- Families could save around £2,500 off upfront costs, with
insulation no longer required to access heat pump grants
- government calls for the Competition and Markets Authority to
review competition in the home heating market
- implementation of the Clean Heat Market Mechanism has been
scrapped until April 2025
Heat pumps will be cheaper and easier for families to install as
part of changes to the government’s Boiler Upgrade
Scheme.
Homeowners will have more choice in how they improve their home
and will no longer have to install cavity wall or loft insulation
to use the scheme, which offers grants of £7,500 off the cost of
heat pump installation.
Removing mandatory cavity wall and loft insulation could reduce
the costs associated with installing a heat pump on a
semi-detached property by around £2,500, making it easier for
homeowners to switch from gas boilers in a way that works for
them, while still cutting emissions.
This comes as the Energy Security Secretary stands up against
recent price rises by boiler manufacturers. She has called on the
Competition and Markets Authority (CMA) to review the
industry - which has 4 companies dominating 90% of the market –
to consider whether it is working as well as it should and
delivering the best outcomes for customers.
This follows on from government proposals to introduce the Clean
Heat Market Mechanism (CHMM) – a market incentive
that aims to introduce more heat pumps: a clean energy source
that provides more efficient, cleaner home heating. The Energy
Secretary has delayed the implementation of CHMM until April 2025 in
order to protect consumers.
Energy Security Secretary, , said:
We’ve already supported families by making our Boiler Upgrade
Scheme one of the most generous in Europe and now we’re making
heat pumps even cheaper and easier to install.
This is all part of our wider plan to ensure we cut our emissions
and make homes more energy efficient without burdening families
with high costs.
The move to improve the Boiler Upgrade Scheme follows the
sustained surge in applications after heat pump grants were
increased by 50% last autumn. The average monthly number of
applications from November 2023 to January 2024, has been 39%
higher than the monthly average before the uplift.
Properties should still be appropriately insulated so families
can heat their homes for less and save money on their bills.
Removing the mandatory requirement will mean households can
spread changes out at a pace that works for them, so families
aren’t hit with one large bill.
This is part of the government’s pragmatic approach to net zero
that helps families make changes and doesn’t price them out from
cutting their carbon footprint.
They can also get government support with energy efficiency
through the Great British Insulation Scheme and Energy Company
Obligation (ECO),
which are set to help up to 700,000 families install home
improvements such as insulation by March 2026.
This comes on top off new rules on gas boiler standards which
will support families not yet ready to switch to a heat pump,
helping them cut their bills and emissions.
As part of the government’s pragmatic approach to net zero, the
changes to boiler efficiency standards will save households
around £450 on their energy bills over the 15-year lifetime of
their boiler. They could also save 21 million tonnes of
CO2 by 2050, the equivalent
of taking nearly 9 million cars off the road for a
year.
The updated boiler standard will mean that from 2026, gas boilers
have improved heating controls. And, from 2028, combi boilers
will use less energy – increasing efficiency, while reducing wear
and tear by preventing them from working harder than they need
to.
Notes to editors
We have published the following:
The government has launched the Welcome Home to Energy
Efficiencycampaign, helping consumers identify ways to make
their homes more energy efficient. The campaign promotes the
government’s Boiler Upgrade Scheme grant as well as highlighting
the wider efficiency measures that can work together to help save
money on bills.
A Statutory Instrument will not be laid to bring in the Clean
Heat Market Mechanism targets this year.
