Through the Heat and Buildings Strategy, the government has set out its plan to incentivise people to install low-carbon heating systems as and when gas and oil boilers come due for replacement over the next 10 years. The scheme will make a significant contribution to the installation of a low carbon, energy efficient heating system.

The new scheme will encourage people to install high efficiency heat pumps, which run on electricity and extract energy from the air or ground. Recent volatile gas prices across the world have demonstrated the need for the UK to build a secure, home-grown energy sector which supports households to reduce their reliance on fossil fuels while protecting consumers and businesses from unforeseen price spikes.

The new grants of £5,000 for air source and £6,000 for ground source heat pump installations will be available from April 2022 to encourage homeowners to install heat pumps that do not emit carbon when used  through a new £450 million 3-year Boiler Upgrade Scheme. These grants mean people choosing to install a heat pump will pay a similar amount to installing a traditional gas boiler.  The Government will encourage everyone whose boiler needs replacing to switch over to heat pumps. There is currently no mandatory requirement for people with working boilers to make the switch.

The Government is yet to announce precise details of how to apply for the grant, which will be available to homeowners in England and Wales from April.  More information on the scheme will be announced in the coming months.