Reform UK has pledged to scrap the £7,500 Boiler Upgrade Scheme grant for heat pumps, a move that would add thousands to the cost of switching away from gas. The party’s energy policy, as reported by The Telegraph, would kill the single most effective financial lever for decarbonising home heating.
Who qualifies, and who doesn’t
The Boiler Upgrade Scheme currently covers £7,500 of the upfront cost for air-source heat pumps, and £7,500 for ground-source. That brings a typical installation from £12,000 down to £4,500 for a 3-bed semi. Ofgem data shows 60% of applicants were homeowners in England and Wales, with average household incomes of £45,000. The grant is available to any property with an EPC rating of D or above, roughly 80% of homes. Without it, the upfront cost jumps back to £9,000–£15,000, depending on property size and groundworks.
What it costs a typical 3-bed semi
Energy Saving Trust calculations put the annual running cost of a heat pump at £450–£600 for a 3-bed semi with good insulation, compared with £800–£1,000 for a gas boiler at current price-cap rates. The payback period with the grant is 6–8 years. Without it, that stretches to 14–20 years, longer than the expected lifespan of the unit. The catch is that heat pumps need low flow temperatures, which work best in well-insulated homes. Retrofit insulation adds another £3,000–£7,000, making the total upfront cost prohibitive for most households without the grant.
What this means for EPC ratings and the 2035 phase-out
The government’s 2035 target to phase out new gas-boiler installations assumes heat-pump sales reach 600,000 a year by 2028. Current sales are 60,000. Scrapping the grant would likely cut that to 15,000–20,000 annually, according to industry estimates cited by the Climate Change Committee. For homeowners, that means a slower EPC improvement: heat pumps typically lift a D-rated home to a C, saving £300–£500 a year on bills. But the real blow is to off-gas-grid homes, where oil or LPG heating costs £1,200–£2,000 a year. Those households have no grid-gas alternative, only a heat pump or expensive electric storage heaters. Without the grant, they face a choice between high running costs and a massive capital outlay.
What homeowners should do now
If you are considering a heat pump, apply for the Boiler Upgrade Scheme before any policy change. Applications are open until March 2027, but a new government could close it earlier. Check your EPC rating first, if it’s below D, you may need insulation before the heat pump can work efficiently. Use the Energy Saving Trust’s postcode tool to find certified installers and compare quotes. The grant is paid directly to the installer, so you only pay the net cost. For those on oil or LPG, the savings are even more compelling: a £7,500 grant against a £12,000 installation yields a payback of under 5 years at current fuel prices. Act now, because the next election could change the rules.
Frequently Asked Questions
Not directly. Gas boilers are already more expensive than heat pumps to run, and their price is set by the market and the Energy Price Cap. The main impact of scrapping grants is on the upfront cost of heat pumps, which would rise by £7,500, making gas boilers cheaper in the short term.
The Boiler Upgrade Scheme is currently funded until March 2027. If Reform UK forms a government and fulfills this pledge, the scheme would likely close before that date. However, any new policy would require parliamentary approval, so there would be a transition period. It's safest to apply now.
