The government says that heat pumps will become cheaper and easier for families to install as proposed changes to the Boiler Upgrade Scheme came into effect this week.

The revised scheme will see homeowners given more choice in how they improve their home and will no longer have to install cavity wall or loft insulation to use the scheme, which offers grants of £7,500 off the cost of heat pump installation.

According to the government, removing mandatory cavity wall and loft insulation could reduce the costs associated with installing a heat pump on a semi-detached property by around £2,500, making it easier for homeowners to switch from gas boilers in a way that works for them, while still cutting emissions.

Energy Security Secretary, Claire Coutinho, said: “We’ve already supported families by making our Boiler Upgrade Scheme one of the most generous in Europe and now we’re making heat pumps even cheaper and easier to install.

“This is all part of our wider plan to ensure we cut our emissions and make homes more energy efficient without burdening families with high costs.”

Daniel Särefjord, CEO of clean energy-tech solution firm Aira UK, said: “Heat pumps do the same job as gas or oil boilers, they heat water and distribute this around your home to keep your property and water warm.

“The difference is that heat pumps are 4 x more efficient and technologically more advanced than gas or oil boilers; a new Aira Heat Pump will therefore help families save up to 25% on their heating-related costs and reduce their household heating-related emissions by 75%.

“Heat pumps will free families to spend more of their income on non-heating related expenses, reduce the country’s gas use – which is responsible for a third of the UK’s emissions – and help to insulate the country from future international gas price shocks, such as the skyrocketing costs that we experienced following Russia’s invasion of Ukraine.

“For households that previously required loft or cavity wall insulation to secure the BUS grant, this policy change will make the installation of a heat pump £2,500 cheaper on average, allowing people to choose when to upgrade their home insulation and making heat pump ownership even more budget friendly.”

The changes to the Boiler Upgrade Scheme, which were announced in March, follow the sustained surge in applications after heat pump grants were increased by 50% last autumn. The average monthly number of applications from November 2023 to January 2024 has been 39% higher than the monthly average before the uplift, the government says.