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The UK Government has announced a series of measures under its "Warm Homes Plan" to make it easier for households to adopt heat pumps and improve energy efficiency. The initiative, led by the Department for Energy Security and Net Zero (DESNZ), aims to transition homes to clean heating technologies, reduce energy costs, and cut carbon emissions from building heating.
To encourage the uptake of heat pumps, the Government is committing an additional £30 million this financial year to boost grants under the Boiler Upgrade Scheme. Households can now receive up to £7,500 off the cost of installing a heat pump, addressing the significant price difference between heat pumps and conventional boilers.
Additionally, planning rules will be revised to remove the requirement that heat pumps be placed at least one meter from property boundaries, a move designed to simplify and make installations more accessible.
Significant Investments for Warmer Homes:
In the coming financial year, £1 billion will be invested in improving home insulation and efficiency, including upgrades for social housing and other properties. Thanks to contributions from social housing providers and energy suppliers, this figure is expected to rise to £3.2 billion by 2025/26. Officials estimate these efforts will benefit around 300,000 households, making homes warmer and cheaper to heat.
The Government highlights that households using heat pumps alongside smart electricity tariffs could save approximately £100 annually compared to gas boilers. Better insulation could reduce heating bills by £200 per year, providing environmental and financial benefits.
Clean Heat Market Mechanism:
From April 2025, the Government will introduce a reformed Clean Heat Market Mechanism, requiring 6% of boiler sales by manufacturers to be heat pumps. Manufacturers failing to meet this target will face a reduced charge of £500 per missed installation in the first year, a significant decrease from the originally proposed £3,000 penalty. The revised scheme aims to give manufacturers sufficient time to scale up supply chains and adapt to the growing demand for clean heating solutions.
A Path to Greener Homes:
These measures represent a pivotal step in the UK’s journey toward reducing carbon emissions in residential heating. By combining increased financial support, regulatory adjustments, and incentives for manufacturers, the Government seeks to make clean heating technology more accessible and affordable for households across the country.
Minister for Energy Consumers Miatta Fahnbulleh said: “The idea at the heart of our Warm Homes Plan is a simple one – all families deserve the security of a home they can afford to heat.
“But for too long, that has been out of reach for far too many people who have been left with draughty homes and sky-high bills.
“That is why we are taking immediate action today to make cleaner heating available to more households.”
The announcement received endorsements from boiler and heat pump manufacturers and installers.
Madeleine Gabriel, from the innovation agency Nesta, said, “Today’s announcements will make it easier for people to upgrade to heat pumps.
“This gives a clear signal to the public and industry that the Government is committed to supporting the transition to low-carbon heating.
“In particular, these changes rightly cut the red tape that was creating extra cost and hassle for homeowners and more work for local councils.
“Heat pumps are proven to be an efficient and reliable technology, and removing the ‘one-meter rule’ will make it easier for people to choose a low carbon future for their homes.”
Chris Galpin, energy expert at climate think tank E3G, said removing the one-metre rule would make heat pumps a viable option for thousands more homes, especially smaller terraced houses and flats where outdoor space is at a premium.
“But to help the majority of families get a heat pump, the Government needs to increase funding in the Spring Spending Review and take high charges off electricity bills – recovering costs fairly through general taxation instead.
“Making heat pumps more affordable would spark massive growth in the heat pump industry, give millions of working people the chance to lower their energy bills, and reduce our reliance on expensive, foreign gas imports,” he said.
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