The energy price cap will rise by £63 in October 2024, the third increase in twelve months. That adds £189 a year to a typical direct debit bill, before you switch on a single radiator.
As reported by labourhub.org.uk, the new government’s first 100 days have been marked by what the site calls ‘turpitude’, a charge that stings because the evidence is hard to dismiss. The incoming administration promised a ‘Great British Energy’ company and a Warm Homes Plan. Neither has a launch date. The price cap keeps climbing.
Who qualifies, and who doesn’t
The Boiler Upgrade Scheme, which offers £7,500 off a heat pump or biomass boiler, remains open until March 2027. But the scheme’s budget is capped at £450 million per year. Once it’s gone, it’s gone. Ofgem data shows only 25,000 vouchers were redeemed in the first nine months of 2024, roughly 10% of the annual target.
The catch is that the scheme excludes 40% of English households, those not connected to mains gas. Rural homes on oil or LPG have no equivalent subsidy for heat pumps, despite paying two to three times more per kWh than gas users.
Meanwhile, the Energy Company Obligation (ECO4) continues to fund insulation and heating upgrades for low-income households. But eligibility requires someone on means-tested benefits. A working couple earning £45,000 with a draughty 1930s semi gets nothing.
What it costs a typical 3-bed semi
Take a 3-bed semi in Manchester, built in 1985, with an EPC rating of D. Annual gas and electricity costs under the October cap: roughly £2,100. Add standing charges of 85p per day for gas and 60p for electricity, that’s £530 a year before you burn a single therm.
Insulating the loft to 270mm costs about £500 and saves £180 a year. Cavity wall insulation runs £1,500–£2,500 and saves £300 annually. A heat pump, after the £7,500 grant, costs £3,000–£5,000 and can cut heating bills by 20–40% if paired with good insulation. But the upfront cost still deters most households.
Yet the government’s own advisory body, the Climate Change Committee, says 19 million homes need a heat pump by 2050. At current installation rates, around 60,000 per year, that target will be missed by 18 million.
The gap between promise and delivery
The Warm Homes Plan, announced in July, pledged to upgrade 5 million homes within five years. It has no published budget, no delivery timeline, and no named minister responsible. The local authority grants that fund schemes like the Great British Insulation Scheme have been paused in several councils due to ‘administrative delays’.
Energy Secretary Ed Miliband told parliament in September that the government would ‘move at pace’. Since then, the price cap has risen, the Clean Heat Market Mechanism has been delayed to 2025, and no new subsidy has been announced for off-grid homes.
What this misses is that homeowners are acting anyway. Heat pump installations rose 15% year-on-year in the first half of 2024, driven by the Boiler Upgrade Scheme and rising gas prices. Solar panel installations are up 22% in the same period, according to the Solar Energy UK trade body. The market is moving faster than the policy.
The lesson for homeowners is clear: don’t wait for government. Check your loft insulation today. Apply for the Boiler Upgrade Scheme before the budget runs out. Compare tariffs on a price comparison site, the cheapest deals are still 10–15% below the cap. Your wallet will thank you before the next election.
Frequently Asked Questions
The plan has not yet been launched, so no direct impact is visible. If delivered, it could fund insulation and low-carbon heating for 5 million homes, potentially cutting bills by £300–£400 a year per household. But without a timeline or budget, it is not worth factoring into your decision-making now.
No. The Boiler Upgrade Scheme offers £7,500 until March 2027, but its annual budget is limited and could run out early. If you are replacing a gas boiler, act now. The grant is not expected to increase, and delaying risks missing out entirely.
