Government confirms major funding boost for heat pump installations
The UK Government has confirmed a major boost in funding for low-carbon heating, with £13.2bn now set aside for the Warm Homes Plan. That’s double the previous commitment, and it’s a clear sign of just how seriously this agenda is being taken.
The extra investment will make a real difference. It means more support for homeowners, social housing landlords and local authorities to improve energy efficiency and move away from fossil fuel heating.
Boiler Upgrade Scheme to receive yearly increases
One of the biggest takeaways is the increased funding for the Boiler Upgrade Scheme, which is now set to rise year on year through to 2029/30. This long-term commitment gives homeowners, landlords and installers more certainty when planning a switch to low-carbon heating.
The scheme is designed to reduce the upfront cost of installing a heat pump, and the grant—currently set at £7,500—can make a real difference. For many households, it brings the cost of switching much closer to that of replacing a gas boiler, helping to remove one of the main barriers to adoption.
With the added benefit of lower running costs and improved energy efficiency over time, the scheme is a strong incentive for anyone considering the move to a more sustainable heating system.
What else is included in the new funding package?
There’s more to the announcement than just the Boiler Upgrade Scheme. Other highlights include:
Continued funding for the Warm Homes: Local Grant, helping local authorities deliver upgrades for lower-income households through to 2027/28
Fresh investment into the Warm Homes: Social Housing Fund, supporting upgrades for tenants across the UK
Increased funding for the Heat Network Efficiency Scheme (HNES), expanding clean heating solutions in densely populated areas
Momentum building for heat pumps
Earlier this month, we shared news that all new build homes in England will soon be required to have solar panels as standard. Now, with a major funding boost confirmed, it’s even clearer that the government is stepping up its efforts to cut carbon emissions across the board.
The timing is no coincidence. This fresh wave of investment arrives just as the Future Homes Standard is set to come into force. From this year, newly built homes will no longer be allowed to use gas boilers. Instead, developers will need to install low-carbon systems such as air source or ground source heat pumps as standard.
This shift in regulation and funding signals a real turning point. It creates an environment for heat pump adoption to accelerate, not only in new build developments but across retrofit projects as well.
At Alto Energy, we’re already helping homeowners, installers and developers navigate this change. From tailored system design to MCS support and expert funding guidance, we’re here to support you every step of the way.
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