metre of a property boundary. This has reduced installation delays and made it easier and quicker for households to switch to low-carbon heating.
These changes aim to increase financial support, broaden the scheme’s applicability, and streamline regulatory hurdles, all aimed at encouraging greater uptake of heat pumps to support heat decarbonisation targets in the UK.
The UK Government's recent move to relax planning rules around heat pump installations has led to a 54% increase in grant applications during early 2025. However, the Boiler Upgrade Scheme still faces barriers for many households in accessing it.
A recent YouGov survey found that 75% of UK adults are unwilling to pay more than £5,000 for a heat pump, even after grants are taken into account. The Heat Pump Association has called the announcement a "positive step," but stressed that meaningful growth will only come if electricity pricing and financing models are rebalanced.
Experts warn that without deeper reform, the Boiler Upgrade Scheme risks falling short of its climate goals and locking out the people who need it most. The Heat Pump Association and other stakeholders will be closely watching the consultation process to ensure the Boiler Upgrade Scheme remains accessible to homeowners to meet the goal of 600,000 heat pumps each year.
The Boiler Upgrade Scheme still needs to remain accessible to homeowners to meet the goal of 600,000 heat pumps each year, but the proposed changes represent a step in the right direction towards a low-carbon future.
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