Government increases Boiler Upgrade Scheme budget by £50m as demand for heat pumps grows: comment

The Government has increased the Boiler Upgrade Scheme budget by £50m, after the demand for heat pumps has grown in the last few months.

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By Jess Ralston

info@eciu.net

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Commenting on the announcement that the Government has given Ofgem permission to over-allocate vouchers for heat pumps under the Boiler Upgrade Scheme by up to £50 million in this financial year, to a total of up to £200 million [1], after demand for the £7,500 grant for heat pumps has grown in recent months [2], Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit (ECIU) said:

"Heat pump demand is growing in the UK, boosting our energy independence as every electric heat pump installed reduces our reliance on gas, which will increasingly come from abroad as the North Sea continues its inevitable decline. The UK was so badly hit by the gas crisis partly because 85% of our homes use gas for heating, a mistake we can't afford to repeat if there's a future gas price spike.

"Ignoring any potential calls from the gas boiler industry to delay or scrap other heat pump policies like the Clean Heat Market Mechanism will be important for growing the market even further and ensuring that households are no longer exposed to volatility in international gas markets that the UK will never have control over."


Notes to editors:

1. Approval to over-allocate vouchers for the Boiler Upgrade Scheme, October 2024: https://www.gov.uk/government/publications/boiler-upgrade-scheme-approval-to-over-allocate-vouchers/approval-to-over-allocate-vouchers-for-the-boiler-upgrade-scheme-october-2024
2. Boiler Upgrade Scheme statistics, August 2024: https://www.gov.uk/government/statistics/boiler-upgrade-scheme-statistics-august-2024

For more information or for interview requests:

George Smeeton, Head of Communications at ECIU, Tel: 07894 571 153, Email: george.smeeton@eciu.net