£6000 towards home upgrades

You can now apply for free £6,000 towards home upgrades

Millions of people in the UK can now apply to get a free £6,000 payment from the government towards home upgrades. To get the cash, you'll need to own your own home and live in England or Wales. It comes as the Government plans to ban gas boilers in all new build properties from 2025. The scheme opened yesterday, and aims to encourage more Brits to switch to heat pumps. Under current plans, the Government wants to ban gas boilers in all new build properties from 2025. The installation of gas boilers could then be phased out entirely from 2035, as part of its plans to reach net zero by 2050.

The plans to ban gas boilers are still proposals at this stage. It is thought households would only have to switch to another energy source once their existing gas boiler has stopped working.

Heat pumps are seen as the most favourable option to replace gas boilers. They work essentially like a fridge in reverse, with these devices extracting warmth from the air or the ground, or from water. But of course, one of the main stumbling blocks for many homeowners is that heat pumps aren’t cheap to install. This is where the Boiler Upgrade Scheme comes in, as it could help you cover some of the costs. The Energy Saving Trust estimates that a heat pump can cost £6,000 to £8,000, while MoneySavingExpert puts the figure at £10,000 to £12,000. This means you’d need to stump up potentially another £1,000 to £7,000 on top of the grant for the installation.

How to apply for the Boiler Upgrade Scheme

The Boiler Upgrade Scheme is part of a £450million fund being provided by the Government. Through the initiative, most households who are eligible will be able to apply for £5,000 off the cost and installation of an air source heat pump or biomass boiler. But houses that need heat pumps where heat is sourced from the ground will receive £6,000. To apply for the Boiler Upgrade Scheme, you must live in England or Wales and own your property.

You home will need to have an installation capacity up to 45kWth, and a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. If you have an insulation exemption, you may be able to apply too. You don't apply for the Boiler Upgrade Scheme grant yourself - instead, you need to find an MSC-certified installer to claim the grant on your behalf. Homeowners can find the cheapest and nearest tradesman on the MSC website - make sure you compare prices to get the best quote. Once you agree a price, the installer will then apply for the grant. You'll then be contacted by Ofgem to confirm that the work is being done on your behalf. The scheme is available from now until 2025.

Will a heat pump save you money on energy bills?

It depends on what type of boiler you are replacing, and how old it is - but on the whole, the answer is yes if you’ve got a really old heating system.

According to consumer champion Which?, you could save up to £1,410 a year if you’re replacing an old inefficient (G-rated) LPG boiler with a heat pump.

This is based on figures from the Energy Saving Trust. It also suggests the savings you’d get from replacing an old storage heater would be £1,330, or £435 for an old (G-rated) oil boiler.

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