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Heat pump grant worth £5,000 to replace gas boiler

Low carbon more efficient heating systems such as heat pumps will be no more expensive – and in many cases may end up cheaper – to buy and run than gas boilers, under government plans being announced on Monday 18 October 2021.

Through the Heat and Buildings Strategy, the government has set out its plan to incentivise people to install low-carbon heating systems in a simple, fair and cheap way as they come to replace their old boilers over the coming decade. This will significantly reduce the UK’s dependency on fossil fuels and exposure to global price spikes, whilst supporting up to 240,000 jobs across the UK by 2035.

New grants of £5,000 (heat pump grant) will be available from April next year to encourage homeowners to install more efficient, low carbon heating systems – like heat pump 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 as if they were installing a traditional gas boiler.

The £450 million Boiler Upgrade Scheme is part of more than £3.9 billion of new funding being announced today by the government for decarbonising heat and buildings. This will fund the next 3 years of investment through the Social Housing Decarbonisation Fund, the Home Upgrade Grant scheme, the Boiler Upgrade Scheme and the Heat Networks Transformation Programme and reducing carbon emissions from public buildings through the Public Sector Decarbonisation Scheme.

The £3.9 billion of new funding for decarbonising heat and buildings from 2022 to 2025 will be broken down as follows:

  • £1.425 billion through the Public Sector Decarbonisation Scheme
  • £950 million for the Home Upgrade Grant scheme
  • £800 million for the Social Housing Decarbonisation Fund
  • £450 million for the Boiler Upgrade Scheme
  • £338 million for the Heat Network Transformation Programme

How to apply for the heat pump grant?

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 next April.

What are the costs of ground-source heat pump (GSHP) & air-source heat pump (ASHP)?

Currently an air source heat pump costs between £8,000 and £20,000, depending on the type of the pump ( and manufacture) and the size of a property.

More information about Heat pump grant and Boiler Upgrade Scheme?

Visit gov website: -> Plan to drive down the cost of clean heat

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