Families across the UK could soon have greater flexibility when upgrading their home heating systems, thanks to new government proposals aimed at boosting green energy and lowering
household costs.
As part of the Warm Homes Plan—a key pillar of the government’s wider Plan for Change—homeowners may be offered a wider range of heating technologies, including air-to-air heat pumps and heat batteries, which are not currently eligible for grants. The government is also considering new payment options, such as leasing or spreading the cost of a heat pump over time, to make the transition more affordable.
This move follows a surge in demand for heat pumps. In March 2025, the Boiler Upgrade Scheme, which offers grants of up to £7,500, received 4,028 applications—an 88% increase compared to the same month last year. When paired with smart energy tariffs, heat pumps can cut energy bills by around £100 per year.
To support this momentum, a consultation has been launched on expanding the Boiler Upgrade Scheme, giving families more choice in how they switch to low-carbon heating.
At the same time, the government is investing in the future workforce needed to deliver these upgrades. Up to 18,000 new training places will be created for professionals to retrofit homes and install green technologies like heat pumps, insulation, solar panels, and heat networks. This effort is being supported by the extension of the Heat Training Grant and the launch of the Warm Homes Skills Programme.
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.
In a further boost to the UK's green economy, Copeland in Northern Ireland will receive £4.6 million to expand domestic manufacturing of key heat pump components, reducing reliance on imported technology and supporting local jobs. This funding, matched by Copeland’s own multi-million pound investment, will help build a stronger UK supply chain and enhance energy security.
Additionally, ministers are urging tenants and landlords to contribute to a consultation closing in three days on new energy efficiency standards in privately rented homes. The proposal would require landlords to upgrade properties to at least an EPC C rating by 2030—up from the current minimum of EPC E. This is expected to make homes warmer and more affordable, potentially lifting up to one million households out of fuel poverty by the end of the decade.
These initiatives aim to not only help families cut energy costs but also ensure the UK meets its climate targets while creating thousands of skilled green jobs.