The UK government is enhancing the Boiler Upgrade Scheme with a £30 million boost, providing £7,500 grants for households to install heat pumps, making the transition to cleaner energy more affordable.

Heat pumps work by extracting heat from the air, ground, or water to heat water for radiators and hot water cylinders, presenting an efficient alternative to traditional heating methods.

Energy Consumers Minister Miatta Fahnbulleh highlighted that the initiative aims to ensure affordable heating access for all families, especially those living in poorly insulated homes.

Households utilizing a smart electricity tariff alongside heat pumps could save an additional £100 annually, while improved insulation could further reduce energy bills by up to £200.

Although heat pumps have a higher initial purchase and installation cost compared to gas boilers, they can lead to substantial long-term savings on energy expenses.

The Department for Energy Security and Net Zero (DESNZ) has launched a 'warm homes plan' to promote clean heating technologies and enhance home insulation across the UK.

According to a government announcement, UK households could save around £100 each year by switching from gas boilers to heat pumps.

A new clean heat market mechanism will require boiler manufacturers to ensure that 6% of their sales are heat pumps, with penalties for non-compliance, while government support will be available for compliant installations.

In addition to the grants, the government plans to amend planning regulations to ease the installation of heat pumps by reducing distance requirements from property boundaries.

Looking ahead, the government intends to allocate approximately £3.2 billion in funding for warmer homes in the 2025/26 fiscal year, aiming to assist around 300,000 households in the UK.

The Boiler Upgrade Scheme also includes grants for other heating options, such as £5,000 towards biomass boilers, targeting households replacing fossil fuel systems.