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Up to 300,000 households will benefit from home upgrades over the next year as the government announces new measures to help reduce energy bills and deliver cleaner heating.
The plans include increasing the budget for the Boiler Upgrade Scheme to support more households in switching to heat pumps, which can save families around £100 annually when used with a smart tariff. Additionally, more homes will receive insulation, potentially saving homeowners £200 a year.
Minister for Energy Consumers, Miatta Fahnbulleh, stated: “Our Warm Homes Plan ensures all families have the security of a home they can afford to heat. For too long, many have been left with draughty homes and high bills. We are taking action now to make cleaner heating more accessible.”
The package includes:
– A £7,500 heat pump grant for homeowners in England and Wales through the Boiler Upgrade Scheme, which saw record applications in October.
– The removal of the 1m rule for air source heat pumps in England, making installation easier and addressing planning permission issues that have deterred 34% of potential customers.
– Energy efficiency upgrades, including insulation and low-carbon heating, for social housing, low-income households, and renters through the Warm Homes: Social Housing Fund and Warm Homes: Local Grant.
Industry leaders have welcomed the measures. Carl Arntzen, CEO of Worcester Bosch, said: “We are hopeful these steps will make heat pumps a more realistic alternative for homeowners.”
Henrik Hansen, managing director of Vaillant Group UK, added: “Easing installation requirements is a positive step in increasing heat pump adoption.”
Jan Rijnen, managing director of Baxi Heating, also welcomed the funding boost and changes to planning rules, noting that further improvements to the Clean Heat Market Mechanism are needed to decarbonise homes.
This is a significant step in the government’s goal of reducing emissions and lowering household energy use across the UK.
