The Government is introducing updates to two key energy funding schemes, offering financial support for low-carbon heating installations and assistance for households facing fuel poverty.
The Boiler Upgrade Scheme currently provides up to £7,500 to replace a property’s boiler with a low-carbon heat pump. Meanwhile, the Warm Home Discount (WHD) scheme gives a one-off £150 rebate to households struggling with fuel costs.
Planned Changes to the Boiler Upgrade Scheme
The Government plans to expand the scheme to cover a wider variety of heating technologies. Following a consultation, it intends to include funding for air-to-air heat pumps (AAHPs), which can both heat and cool homes.
Landlords will also now be eligible to participate, not just owner-occupiers. Under the updated measures, landlords can receive a £2,500 grant towards installing an AAHP. Given that the average AAHP costs around £3,000, this grant will cover a significant portion of the installation expense.
The scheme will continue to offer up to £7,500 for traditional air-source and ground-source heat pumps. Over time, the Government also intends to support other technologies, such as heat batteries, at the same £2,500 level once product standards and installation requirements are confirmed. Efforts are also underway to simplify the certification process for these installations.
Warm Home Discount Updates
The Government is looking to broaden eligibility for the WHD so more households can receive support. It also plans to simplify administration by automatically enrolling most eligible recipients, with payments made directly to households, reducing the need to navigate complex application procedures.
In response to the consultation, we expressed strong support for these changes, noting that a simpler system is a positive step to ensure aid reaches those who need it most. We also emphasised that tenants in bills-included tenancies should not be excluded from receiving support.
At the same time, we highlighted that the discount cannot serve as a long-term solution. We called on the Government to increase investment in lasting measures that improve the energy efficiency of UK homes, such as insulation upgrades, modern heating systems, and other retrofit improvements.
Minimum Energy Efficiency Standards (MEES)
Another consultation is ongoing regarding new minimum energy efficiency standards. Under these proposals, rental properties would be required to achieve a minimum EPC rating of C to be legally let.
Landlords may face costs of up to £15,000 per property to meet the new standards, with around 2.4 million homes potentially affected.
These updates reflect the Government’s ongoing efforts to improve the sustainability of the UK’s housing stock while providing targeted support for households struggling with energy costs.
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