Working families could soon have more affordable and flexible options to upgrade their home heating under new proposals announced as part of the government’s Warm Homes Plan.
The plan aims to boost energy efficiency, expand clean energy technology and support jobs across the country.
The government is considering an expansion of the Boiler Upgrade Scheme, which already offers up to £7,500 toward the cost of a heat pump.
Proposed changes could allow families to access technologies like air-to-air heat pumps and heat batteries, currently ineligible for grants and introduce leasing or payment plans to spread installation costs.
With demand for heat pumps growing rapidly—March 2025 saw a record 4,028 applications, up 88% from the same time last year—the move is expected to make the transition to low-carbon heating more accessible.
“Our Warm Homes Plan will mean lower bills and warmer homes for millions of families – helping drive better living standards as part of the Plan for Change,” said Minister for Energy Consumers Miatta Fahnbulleh.
The government is also investing £4.6 million in Copeland, Northern Ireland, to boost domestic manufacturing of heat pump components.
The funding, matched by £6.4 million from Copeland, will expand compressor production and create 60 new jobs in Cookstown.
In addition, the government has announced plans to train up to 18,000 professionals to install heat pumps, insulation, solar panels and more.
This includes extending the Heat Training Grant and launching the new Warm Homes Skills Programme.
The announcement comes as the government’s consultation on raising energy efficiency standards in the private rental sector nears its close.
Proposed regulations would require all privately rented homes to reach EPC ‘C’ by 2030, potentially lifting up to one million households out of fuel poverty.
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