Heat Pump Grants Could Be Cut: What Essex Homeowners Need to Know Before the Budget
Heat pumps have been in the headlines all week. On 12 October, the first day of National Heat Pump Week, The Guardian reported that ministers are preparing to cut hundreds of millions of pounds from the Boiler Upgrade Scheme, the grant that helps households in England and Wales swap a gas or oil boiler for a heat pump. Then on 16 October the government published new proposals to push heating manufacturers to sell far more heat pumps. If you've been thinking about low-carbon heating, here's what's going on and what it could mean for your home.
What's happening to the Boiler Upgrade Scheme?
According to The Guardian, the Department for Energy Security and Net Zero has been asked to find more than £2bn of savings to help fund defence spending, and part of that is expected to come from the scheme's £2.7bn five-year budget. Its sources say the scheme won't be scrapped altogether. Nothing is confirmed yet. The department says the savings are a small part of its overall budget and that it will set out how it will fund this investment in the autumn, with many in the industry expecting more detail in the Budget on 28 October.
What grants can you get right now?
For now, the scheme is open and GOV.UK lists these grants, one per property:
Air source heat pump: £7,500
Ground source heat pump: £7,500
Air-to-air heat pump: £2,500. This is the same kind of technology as a modern air conditioning system that can also heat your home.
Off-gas homes: until March 2027, an extra £1,500 towards an air source or ground source heat pump if your home is heated by oil or LPG and has no mains gas connection.
The way it works is simple. An MCS certified installer checks you're eligible and applies to Ofgem on your behalf, and the grant comes straight off the price on your quote and invoice. The i reports the scheme has supported nearly 80,000 installations since 2022.
Could heat pumps get cheaper anyway?
Possibly. The new consultation on the Clean Heat Market Mechanism proposes raising manufacturers' heat pump targets from 8% of their relevant boiler sales in 2026-27 to 18% by 2030-31. Industry insiders told the i this could lead to lower prices as manufacturers compete, much like the discounts seen under the electric vehicle mandate. These plans are only proposals and are not final, and nobody can promise what prices will do.
Should you act now or wait?
We'd never pressure anyone into a big decision, but it's worth knowing the grant levels above are what's on offer today, and the government hasn't said what, if anything, will change. If a heat pump or air-to-air system is already on your list, getting a survey and quote now means you know exactly where you stand before the Budget. A quote costs you nothing and doesn't commit you to anything.
Pair it with solar to cut running costs
A heat pump runs on electricity, so the price you pay per unit matters. Under the current Ofgem price cap, electricity averages 26.32p per kWh for households paying by Direct Debit. Solar panels and battery storage let you make and store your own power, which can help bring down the running costs of a heat pump or air conditioning system. As a trading name of CPW Electrical Solutions Ltd, we can also check that your consumer unit and wiring are ready for the extra load.
Heat pumps, air conditioning and solar across Essex and East London
Winsolar designs and installs solar PV, battery storage, heat pumps, air conditioning and EV chargers for homes and businesses across Upminster, Brentwood, Basildon, Chelmsford, Romford, South Essex and East London.
Want to know your options before the Budget? Call us on 07545 571230 or use our website contact form for a free, no-obligation quote.
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