Announced by the Department for Energy Security and Net Zero (DESNZ), the move is part of the Warm Homes Plan, which aims to provide upgrades to 300,000 homes next year by installing clean heating tech and insulation.
An extra £30m has been committed to this financial year’s pot that gives households £7,500 off the cost of a heat pump. The Government said a heat pump can save households about £100 per year compared to a gas boiler by using a smart tariff effectively, while insulation can potentially save homeowners about £200 per year.
The Government is changing planning rules that require households to submit a planning application in England when installing an air source heat pump. It is also removing the ‘1m rule’ that requires heat pumps to be at least one metre from the property boundary.
Figures from Octopus Energy show that 34% of those who order a heat pump are discouraged or drop out for reasons attributed to planning permission.
Removing ‘unnecessary red tape is an urgent priority’
Greg Jackson, CEO of Octopus Energy, said: “More than a third of customers who order a heat pump drop out because of planning issues, leaving them stuck with dirty, inefficient gas boilers. Removing outdated and unnecessary red tape is an urgent priority to grow this sector and get low-cost, safe, clean heating technology into British homes.”
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Under the revamped Warm Homes Scheme, social housing residents, lower-income householders and renters will be able to receive funded energy-efficiency upgrades, including insulation and low-carbon heating. This will be funded via the Warm Homes: Social Housing Fund and Warm Homes: Local Grant respectively.
The Government said the Warm Homes Plan “will ensure millions more households benefit from homegrown energy delivered by every new turbine, solar panel or pylon built on the path to energy independence.”
Miatta Fahnbulleh, minister for energy consumers, said: “The idea at the heart of our Warm Homes Plan is a simple one – all families deserve the security of a home they can afford to heat.
“But for too long, that has been out of reach for far too many people who have been left with draughty homes and sky-high bills. That is why 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 announcement comes the day before energy regulator Ofgem announces the energy price cap that will apply from 1 January to 31 March 2025. The latest predictions suggest the cap will rise from £1,717 to £1,736.
Ministers say that Putin’s illegal invasion of Ukraine exposed years of overreliance on international gas markets, but that the Government is now “overturning this legacy by investing in homegrown, cleaner energy free from the control of dictators.”
