The National Federation of Builders has welcomed the recently announced proposals from the Department for Energy Security and Net Zero to expand the Boiler Upgrade Scheme and further investment in green skills as part of the Government’s Warm Homes Plan.
According to DESNZ, “demand for heat pumps is surging,” with the Boiler Upgrade Scheme – which offers up to £7,500 off the cost – having enjoyed its best month since opening, with 4,028 applications received in March 2025, up 88% on the same month last year. In news that should be welcomed by the merchant sector, with more households wanting to make the upgrade to cleaner, homegrown energy, the Government has now launched a new consultation on expanding the Boiler Upgrade Scheme “to give families even greater choice to pick what works best for them.”
Richard Beresford, Chief Executive of the National Federation of Builders, commented: “The NFB has long advocated for such reforms, particularly for air to air heat pumps, to ensure we can remain technologically agnostic in our approach to the net zero transition. The announced considerations are a significant step towards that goal, and we commend the Government for listening to industry recommendations and taking meaningful action to support the net zero transition on existing homes.”
The proposed expansion of the scheme could involve the inclusion of more types of heat pumps, such as air to air heat pumps and electric heating technologies, e.g. heat batteries, which are currently ineligible for grants. Additionally, the Government will consider new heat pump purchase options for consumers, for example hire purchase and leasing to make low-carbon heating more accessible.
The Government has also set out plans to train up to 18,000 more home retrofitters and install insulation, solar panels and heat networks.
Rico Wojtulewicz, Head of Policy for the NFB, added: “Air to air heat pumps dominate continental installs and so we always thought it strange that the Tory government decided to focus only on air to water systems. The new Labour government are seeking to rectify that error of judgement and have also sought views on heat batteries, another solution the NFB spent eighteen months lobbying to be included under the BUS.
“The benefits to existing homes are clear but if the consultation results in air to air and heat batteries being included in the BUS and even Clean Heat Market Mechanism (CHMM), there will be knock on benefit to the new build sector as the solutions they offer, for instance cooling and air quality, might inform out of date Building Regulations, thus ensuring the Future Homes Standard (FHS) is deliverable at scale.”
He continued: “We must not always frame net zero as a carbon story. Electrification offers more efficiency, cleaner power, healthier homes and stimulates technological innovation, but it is impossible to deliver with one solution. We therefore hope this is the first step of many to have a net zero plan which is practicable and not led by ideologues.”
