Worried about the changes to the Boiler Upgrade Scheme? Loco Home Retrofit explains how this affects Scotland’s homeowners.
It’s Good News! Heat Pump Grants in Scotland are Safe and continue to be Available To Scottish Homeowners.
We know there’s been a lot of confusing news recently about changes to funding for clean heating and home insulation from the UK Government. We wanted to set the record straight and clarify how these announcements affect residents here in Scotland.
Our main message is one of reassurance: the heat pump grants available to you in Scotland are currently unaffected and continue to be available.
Heat Pump Grants: Scotland vs. England/Wales
There has been confusion surrounding changes to heat pump funding, but it’s important to know that Scotland has its own separate system for these grants.
- The UK Government’s Boiler Upgrade Scheme (BUS): This is the scheme that has been the subject of recent announcements, including talks about trimming back funding. Crucially, the BUS is only for England and Wales.
- Scotland’s Scheme: Heat pump grants in Scotland are accessed through Home Energy Scotland. There has been no announcement from the Scottish Government about reducing, canceling, or putting a limit on this funding. The grant of up to £7,500 (£9,000 in rural areas) plus interest free loan of a further £7,500 remains available.
The take-home point? If you’re in Scotland, the current questions about heat pump grants do not affect you.
ECO: A UK-Wide Concern (The ECO Scheme)
While heat pump grants are safe, there are some potential changes to GB-wide funding for those vulnerable to fuel poverty, including Scotland.
- What is ECO? The Energy Company Obligation scheme is a major program designed to help fund energy efficiency improvements, address fuel poverty, and support the move to clean heating. It’s funded by levies currently applied to electricity bills.
- The Uncertainty: The UK Government is considering removing these levies from electricity bills to reduce costs. While this sounds good, the funding for ECO would need to come from general taxation, which has created doubt about the future of the scheme.
- The Impact: The ECO scheme was already due to end in April 2026. This new uncertainty puts a question mark over what the successor program will look like and how much funding will be available. Since ECO is a major source of work for companies installing insulation, heat pumps, and solar panels across Scotland, England, and Wales, any reduction in its size will affect the green renovation sector here in Scotland.
Air-to-Air Heat Pumps and the Future
A final point of recent news was the extension of the Boiler Upgrade Scheme (again, for England and Wales only) to cover air-to-air heat pumps.
- This is a smart move that will make it easier for many people to decarbonize their heating.
- While this change doesn’t apply to Scotland’s grant system yet, we strongly encourage the Scottish Government to consider a similar move to make these smaller, highly efficient systems more accessible here too.
Ready to Take the Next Step? Start Your Heat Pump Journey with Loco Home
Thinking about making the switch? Don’t let the process feel overwhelming.
For ease, peace of mind, and excellent performance, take advantage of the Loco Home Heat Pump Plan. We guide you through the right choices on systems and equipment, ensure you secure your £7,500 grant, and connect you with some of the best installers in Scotland so you get the most optimized system for the lowest possible bills.
Contact Loco Home today to simplify your heat pump project and ensure a great outcome!
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