How government grants can help reduce fuel poverty

As of 2022 13.4% of households in the UK face fuel poverty. According to National Energy Action, fuel poverty is when a household needs to spend 10% or more of their income on energy to be able to maintain a satisfactory heating regime.

Heating your home is expensive, especially when you’re relying on fossil fuels. While heat pumps have an expensive upfront cost, they have the ability to significantly reduce your energy bills in the long run. This showcases the importance of businesses and the government working on ways for air source heat pumps to be more readily available to those struggling to heat their home. That’s why this blog will explore how government grants can make heat pumps more affordable, helping to reduce fuel poverty.

Government grants

There are a variety of government grants available to offset the cost of a heat pump, such as:

BUS Scheme

The BUS scheme is designed to help people cover part of the cost of installing a heat pump, but there are some eligibility requirements that need to be met:

You must own the property you’re applying for, this includes businesses, second homes and properties you’re renting out to tenants.
You have installed your new heating system on or after the 1st April 2022.
You must be replacing a fossil fuel heating system, like oil, gas and electric.

Unfortunately, most new builds and social housing aren’t eligible for the BUS scheme. However, landlords could use the grant as an opportunity to provide housing opportunities for those facing fuel poverty as they’ll be paying lower energy bills.

The BUS Scheme has recently been increased from a £5,000 to £7,500 grant and will be available until 2028. This will help to lower the levels of fuel poverty throughout the UK as more affordable heating options will be available to a wider group of people.

Warmer Homes Scotland

The Warmer Homes Scotland programme helps people struggling to heat their homes by recommending suitable improvements that can enhance their heating. This could include:

Insulation improvements.
Wall insulation.
Loft insulation.
Draught-proofing.
Central heating, such as new gas boilers and air source heat pumps.
Renewables.

All home improvements made under the Warmer Homes Scotland grant must be completed by a Warmworks-approved installer.

To be eligible for the programme you will need to:

Be a homeowner or tenant of a private-sector landlord.
Your home must be your main residence.
Have lived there for at least six months (unless in receipt of an SR1, a DS1500 or a BASRiS form)
Live in a home with a poor energy rating (this will be assessed by Warmworks)
Live in a home that has a floor area of 230m2 or less.
Live in a home that meets the tolerable living standard set out in the Housing (Scotland) Act 2006 or where the home doesn’t meet the tolerable living standard. This won’t impact the effectiveness of the improvements recommended for your home.
Live in a home where the council tax band is A-F.
Eligible households must include either a person who is over 75 with no central heating, a person who is in receipt of a DS1500 or BASRiS certificate completed by a medical professional or, a person who is in receipt of at least one of the passport benefits, at any level or rate at which the benefit is paid.

The programme often covers the full costs of improvements suggested to homes, however in some circumstances part of the cost will need to be covered by the homeowner. This is a great way to make air source heat pumps and comfortable heating available to those struggling to keep their home warm. This in turn helps to reduce fuel poverty within the UK.

Home Energy Loan Scotland

The Home Energy Grant and Loan Scotland provides funding for energy efficiency improvements. Households can gain a loan of up to £7,500 or £9,000 for those eligible for the rural uplift.

In terms of heat pumps, homeowners can obtain a maximum loan of £7,500 or £9,000 for those who qualify for the rural uplift.

Who’s eligible?

Homeowners living in their main residence.
Those building their own home can use the loan for home renewable systems or energy storage systems.

The Home Energy Grant and Loan could be a great way to reduce fuel poverty in the UK, as when houses are sold to new owners they’ll be more energy efficient helping to reduce energy bills.

Nest Scheme Wales

The Nest Scheme provides a range of free impartial advice and if eligible a package of free home energy improvements. This can include things like:

A new boiler.
Central heating.
Insulation.
Solar panels.
Heat pumps.

All of these improvements are designed to reduce energy bills and improve health and wellbeing.

If you’re concerned about your energy bills, you can contact one of their advisors for free impartial advice on:

Saving energy and water.
Money management.
Checking you’re on the best energy tariff.
Check whether you’re entitled to any benefits to boost your income.

The Nest Scheme could make a huge difference to reducing fuel poverty in the UK, as it helps people take control of their money and gives them the ability to heat their home comfortably.

So if you’re looking to make a difference, get in touch with Enula today to see how we can help you install an air source heat pump.