The new research is published today (28 October 2026) by the Grantham Research Institute on Climate Change and the Environment and the Centre for Economic Performance at the London School of Economics and Political Science, Imperial College London and UCL. <\/p>\n\n\n\n
Using 260,000 certified heat pump installation records for Northern England and Scotland, the researchers found that the 2023 grant increase – which applies only to England and Wales – raised monthly installations by 24% more in England than in Scotland, adding roughly 7,200 units over the 20 months following the reforms. Scotland operates separate clean-heating schemes with grant levels that did not change in October 2023.<\/p>\n\n\n\n
Because heating policy is devolved, the BUS applies only to England and Wales, whereas Scotland operates separate clean-heating schemes with grant levels that did not change in October 2023.<\/p>\n\n\n\n
Under the Boiler Upgrade Scheme (BUS), accredited installers apply for fixed-value vouchers on behalf of households and deduct the grant from the installation invoice. On 23 October 2023, the voucher value for air-source heat pumps (ASHPs) rose from £5,000 to £7,500, and the voucher value for ground-source heat pumps rose from £6,000 to £7,500.<\/p>\n\n\n\n
Similar capital grants for heat pumps are used in 22 European countries, the US, Canada, China, Japan and Korea. The UK BUS scheme is one of the most generous in the world.<\/p>\n\n\n\n
Aurélien Saussay, Assistant Professor at the Grantham Research Institute on Climate Change and the Environment<\/strong>, said: <\/p>\n\n\n\n “The evidence is clear: increased grants for heat pumps are effective. <\/p>\n\n\n\n “Our research shows that through targeted grants we can see tangible results that help cut bills for consumers and lower their carbon footprint.<\/p>\n\n\n\n “I hope this paper can inform the UK Government and decision makers around the world on why we must be rolling out more schemes like this, not reversing them.” <\/p>\n\n\n\n Ralf Martin, Professor of Economics at Imperial Business School,<\/strong> said: <\/p>\n\n\n\n “Many worried that a bigger heat-pump subsidy would simply be pocketed by installers at higher prices, but we find the opposite. <\/p>\n\n\n\n “The larger grant made local markets big enough to attract more installers, and the extra competition pushed installers’ prices down rather than up. Households ended up saving more than the £2,500 the Government added to the grant. <\/p>\n\n\n\n “They got the full subsidy increase and a price cut on top.” <\/p>\n\n\n\n <\/p>\n\n","protected":false},"excerpt":{"rendered":"\n 2023 increase to heat pump grant raised installations by 24% a month a study by LSE, Imperial and UCL has confirmed. <\/p>\n\n","protected":false},"author":63,"featured_media":59451,"template":"","tags":[5389,437,106],"news-category":[15],"topic_area":[],"class_list":["post-91496","news","type-news","status-publish","has-post-thumbnail","hentry","tag-boiler-upgrade-scheme","tag-uk","tag-uk-policy","news-category-10-press-releases"],"acf":{"show_translations_widget":{"ref_value":"field_6203d588c41e8","value":"0","type":false,"post_type":""},"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":false,"type":"repeater","post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["2023-increase-to-heat-pump-grant-raised-installations-by-24-a-month-study-finds"],"type":"relationship","post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""}},"yoast_head":"\n