Major change to scheme offering £7,500 cash grant - and it means more people can qualify

Under the old rules, households needed to have loft or cavity wall insulation installed in their property to apply for the boiler upgrade scheme - but this is no longer the case

More households will be able to apply for a grant worth £7,500 thanks to major changes to a home improvement scheme.

The boiler upgrade scheme allows you to access £5,000 to install an air source heat pump, or £5,000 towards a biomass boiler. As these are grants, the money does not need to be paid back. Under the old rules, households needed to have loft or cavity wall insulation installed in their property to apply for the scheme.

However, the qualifying criteria has just been tweaked so households no longer need to have insulation installed before applying. You’re eligible for a grant if you own your property, you have a valid Energy Performance Certificate (EPC) and you're replacing fossil fuel heating system.

You new heat pump must also be installed within 120 days of applying for the grant, otherwise the grant won't be valid. You don't apply for the Boiler Upgrade Scheme grant yourself - instead, you need to find an MCS-certified installer to claim the grant on your behalf.

Homeowners can find the cheapest and nearest tradesman on the MCS website. Once you agree a price, the installer will then apply for the grant. You'll then be contacted by Ofgem to confirm that the work is being done on your behalf.

Heat pumps are being widely looked at as the replacement for gas boilers. They're often described as "like a fridge in reverse" as they extract energy from the air, the ground or water, then it transfers the heat to where it is needed. The Energy Saving Trust estimates that an air source heat pump can cost between £14,000 and £19,000 to install, while a ground source heat pumps can cost between £28,000 and £34,000.