Home > News > Heat pump grant boosted by 50% to England and Wales

Heat pump grant boosted by 50% to England and Wales

The government is increasing its air source heat pump grants for homeowners in England and Wales by 50% to £7,500 from Monday amid criticism about the slow adoption of the low-carbon technology.

The £2,500 in extra support – on top of the £5,000 offered – aims to take the cost of installing an air source heat pump below the average gas boiler.

Support for installing ground source heat pumps – unsuitable for most homes in the UK as they require access to a large outdoor space – will increase from £6,000 to £7,500.

The rise, announced by the prime minister, Rishi Sunak, last month alongside the watering down of a planned ban on new gas boilers by 2035, comes after the government faced criticism from the National Infrastructure Commission (NIC) on its home heating policies.

Heat pumps are critical to meeting the UK’s 2035 climate targets by halving the carbon emissions from heating buildings, which still account for almost one-quarter of the UK’s fossil fuel demand.

However, the government’s stated ambition for 600,000 heat pumps to be installed every year by 2028 has struggled to find public support due to the high upfront costs of installations and a lack of clear information.

The NIC said last week that the current rate of heat pump installation is “not cutting the mustard”, and the scheme’s funding needs to increase if more households are to benefit. According to PA, the scheme’s current budget is underspent as households baulk at the cost and complexity of switching.

The infrastructure tsars called on the government to spend up to £4bn every year for the next 12 years to cover the full cost of heat pump installations and support energy-efficiency improvements for the 1.5 million households on the lowest incomes in England.

It also said the better off should be given access to 0% finance to cover additional costs beyond the heat pump grant and for further funds to be invested in updating social housing heating systems.

The commission said that around 8m buildings will need to switch from gas boilers, which heat around nine in 10 English properties, to cleaner alternatives by 2035 to meet the UK’s 2050 net zero target.

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