The package includes a significant expansion of the Boiler Upgrade Scheme to £2.7?billion, maintaining grants of up to £7,500 and widening support to air-to-air heat pumps and emerging technologies such as heat batteries. Ministers have also confirmed a universal offer combining £2.7?billion in grants and £2?billion in low-interest loans to help households install heat pumps, solar panels and home batteries, alongside a new £5?billion Warm Homes Fund designed to support British manufacturers and drive down costs.
Industry figures broadly welcomed the scale of the commitment, while highlighting areas where further clarity and action will be needed. Sachin Vihbute, HVAC and Heat Pumps Technical Consultant and Product Training Manager at LG, said the plan “puts serious weight behind clean heat, with a £2.7bn commitment to the Boiler Upgrade Scheme that could be a real turning point for heat pump adoption.” He cautioned, however, that while funding and ambition are clear, the plan is “lighter on the practical measures needed to help heat pump installations scale at pace,” adding that long-term policy certainty and clearer consumer guidance will be essential to give households and installers confidence. Vihbute also stressed the importance of skills, noting that manufacturers are already investing in development and training, but that “without enough qualified people to deliver these upgrades, progress risks falling short of its potential.”
The Heat Pump Association’s Chief Executive, Charlotte Lee, said the £15?billion commitment “sends a strong signal to both industry and consumers that the shift to clean, affordable, electrified heat remains a priority for this Government.” She welcomed the plan’s recognition of heat pumps as a “proven, scalable solution” capable of lowering bills and emissions, and highlighted the strengthened support for low-income households and the expanded Boiler Upgrade Scheme as evidence of a focus on making low-carbon homes accessible to all. Lee also pointed to gaps, describing it as “a missed opportunity not to see the same for the decarbonisation of Commercial and Public Sector buildings” and calling for further action to address the high price of electricity relative to gas. She said the sector now awaits the Future Homes and Buildings Standard Regulations, which she described as essential to underpin demand and unlock investment.
Hamid Salimi, Head of Residential Products at Daikin UK, said the Warm Homes Plan “will accelerate progress towards net zero” by making it cheaper to install and run low-carbon heating. He highlighted the value of pairing heat pumps with solar PV and battery technologies and welcomed the ability to apply for a low- or zero-interest loan on top of the Boiler Upgrade Scheme grant, which he said would encourage more households to invest. Salimi also praised the fully funded upgrades for low-income households, describing them as vital to ensuring a fair transition, but urged the Government to “take early and decisive steps to reduce the price of electricity,” which he said remains a barrier to electrification across domestic, commercial and industrial heating.
Beyond financial support, the Warm Homes Plan includes measures to cut electricity costs from April, with average heat pump users expected to save more than £200 a year and high-use electric storage heating households saving £442. The Government has also reaffirmed the Future Homes Standard, requiring new homes to be built with high energy efficiency, solar panels and clean heat systems as standard. A new Warm Homes Agency will guide consumers and coordinate delivery, while reforms to Energy Performance Certificates aim to reflect the benefits of electrified heating better. The plan also strengthens consumer protections and introduces regulation of heat networks.
Fuel poverty remains a central focus, with £5?billion targeted at low-income households and continued support through the £150 Warm Home Discount. Ministers expect the measures to lift one million households out of fuel poverty. The plan is also positioned as an economic stimulus, with the Government forecasting 180,000 additional jobs in energy efficiency and clean heat. A new target requires 70?per cent of heat pumps sold in the UK to be manufactured domestically, backed by £90?million in investment grants and £30?million for innovation, alongside expanded training programmes for heating engineers and installers.