The Department for Energy Security and Net Zero (DESNZ) has revealed the latest updates to the Warm Homes Plan, which aims to improve the energy efficiency of homes in the UK.
From early next year, households will be able to install an air source heat pump without obtaining planning permission, with DESNZ removing the requirement that air source heat pumps be installed at least one metre away from a property, in an effort to boost the uptake of low-carbon heating. Statistics from utility Octopus Energy also reveal that 34% of people who order a home heat pump drop out before it is installed as a result of frustrations and difficulties with the planning system.
In a further effort to boost the uptake of home heat pumps, DESNZ will increase the budget for the Boiler Upgrade Scheme (BUS) by £30 million this financial year and will almost double the budget to £295 million next financial year. The BUS provides householders with funding of up to £7,500 to install a heat pump in their home, and has proved immensely popular; the latest DESNZ data reveals that September 2024 was the second-highest month for BUS applications since the scheme began, with 3,223 applications received in September.
Additionally, the government will consult on introducing new minimum energy efficiency standards for rented properties from 2030 in an effort to push landlords to upgrade their properties. While rumours of plans to raise the minimum Energy Performance Certificate (EPC) rating for rental homes from E to C had been circulating under the previous Conservative government for several years, these plans were not formally confirmed by the new Labour government until August of this year.
Minister for energy consumers Miatta Fahnbulleh said: “We are taking immediate action today to make cleaner heating available to more households. This follows our plan to lift over one million households out of fuel poverty by consulting on boosting minimum energy efficiency standards for all renters by 2030, delivering warmer homes and cheaper bills.”
The UK government is also planning to launch two funds specifically for social housing residents, lower income householders, and renters. The Warm Homes: Social Housing Fund and Warm Homes: Local Grant funding will help fund insulation and low-carbon heating for those in the aforementioned demographics.
In April 2025, a reformed Clean Heat Market Mechanism (CHMM) will be introduced to ensure that heat pump manufacturers have the time and support needed to scale up their supply chains to supply the ever-growing demand for heat pumps. Additionally, over £5 million will be invested into heat pump firm Ideal Heating as the first award from the Heat Pump Investment Accelerator competition, which seeks to boost the UK’s own heat pump manufacturing sector through strategic investments.
CEO of Energy UK Dhara Vyra expressed support for the plans, noting: “This is a clear recommitment to heat decarbonisation, which will play a vital role in improving energy security and reducing our reliance on gas. The BUS is enabling consumers to install heat pumps at record rates, with demand for low carbon technologies increasing.”
Dr Simon Cran-McGreehin, head of analysis at the Energy and Climate Intelligence Unit (ECIU) said: “Bills will remain high throughout the winter and likely beyond so efforts to help households insulate so they can use less energy will need to ramp up in the years ahead if family finances aren’t to falter in the face of ongoing high prices.
“Households being helped to switch to heat pumps, away from boilers, is essential if the UK is not to become increasingly dependent on foreign gas as the North Sea, moratorium or not, continues its decline. Research suggests that 6,000 manufacturing jobs could be in jeopardy if the UK is slow to transition to heat pumps.”
