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25 Oct 2021

£5,000 Govt funding to be offered to homeowners | 50five

By Oliver
  • over 2 years ago
  • Read time: 2 minutes
From April 2022 homeowners across England and Wales will be eligible for subsidies worth £5,000 to help them make the switch from gas boilers to low-carbon air source heat pumps.

UPDATE: From Monday 23rd October 2023 a newly increased grant amount of £7,500 will be available for air source and ground source heat pumps.

Target Zero

As part of the UK Government’s efforts to reduce green-house emissions to net zero by 2050 the £450m being allocated comes as part of a £3.9bn package targeted at helping to decarbonise public buildings, insulating, and installing new heating systems in social housing for those on low incomes, and helping to provide clean energy networks for homes that are unsuitable for heat pumps.

The plan also includes:

  • £3.45bn to decarbonise buildings in England and Wales including social housing and district heating schemes.

  • £60m to drive technological innovation to develop clean heating systems that are smaller, easier to install and cheaper to run. This money will come from a previously announced innovation fund.

The funding has been welcomed by many British industries as the Government announces that no new gas boilers are to be installed after 2035, making the aim for the future very clear.

The Government will encourage everyone whose boiler needs replacement to switch to heat pumps with no requirements needing to be met for fund eligibility. They are yet to announce any details on how homeowners can apply for this funding.

What is a heat pump and how much do they cost?

A heat pump is any system that can change the environment's temperature either from high to low or vice versa. Refrigerators and air conditioners are some of the most popular devices used around us that make use of heat pumps. Electricity is the primary propelling energy, and many countries are now embracing energy-efficient heat pumps that use less energy compared to traditional heat pumps.

Heat pumps use heating and cooling systems to change the vibration of air molecules to regulate temperature. They do not produce their air.

Typically, an air source heat pump can cost anywhere in the range of £6,000 to £18,000. The price mostly depends on the home’s current heating system.

It is also worth considering that when having an air source heat pump installed, it is highly recommended that the home already be as energy efficient as possible. This can mean ensuring your home is as well insulated as possible with products such as wall insulation, loft insulation and triple-glazing.

How ASHP works

RHI Funding

A current stream of funding already exists for air source heat pumps, the Renewable Heat Incentive. This funding is available for all homeowners currently living in England, Scotland and Wales and can help massively towards the affordability of an air source heat pump.


Written by Oliver

Oliver is a Content Specialist for 50five UK