Funding for heat pump grants in England and Wales could be cut to help pay for higher defence spending, according to The Guardian.
The newspaper reported on Monday, 12 October, that ministers were preparing to reduce funding for the Boiler Upgrade Scheme. Citing unnamed sources, it said hundreds of millions of pounds could be removed, although the scheme was not expected to close.
The government’s published Warm Homes Plan sets out around £2.7 billion for the scheme over the period to 2029/30. This is funding across several years.
The reported plans do not establish that individual grant amounts will be reduced. Published guidance checked on Monday continued to list the existing rates.
Confirmed savings target
A written ministerial statement published on 1 July confirmed that the Department for Energy Security and Net Zero would find an additional £2 billion in savings.
That contribution forms part of the funding arrangements for an extra £15 billion in defence investment between 2026/27 and 2029/30.
The statement said the energy department would reshape its investment budget while continuing to support clean power. It did not name heat pump grants as a source of the savings.
A department spokesperson told The Guardian that details of how essential national-security investment would be funded would be set out in the autumn. The response did not confirm the reported scheme cuts.
What property owners can currently receive
Current guidance from Ofgem lists £7,500 towards eligible air-to-water or ground-source heat pump installations.
Eligible properties without a mains gas connection can receive £9,000 when replacing heating oil or liquefied petroleum gas (LPG) systems. This higher rate is temporary and is available until 31 March 2027.
The scheme also offers £2,500 towards eligible air-to-air heat pumps in homes.
Ofgem administers the programme. Certified installers apply on behalf of property owners, and the grant is taken off the installation bill. It is not paid directly to the household.
Concerns over possible cuts
Madeleine Gabriel, a director at the innovation charity Nesta, warned that reduced support could hurt businesses and tradespeople who had invested in heat pump installation.
Octopus Energy chief executive Greg Jackson also warned of damage to the growing market. Their comments were reported by The Guardian.
The amount of any reduction, when it would start, and how it would affect applicants remain unconfirmed.
Trivane View
For property owners, the important question is whether future savings affect grant amounts, the number of grants available, or both. A smaller programme budget would not automatically mean a smaller grant for every applicant. Any announced change should be checked against its start date and the published application rules.
