The government has announced changes to the Boiler Upgrade Scheme, removing insulation requirements for heat pump grants, aiming to ease installation and reduce costs for households.
Under the updated scheme, homeowners will no longer be obligated to install cavity wall or loft insulation to qualify for grants, which can amount to £7,500 towards heat pump installation costs.
This move is expected to substantially reduce the financial burden associated with transitioning from traditional gas boilers to more sustainable heating options, particularly for semi-detached properties where costs could decrease by approximately £2,500.
In addition to these changes, Energy Security Secretary Claire Coutinho has called for a review of competition within the home heating market by the Competition and Markets Authority (CMA).
This initiative aims to assess the dominance of four major companies controlling 90% of the market and ensure that consumers receive optimal outcomes.
Furthermore, plans to introduce the Clean Heat Market Mechanism (CHMM) have been postponed until April 2025 to safeguard consumer interests.
The CHMM, designed to incentivise the adoption of cleaner heating technologies such as heat pumps, will be subject to further evaluation to protect consumers from potential market disruptions.
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.”
