Air-to-air heat pumps added to Boiler Upgrade Scheme

The UK government has expanded its Boiler Upgrade Scheme (BUS) to include air-to-air heat pumps, marking the first time air-conditioning style units will be eligible for public subsidy. The change could reshape energy planning for housebuilders by introducing a dual heating and cooling option into the mainstream retrofit and new-build market.

Effective from 18 November, households can now access grants of up to £2,500 to install air-to-air heat pumps - a technology that heats in winter and cools in summer. Previously, only air-source and ground-source systems qualified for support under BUS.

The Department for Energy Security and Net Zero says the update is designed to increase consumer choice, particularly for homes without existing central heating. The move comes as part of the government’s £13.2 billion Warm Homes Plan and follows a record month for heat pump applications in September.

Martin McCluskey MP, Minister for Energy Consumers, described the technology as offering "the best of both worlds," stating: "With heat pumps more popular than ever, we want to make sure as many people as possible can benefit, especially those in flats or small homes."

The policy also introduces support for heat batteries, which store electricity-generated heat for later use. Both technologies are expected to improve options for lower-carbon heating systems in homes where traditional installations may not be suitable.

The Heat Pump Association welcomed the expansion. Chief Executive Charlotte Lee said the decision to broaden the scheme "is an important step in offering consumers more choice," and noted that the BUS has already played "a vital role in accelerating the transition to low-carbon heating."

She added that long-term success will depend on funding certainty: "An ambitious budget allocation under the Warm Homes Plan will be key to ensuring that the scheme continues to deliver for households and industry, supporting jobs and long-term investment."

The expansion coincides with a government consultation on additional low-carbon heating alternatives, including infrared panels, renewable liquid fuels, and thermal storage solutions. Grant support for heat batteries will commence once product and installation standards are finalised.

The typical installation cost of an air-to-air heat pump in a small home or flat is around £4,500, meaning the new grant can offset most of the upfront expense. As air-conditioning becomes a more visible component of future-proofed housing, the decision signals a shift in policy that may influence future building standards and consumer expectations.