£3.2bn Boost for Green Heating: 300,000 UK Homes to Benefit

Article written by: Tim Mooney

300,000 homes will benefit from the new government initiative next year, with more funding for homes to take on green alternatives to gas.

The plan will increase the funding available through the Boiler Upgrade Scheme (BUS), which currently offers up to £7,500 for households to install heat pumps. This scheme has been allocated a further £30mn, alongside almost doubling the budget for grant vouchers to £295mn for the next financial year.

In total, there will be roughly £3.2bn of investment into warmer homes between 2025 and 2026, focussing on social housing providers and energy suppliers to support green transitioning for households.

In another bid to encourage the uptake of heat pump technologies, planning permissions in England are being adjusted. In particular, the 1m rule will be removed, reflecting research from Octopus stating 34 per cent of those who order a heat pump are discouraged or cancel plans for planning permission issues. Previously, the 1m rule meant heat pumps had to be installed at least 1 metre from a property’s boundary.

As for social housing and lower income households and renters, funded energy efficiency upgrades will be made available with an emphasis on insulation and low-carbon heating.

In order to support the transition, the government will be boosting investment in British manufacturing to service new demand. £5mn has been given to Ideal Heating to boost heat pump production, which will generate jobs and strengthen the UK’s green heating supply chain.

It is hoped the new plans will cut household emissions and slash energy bills, particularly for those most financially vulnerable, all the while boosting the UK’s green technology sector with new projects and demand.

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