30 April 2025
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Homeowners are set to have more choice over ways to access heating systems and bring down costs under proposals being considered as part of the Warm Homes Plan – helping to deliver on the Government’s milestone of higher living standards as part of the Plan for Change.
As part of the Warm Homes Plan, proposals under consideration would give working families greater choice in upgrading their home heating systems. This includes access to new products such as air-to-air heat pumps and heat batteries, along with expanded purchase options for heat pumps. Up to 18,000 professionals are expected to be trained to retrofit homes and install heat pumps, insulation, solar panels, and heat networks. This initiative coincides with a £4.6 million Government investment in Copeland to manufacture more heat pump parts at home in the UK.
March 2025 was said to be the best month yet for the Boiler Upgrade (BUS) scheme, with 4028 applications received. This was up 88% on the same month last year.
Changes to the scheme
The new consultation on expanding the BUS scheme could see families potentially access air-to-air heat pumps and electric heating technologies such as heat batteries, which are currently not eligible for grants under the scheme. This is alongside new purchase and ownership options which could spread the cost of a heat pump over several years, or give households the opportunity to lease one for a monthly fee instead.
The Government has also set out plans to bolster the ‘clean power army’, training up to 18,000 more home retrofitters, to install heat pumps, insulation, solar panels and heat networks, alongside a major new deal to support the UK’s heat pump supply chain.
Minister for Energy Consumers Miatta Fahnbulleh said: “Our Warm Homes Plan will mean lower bills and warmer homes for millions of families – helping drive better living standards as part of the Plan for Change.
“Following a record-breaking month for applications to our Boiler Upgrade Scheme, we are now proposing to give working families more choice and flexibility to pick the low-carbon upgrades that work best for them.
“And on top of this, we are investing over £4 million in Copeland to continue building a homegrown heat pump industry and training up the army of skilled workers we need to achieve this.”
£4.6 million awarded for expansion
Copeland in Northern Ireland have been awarded £4.6 million to expand their manufacturing for heating compression technology – a key component of heat pumps, which can help protect family finances from the roller coaster of international gas markets by running on clean electricity.
This investment will help to support the industries and jobs of the future, while unlocking economic growth, as part of the Prime Minister’s Plan for Change.
More skilled workers
Ministers have also unveiled plans to train up to 18,000 skilled workers to install heat pumps, fit solar panels, install insulation and work on heat networks through the extension of the Heat Training Grant and launch of the Warm Homes Skills Programme.
Under the proposals, all private landlords would be required to meet a higher standard of Energy Performance Certificate (EPC) C or equivalent in their properties – up from the current level of EPC E, by 2030.
This will deliver on the priorities of working people, in line with the Prime Minister’s Plan for Change, by requiring landlords to invest in measures such as loft insulation, cavity wall insulation or double glazing – ensuring homes are warmer and more affordable for tenants. Alongside higher standards & funding in the social rented sector, this could lift up to one million households out of fuel poverty by 2030.
Some industry leaders provided their comments on the announcement.
Charlotte Lee, CEO at the Heat Pump Association said: “Following a record year for UK heat pump sales in 2024, we warmly welcome today’s announcements which will continue to support growth in the sector and increased deployment of clean heating.
“The additional funding to support those wishing to become qualified to install heat pumps and heat networks is especially welcome, alongside proposals to expand the Boiler Upgrade Scheme to make clean heating solutions an accessible option for more consumers.”
Russell Dean, Deputy Divisional Manager at Mitsubishi Electric said: “The continued support by Government for clean heat, the Boiler Upgrade Scheme and training is welcome.
“Better funding models and greater investment in skills are exactly what’s needed to meet the increasing demand for renewable energy in homes. Growing the number of trained heat pump engineers is critical to meeting that demand.
“The drive for installers to upskill is there. Recent research commissioned by Mitsubishi Electric shows that 72% of installers agree that providing greener options to homeowner will help their business to be more profitable. Hence, the government’s plan to train 18,000 new installers is a welcome step, not just for the environment, but for the economy too. Among those already fitting heat pumps, 73% of installers say they’ve seen higher earnings, more high-value work, or improved profit margins.”
Ian Rippin, CEO at MCS, said: “It’s crucial that homeowners are supported in making the move to low carbon technology. Alongside financial support, this means giving consumers confidence in the ability of these technologies to heat and power their homes.
“As the UK’s quality mark for renewable energy technologies like heat pumps, MCS sets product and installation standards to give consumers that confidence, and it is a requirement of the Boiler Upgrade Scheme that installations are MCS certified.
“To provide assurance for alternative low carbon heating systems, MCS is currently developing an installation standard for thermal energy storage systems (TESS), or heat batteries. This is to ensure consumers investing in renewable heating systems can be confident in the quality of their installation, across a range of technology types.”
Options being considered to help spread the installation cost of a heat pump include:
- Hire purchase, giving households the option to pay for a heat pump in instalments, meaning they would own the equipment at the end of their contract
- Hire purchase plus, combining paying for a heat pump in instalments with a separate contract for an energy tariff, allowing providers to simplify costs into a single monthly payment
- Leasing, offering households the option to lease a heat pump for a set amount of time, like leasing a car. At the end of the contract, households would either enter into another agreement to continue leasing the heat pump, or would replace it
To read the proposals in full visit: <Bold URL> www.gov.uk/government/news/families-to-get-more-choice-over-home-upgrades
To find out more
Further information on the Heat Pump Investment Accelerator award to Copeland can be found here: Heat Pump Investment Accelerator Competition successful projects
The Warm Homes Skills Programme will deliver up to 9,000 training places across England, providing opportunities for people to develop skills in areas including fitting solar panels and installing insulation. More details can be found here: Warm Home Skills Programme.
An extra £5 million will be provided to continue the Heat Training Grant until March 2026, supporting a further 5,500 heat pump installers and 3,500 heat network professionals. The Grant has already trained over 10,650 individuals up to the end of March 2025. More details can be found here: Apply for the Heat Training Grant: discounted heat pump training.
More details on the Heat Training Grant: Heat Network training can be found here: Training providers: apply to offer the Heat Training Grant for heat networks
The Government’s consultation on minimum energy efficiency standards for private rented sector homes can be found here: Improving the energy performance of privately rented homes: consultation document
