Thousands of households missing out on £5,000 free cash to help reduce energy bills | The Sun

THOUSANDS of households are missing out on £5,000 free cash to help reduce energy bills.

The help is available under the Boiler Upgrade Scheme which allows people to switch to a heat pump.

The scheme was first introduced last year in a bid to help households become more energy efficient.

You could get up to £5,000 to switch your boiler to a more eco-friendly one and save on your energy bills.

The £450million scheme was set up to fund the switch and cover the costs of installation.

The latest government figures released last week have revealed that only 9,888 vouchers have been dished out since May and December 2022.

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This is 20,112 shy of its annual target of 30,000.

At the current rate, by March 2025 the scheme is set to have only issued 42,000 vouchers in total.

Below we explain more about the scheme and how you can take part.

What is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme is a £450million fund that offers grants to homeowners in England and Wales to purchase heat pumps.

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You can apply for £5,000 off the cost and installation of an air source heat pump or biomass boiler.

Homeowners can also get £6,000 off the cost and installation of a ground source heat pump.

In total the scheme is aiming to pay for 90,000 installations and will run until the end of March 2025.

What is a heat pump?

Heat pumps work like a fridge but in reverse.

They take in heat from the air outside, even when it is cold, and use it to warm a liquid refrigerant and turn it into a gas.

This is then compressed and transferred to a central heating system to warm radiators.

They heat your home at a lower temperature than gas and oil boilers, which could reduce your energy bills.

How does a heat pump work?

There are two types of air-source heat pumps, air-to-water systems and air-to-air systems.

Unlike gas boilers, heat pumps work on electricity and need less energy to operate.

This means lower emissions and hopefully cheaper bills as you won't be using as much energy.

Typically for every one unit of heat in, you get three out, according to the Energy and Climate Intelligence Unit (ECIU).

In contrast, for a typical gas boiler, for every one unit of heat in, you get less than one out.

This means that, overall, more than three times less energy is needed to operate a heat pump compared with a boiler.

How much do heat pumps cost?

Heat pumps can be quite costly and have stopped households from buying them in the past.

While homeowners can purchase boilers from between £500 to £1,500, the Energy Saving Trust estimates that a heat pump can cost £6,000 to £8,000.

But it is hoped that the grants from the Boiler Upgrade Scheme will take some of the strain away from people.

You will need to pay the difference if the pump costs more than the grant but the idea is to get the amount closer to what you would pay when installing a gas boiler.

Who can access heat pump grants?

The scheme is only open to domestic properties in England and Wales until 2025.

The property will need to have enough power to support an installation capacity of 45kWth or kilowatt thermal, which covers most homes.

Additionally, your home will also need a valid energy performance certificate with no outstanding recommendations for loft or cavity wall insulation, unless you are exempt.

How do you apply for a heat pump grant?

You don't apply for the scheme yourself.

Instead, you will need to find an MSC-certified installer to claim the grant on your behalf.

MSC is the certification scheme for energy efficiency product installers and you can find the nearest ones to you on the MSC website.

It may be worth getting a few quotes to compare which option is best-suited to you though.

The installer will advise on whether a low carbon heating system is suitable for your property and if you can get the grant.

Once you agree a price, the installer will apply for the grant and you will then be contacted by Ofgem, the energy regulator, to confirm that the work is being done on your behalf.

This isn't the only energy efficiency support available.

The £400 energy bill rebate, has seen vouchers issued to households since October.

Energy customers will see their final £67 payment next month (March 2023)

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Check if you are missing any benefits such as the Warm Home Discount – which gives you £140 off energy bills.

People on certain benefits can also get Cold Weather Payments of £25 a year when the temperature drops.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected]

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