Demand for heat pumps is surging, with the Boiler Upgrade Scheme – which offers up to £7,500 off the cost, enjoying its best month since opening, with 4,028 applications received in March 2025, up 88 per cent on the same month last year. Heat pumps can save families around £100 on their average energy bills when used with a smart tariff
With more households wanting to make the upgrade to cleaner, homegrown energy, the government has today launched a new consultation on expanding the Boiler Upgrade Scheme to give families even greater choice to pick what works best for them.
Changes could see families potentially access air-to-air heat pumps and electric heating technologies such as heat batteries, which are currently not eligible for grants under the scheme, alongside new purchase and ownership models which could spread the cost of a heat pump over several years, or give households the opportunity to lease one for a monthly fee instead.
As part of the government’s Plan for Change, even more households will be able to take up the offer of switching to low-carbon heating, while protecting the pounds in people’s pockets by making more options available.
government has also set out plans to bolster the ‘clean power army’, training up to 18,000 more home retrofitters, to install heat pumps, insulation, solar panels and heat networks, alongside a major new deal to support the UK’s heat pump supply chain.
Minister for Energy Consumers Miatta Fahnbulleh said: '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.
“Following a record-breaking month for applications to our Boiler Upgrade Scheme, we are now proposing to give working families more choice and flexibility to pick the low-carbon upgrades that work best for them.
“And on top of this, we are investing over £4 million in Copeland to continue building a homegrown heat pump industry and training up the army of skilled workers we need to achieve this.”
Copeland in Northern Ireland have been awarded £4.6 million to expand their manufacturing by 240,000 compressors – a key component of heat pumps, which can help protect family finances from the rollercoaster of international gas markets by running on clean electricity.
This investment, backed by an additional £6.4 million from Copeland, will create sixty new jobs in Cookstown, helping to support the industries and jobs of the future, while unlocking economic growth, as part of the Prime Minister’s Plan for Change.
Ministers have also unveiled plans to train up to 18,000 skilled workers to install heat pumps, fit solar panels, install insulation and work on heat networks through the extension of the Heat Training Grant and the launch of the Warm Homes Skills Programme.
With three days to go until the government’s consultation on introducing higher minimum energy efficiency standards in private rented sector homes closes, Ministers have issued a final call for tenants and landlords to make their views heard.
Under the proposals, all private landlords would be required to meet a higher standard of Energy Performance Certificate (EPC) C or equivalent in their properties – up from the current level of EPC E, by 2030.
This will deliver on the priorities of working people, in line with the Prime Minister’s Plan for Change, by requiring landlords to invest in measures such as loft insulation, cavity wall insulation or double glazing – ensuring homes are warmer and more affordable for tenants. Alongside higher standards & funding in the social rented sector, this could lift up to one million households out of fuel poverty by 2030.
Charlotte Lee, chief executive at the Heat Pump Association said: “Following a record year for UK heat pump sales in 2024, we warmly welcome today’s announcements which will continue to support growth in the sector and increased deployment of clean heating.
“The additional funding to support those wishing to become qualified to install heat pumps and heat networks is especially welcome, alongside proposals to expand the Boiler Upgrade Scheme to make clean heating solutions an accessible option for more consumers.”
Martyn Bridges, Director of External Affairs at Worcester Bosch said: 'We welcome the Warm Homes Plan and its ambition, we’re particularly pleased to see the introduction of training grants that will fund 18,000 training delegates, 5,500 of which will be heat pump training course attendees.
'We are also pleased to see the acknowledgment that consumers need different heating solutions for different properties and that a forthcoming consultation on the Boiler Upgrade Scheme could see the inclusion of air to air heat pumps and heat batteries.
'Unfortunately there was no mention of hybrid heating systems which is disappointing as we feel this technology provides a solution for the many homes with Combi boilers installed.'