Taxpayers spending thousands for wealthy homeowners to install heat pumps

Taxpayers are giving tens of thousands of pounds to homeowners for heat pump installations across multiple properties. One person has received £105,000 in grants for their 14 properties, a Freedom of information Act request has revealed.

Another person made a staggering 29 applications to the The Government's Boiler Upgrade Scheme (BUS) and still received 10 grants amounting to £75,000 in total. Mike Foster, CEO of the Energy and Utilities Alliance, said: "The net zero agenda loses all credibility if it leaves working families behind. It is shocking to see pressure placed on the poor, only for the benefits to flow to the rich."

The advocate for hydrogen heating added: "The Government must urgently reassess this scheme to stop taxpayer money from lining the pockets of the wealthy and ensure help goes to those who genuinely need it." The BUS grant was introduced to help people who could not afford the upfront costs of a heat pump make the switch to one by giving them up to £7,500 off.

But instead of going to the most in need, there are concerns that applicants who own several homes are receiving multiple grants from the Government.

Matt Copeland, National Energy Action’s head of policy, said: When installed properly and, where necessary, alongside appropriate energy saving measures, heat pumps can make homes warmer, cut fuel bills and help national efforts to reduce emissions.

“Grants are vital for the poorest households currently unable to live in a warm home that is affordable to heat. It is therefore very disappointing that this data shows the main programme - the Boiler Upgrade Scheme - is not currently being targeted effectively, with some households who can already afford to heat their homes being the key beneficiaries of the scheme.

“Because the scheme doesn’t pay for the full upfront cost of the heat pump, it was never a scheme that would be accessible to low-income households anyway. Our clients struggle to afford energy bills and other essentials and many are in debt; they certainly don’t have thousands to spend on a new heating system.

“It’s crucial that the government’s flagship Warm Homes Plan contains funding targeted at grant schemes more suitable for low-income households living in the worst fuel poverty.”

Nine individuals have used the BUS for 10 or more properties while at least 13 individuals have received more than £50,000 from the BUS.

The total number of individuals who have applied for more than one BUS voucher since May 2022 is 13,212, according to the figures obtained from regulator Ofgem.

Grants are issued on a property basis rather than the property owner and are subject to thorough eligibility checks by Ofgem the scheme administrator.

A spokesman for the Department for Energy Security and Net Zero said: “These claims ignore the fact that only one grant can be awarded under the Boiler Upgrade Scheme per property.

“A significant number of those who have more than one voucher are landlords, who are installing heat pumps in privately rented properties, which are lowering the energy bills for tenants.

“We’re also investing £13.2 billion to upgrade up to five million homes over this Parliament, while supporting industry to develop financing models that can remove the upfront cost of heat pumps – helping more households make the switch to cleaner heating in a way that works for them.”