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UK Government Boosts Heat Pump Grants: A Green Bank's Guide to Sustainable Heating

Want to heat your home more sustainably? Find out more about the UK Government's heat pump grant scheme and find out how you can heat y

In a significant move towards promoting sustainable and eco-friendly heating solutions, the UK government has recently increased the heat pump grants, making them one of the most generous schemes in Europe.

Increased Heat Pump Grants

On October 23, 2023, the UK government announced a substantial 50% increase in heat pump grants, raising the financial incentives for homeowners considering a shift to eco-friendly heating solutions. The updated grants now offer:

1. £7,500 towards an air source heat pump

2. £7,500 towards a ground source heat pump, including water source heat pumps and those on shared ground loops

3. £5,000 towards a biomass boiler

If you had previously applied for a grant before this date, and your installer has not yet fitted the heat pump, you can cancel your existing grant application and reapply to benefit from the increased grant amount. This boost in grants is a positive step towards making sustainable heating options more accessible to homeowners across the UK.

Understanding Heat Pumps

Heat pumps are energy-efficient heating systems that work by transferring heat from one place to another. They operate in a manner that is quite different from traditional heating systems, such as gas or electric boilers. There are two primary types of heat pumps:

1. Air Source Heat Pumps: These extract heat from the outside air and are suitable for most homes. They are often seen as a more affordable and practical option. There are two types of air source heat pumps known as a monobloc air source heat pump and a split air source heat pump.

2. Ground Source Heat Pumps: These harness heat from the ground or water sources, providing consistent and highly efficient heating.

Benefits of Heat Pumps

1. Environmental Benefits: Heat pumps are exceptionally eco-friendly. They produce far fewer greenhouse gas emissions compared to conventional heating systems, helping to reduce your carbon footprint and combat climate change.

2. Financial Advantages: Aside from the government grants, heat pumps can significantly reduce your energy bills. They are highly efficient, converting each unit of electricity into multiple units of heating, which translates into cost savings over time.

3. Easy Installation: Heat pump installation is relatively straightforward, and it can be integrated with your existing heating system. Plus, they require less maintenance compared to traditional heating systems.

4. Consistent Heating: Heat pumps provide consistent heating, maintaining a comfortable temperature in your home year-round.

Grant Eligibility

To be eligible for these grants, your heat pump system must meet certain standards, including minimum efficiency levels, which your installer can advise you on. Additionally, the system's maximum capacity should not exceed 45 kWth to qualify for the grant.

It's important to note that hybrid heat pump systems, which combine a gas boiler and an air source heat pump, are not eligible for grants.

Government Initiatives

The UK government is not only increasing heat pump grants but also taking additional steps to promote energy efficiency and sustainability:

1. Heat Pump Ready Programme: A £10 million fund has been allocated to the Heat Pump Ready Programme, supporting innovation in the heat pump sector to reduce installation costs and make them even more accessible.

2. 'Welcome Home to Energy Efficiency' Campaign: This new campaign is aimed at helping people enhance the energy efficiency of their homes and lower their energy bills during the winter season, aligning with the transition to cleaner heating systems.


The increase in heat pump grants in the UK is a significant stride towards a greener, more sustainable future. Heat pumps not only reduce your carbon footprint but also provide long-term financial benefits. With easy installation and government support, making the switch to a heat pump is more enticing than ever.

If you're considering a more eco-friendly and cost-effective heating solution for your home, now is the perfect time to explore the advantages of heat pumps. At Tandem Bank, we're here to assist you in your journey towards a more sustainable and energy-efficient home. Find out more about heat pumps and our partners here.

1 https://www.gov.uk/apply-boiler-upgrade-scheme/what-you-can-get

2 https://www.gov.uk/government/news/heat-pump-grants-increased-by-50-per-cent

3 https://www.gov.uk/government/news/five-reasons-to-get-a-heat-pump

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