The government is looking to improve the Boiler Upgrade Scheme by expanding the range of heating technologies available for grants, as well as offering new heat pump purchase options.
Technologies such as air-to-air heat pumps and heat batteries, which are not currently eligible under the Boiler Upgrade Scheme, could be included under proposals now open to consultation.
Other proposals are designed to make low-carbon heating systems more accessible by reducing the upfront cost for households. New payment models under consideration include leasing options and instalment plans, which would allow people to spread the cost of installation over time.
Under the plans, homeowners could lease a heat pump for a monthly fee instead of paying for it outright – similar to car finance agreements. Other options may allow costs to be spread over several years, potentially increasing access to low-carbon heating systems for more families.
The changes are part of the government’s Warm Homes Plan and come as official figures show demand surging for heat pumps. The Boiler Upgrade Scheme – which offers up to £7,500 off the cost – saw its best month since opening, with 4,028 applications received in March 2025, up 88% on the same month last year.
“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,” says Minister for Energy Consumers Miatta Fahnbulleh. “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.”
In addition to the proposed scheme expansion, ministers have announced plans to train up to 18,000 new workers to install low-carbon home upgrades, including insulation, solar panels, and heat networks. The training initiative is being supported through an extension of the Heat Training Grant and the new Warm Homes Skills Programme.
A separate investment of £4.6 million has also been confirmed for a facility in Copeland, Northern Ireland, to increase domestic production of heat pump components. The funding is expected to support local jobs and strengthen the UK’s supply chain for low-carbon heating technology.
The consultation, which opened on 30 April, is inviting views from industry, installers, manufacturers and consumers on how to make the scheme more flexible and accessible. It will run for several weeks before final proposals are confirmed. Ministers have indicated they are particularly interested in feedback on which technologies to include, how new ownership models could work in practice, and how best to ensure households are protected from poor installation or performance.
“Following a record year for UK heat pump sales in 2024, we warmly welcome today’s announcements which will continue to support growth in the sector and increased deployment of clean heating,” comments Charlotte Lee, CEO at the Heat Pump Association. “The additional funding to support those wishing to become qualified to install heat pumps and heat networks is especially welcome, alongside proposals to expand the Boiler Upgrade Scheme to make clean heating solutions an accessible option for more consumers.”
Garry Felgate, chief executive of The MCS Foundation, adds: “Consumer confidence in low-carbon technologies is growing, with more households installing heat pumps across the UK than ever before. Today’s announcements will help to accelerate that trend, by ensuring more people can access heat pump grants and supporting the growth of the heat pump workforce. These steps are very welcome news, enabling lower bills, lower carbon emissions, and sustainable jobs.”
The proposals have also received support from manufacturers.
Russell Dean, deputy divisional manager at Mitsubishi, comments: “Better funding models and greater investment in skills are exactly what’s needed to meet the increasing demand for renewable energy in homes. Growing the number of trained heat pump engineers is critical to meeting that demand.”
While backing the ambitions of the Warm Homes Plan, Martyn Bridges, director of external affairs at Worcester Bosh, expressed disappointment that the proposals have not gone further:
“We are pleased to see the acknowledgment that consumers need different heating solutions for different properties, but unfortunately there is no mention of hybrid heating systems which is disappointing as we feel this technology provides a solution for the many homes with combi boilers installed.”
