14 November 2025
|
Hundreds of thousands of homeowners are expected to lose access to government subsidies for eco-friendly heat pumps under new measures aimed at reducing energy bills in the upcoming budget.
Chancellor Rachel Reeves is preparing to unveil a package of policies designed to ease energy costs, amid concerns that persistent cost-of-living pressures are pushing voters towards Reform UK. According to sources familiar with the budget planning, one proposal involves removing energy-efficiency levies from household bills and instead funding them through the government’s existing Warm Homes programme.
This shift would significantly narrow eligibility for heat-pump grants, currently worth up to £7,500, so that only households receiving specific benefits could apply. Supporters argue that the bulk of these subsidies have been going to middle-class homeowners who could have afforded the upgrades without government support. Energy experts, however, warn that scaling back the scheme will slow the transition away from gas boilers toward cleaner, though more expensive, heat-pump technology.
Currently, the Boiler Upgrade Scheme (BUS) is set to run until 2028, with a new closing date of March 31, 2028. The scheme was originally scheduled to end in 2025, but was extended with additional funding confirmed until that date.
- Original end date: 2025
- Revised end date: 2028 (Specifically, March 31, 2028)
- Extension details: The extension is supported by additional funding that was announced in December 2023.
- Eligibility: Low-carbon heating systems commissioned on or after April 1, 2022, are eligible for funding under the scheme, as long as they are installed before the scheme's closing date.
