The UK Government has expanded its Boiler Upgrade Scheme to include a £2,500 discount for air-to-air heat pumps, offering households a new low-carbon heating option that provides both winter warmth and summer cooling. The government announced the expansion this week, aiming to make sustainable heating more accessible, particularly for residents in flats or smaller homes without central heating.
The scheme now covers air-to-air heat pumps alongside existing grants of up to £7,500 for air source or ground source heat pumps and £5,000 for biomass boilers. Households installing both an air-to-air system and a traditional heat pump could access up to £10,000 in total support. The initiative forms part of the government's £13.2 billion Warm Homes Plan, which targets bill reductions for five million families.
Minister for Energy Consumers Martin McCluskey said: "Air-to-air heat pumps offer the best of both worlds – keeping you warm in winter while cooling you down when summer comes along." He added that the government wants to ensure "[...] as many people as possible can benefit, especially those in flats or small homes without central heating, so they have greater choice when upgrading their property."
The scheme also now includes discounts for heat batteries, with government consultation underway on other clean heating solutions including thermal storage, infrared panels and renewable fuels.
Who qualifies
Eligible properties in England and Wales must have an existing fossil fuel heating system or electric heating without a heat pump, plus a valid Energy Performance Certificate issued within the last ten years. The scheme limits maximum installation capacity to 45kWth. The scheme excludes most new builds and social housing, as well as properties that already received funding for heat pump or biomass boiler installations.
For biomass boilers specifically, properties must be off the gas grid, in a rural location, and the boiler must have an emissions certificate showing minimum polluting emissions. Ofgem guidance determines rural location criteria.
Industry welcomes expansion
Charlotte Lee, Chief Executive of the Heat Pump Association, said the scheme "[...] has played a vital role in accelerating the transition to low-carbon heating, giving thousands of households access to clean, efficient technologies and helping to build the UK supply chain." She called for ambitious budget allocation under the Warm Homes Plan to ensure continued success.
Andrew Sissons, Deputy Director of Nesta's sustainable future mission, noted: "As we're faced with a warming climate, it's important that people have the financial support to both heat and cool their homes sustainably."
Abigail Ward, Policy Manager at Energy Saving Trust, emphasized that accelerating low-carbon heating rollout is "[...] key to cutting carbon emissions and reducing our reliance on volatile fossil fuels, one of the root causes of high energy bills."
How to apply
Householders should contact an MCS-certified installer for a quote. The installer applies for the grant through the Ofgem website on behalf of the property owner, with the grant amount deducted from installation costs. Ofgem may contact applicants to confirm installer authorization and potentially visit properties to check installations. Further application details are available on GOV.UK.
Note: This article was created with Artificial Intelligence (AI).
