Grants & Finance FAQs
Government grants and finance options for heating upgrades.
How much is the Boiler Upgrade Scheme (BUS) grant for a heat pump?
The Boiler Upgrade Scheme offers a grant of £7,500 towards the cost of installing an air source or ground source heat pump. The grant is applied directly to your installation invoice — you don't need to claim it separately. To qualify, your installer must be MCS certified. Halo Heating is MCS certified and can apply for the BUS grant on your behalf.
Who is eligible for the Boiler Upgrade Scheme?
The BUS is available to owner-occupiers and landlords in England and Wales who are replacing an existing heating system (fossil fuel boiler or direct electric heating) with an eligible heat pump. The property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation (or those measures must have been installed). There is no income threshold — it is available to all eligible applicants.
What is the ECO4 scheme and could I qualify?
ECO4 (Energy Company Obligation 4) is a government scheme requiring large energy suppliers to fund energy efficiency improvements for eligible households. Eligibility is based on household income, benefit entitlements (such as Universal Credit, Child Tax Credit, or Pension Credit), and the property's EPC rating. Qualifying measures include insulation, boiler upgrades, and heat pumps. We can help assess your eligibility.
Is there VAT on heat pump installations?
Yes — heat pump installations attract 0% VAT (reduced from 20%) under measures introduced in 2022 and extended in subsequent budgets. This applies to the supply and installation of energy-saving materials including air source and ground source heat pumps. This represents a significant saving on the overall installation cost.
What is the Great British Insulation Scheme?
The Great British Insulation Scheme (GBIS) is a government-funded programme that provides free or subsidised insulation to homes across England. It targets homes with poor insulation (EPC D or below) and offers a range of insulation measures including loft, cavity wall, and solid wall insulation. Improving insulation makes your heating system more effective and can support a future heat pump installation.
What is the Warm Homes Plan?
The Warm Homes Plan is the UK government's programme for improving home energy efficiency, replacing and expanding on earlier schemes. It aims to upgrade millions of homes with insulation, heat pumps, and other low-carbon technologies. The specific funding routes and eligibility criteria under the Warm Homes Plan evolve — contact us or check the government's website for the latest information.
Can I finance a new boiler or heat pump on monthly payments?
Yes. We offer monthly finance options for new boiler and heat pump installations, including interest-free finance on qualifying purchases. This allows you to spread the cost of a new heating system without a large upfront payment. Finance is subject to credit status and eligibility. Call us on 01483 676108 or use our contact form to discuss finance options.
Are there any grants available for a new gas boiler?
There are currently no government grants specifically for new gas boiler installations, as government policy is focused on supporting the transition to low-carbon heating. However, the ECO4 scheme may fund a gas boiler replacement as part of a wider package of improvements for eligible households on certain benefits. We can check your ECO4 eligibility at no charge.
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