Heat Pumps: Finance

(asked on 8th July 2026) - View Source

Question to the Department for Energy Security & Net Zero:

To ask the Secretary of State for Energy Security and Net Zero, what recent steps he has taken to make heat pump installation more (a) accessible and (b) affordable for home owners.


Answered by
Martin McCluskey Portrait
Martin McCluskey
Parliamentary Under-Secretary of State (Department for Energy Security and Net Zero)
This question was answered on 17th July 2026

The Government is taking significant steps to make heat pumps more accessible and affordable for homeowners, demonstrated by the record installation levels set in both 2024 and 2025.

The Boiler Upgrade Scheme (BUS) provides grants of up to £7,500 for all eligible households in England and Wales, and we recently announced a £1,500 uplift for properties heated by oil and LPG. We recently expanded scheme eligibility to include air-to-air heat pumps, which are generally cheaper to install.

The Warm Homes: Local Grant and the Warm Homes: Social Housing Fund also provide fully-funded heat pumps to low-income households,

The Warm Homes Plan committed to a new low-interest consumer loans scheme – backed by £2bn public funding – which will provide further support with upfront costs. We will provide more details soon.

The Government has reformed planning rules to make it easier to install heat pumps under permitted rights, and we’re working with industry to reduce costs, which have fallen by around 11% in real terms since BUS launched in 2022.

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