The UK Government is offering £7,500 grants to help households switch to low-carbon heat pumps, but many still can’t access them.
Recent rule changes have helped increase applications, but red tape, upfront costs, and installer shortages remain major barriers.
Planning reform sparks uptake, but only for some
The government’s recent move to relax planning rules around heat pump installations has delivered a clear impact.
Research from energy company Aira found a 54% increase in grant applications during early 2025, after planning permission was no longer required for most heat pump installations near property boundaries.
Installers say this change cut delays significantly, as previously, up to 40% of projects were held back by planning permissions; now it's closer to 5–10%.
Is the Boiler Upgrade Scheme too complicated?
Even with planning delays reduced, many households still face barriers accessing the Boiler Upgrade Scheme.
The application process is often described as time-consuming and confusing, especially when it comes to proving eligibility.
Households must get an EPC showing insulation is up to standard, gather multiple installer quotes, and in some cases, pay thousands upfront before receiving the grant.
A recent YouGov survey, commissioned by the Energy and Utilities Alliance, found that 75% of UK adults are unwilling to pay more than £5,000 for a heat pump - even after grants are taken into account.
A June 2025 analysis by Nesta found that only a small fraction of eligible households had attempted to apply. Many gave up due to “a maze of paperwork and poor advice.” Some reported paying over £1,000 in fees just to have installers handle grant paperwork.
Consultation could lead to major overhaul
In response to growing pressure, the government has launched a consultation that could reshape how the scheme works.
Proposed changes include expanding the list of supported technologies - such as air-to-air heat pumps and thermal batteries - as well as allowing for leasing or subscription models, rather than requiring homeowners to pay full installation costs upfront.
The Heat Pump Association, responding to the announcement, called it a "positive step", especially following the confirmation of £1.545 billion in BUS funding through to 2028.
However, they stressed that meaningful growth will only come if electricity pricing and financing models are rebalanced to make low-carbon heating genuinely competitive with gas.
Either way, even with increased funding the heat pump grant scheme needs to remain accessible to homeowners if the government wants to meet its goal of 600,000 heat pumps each year.
