British Gas handing customers £456 off energy bills to 'make things easier'

British Gas is handing customers over £400 off bills as thousands more households can get a free £7,500 to improve their home and slash bills. The Department for Energy Security and Net Zero (DESNZ), now operating under the Labour Party government, has committed an extra £30million in funding this financial year for its Boiler Upgrade Scheme.

The Department for Energy Security and Net Zero (DESNZ) has committed an extra £30million in funding this financial year for its Boiler Upgrade Scheme, which is part of its wider Warm Homes Plan. The budget is set to be almost doubled next financial year as well, to £295million.

It will allow homeowners in England and Wales to get a £7,500 heat pump grant through the Boiler Upgrade Scheme, which had the highest number of applications ever in October according to Ofgem and households to install an air source heat pump without needing to submit a planning application in England – removing the 1m rule, with figures from Octopus showing 34% of those who order a heat pump are discouraged or drop out for reasons attributed to planning permission.

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It will allow social housing residents, lower income householders and renters to receive funded energy efficiency upgrades - including insulation and low-carbon heating - through the Warm Homes: Social Housing Fund and Warm Homes: Local Grant respectively.

Mike Foster, Chief Executive, Energy and Utilities Alliance, said: "Minister Fahnbulleh has constructively engaged with industry and British manufacturers, who have warmly welcomed this new approach. By working in partnership, we have an outcome which no longer unfairly penalises business and consumers. That is a big win for households across the country."

Chris O’Shea, CEO, Centrica, said: "We are delighted that the government is making it easier for households to install heat pumps by removing the outdated 1m planning rule in England and increasing the funding available in the Boiler Upgrade Scheme. Heat Pumps will play an integral role in decarbonising home heating, and we look forward to supporting customers transitioning from gas boilers to heat pumps, through our Hive Heat Pump offer which can save customers up to £456 on their energy bills."

Dhara Vyas, CEO, Energy UK, said: "It is welcome to see the government increase funding for the Boiler Upgrade Scheme (BUS), set out more detail on the Clean Heat Market Mechanism (CHMM), and remove planning barriers to heat pump installations. This is a clear recommitment to heat decarbonisation, which will play a vital role in improving energy security and reducing our reliance on gas. The BUS is enabling consumers to install heat pumps at record rates, with demand for low carbon technologies increasing.

"It is right that the government does not further delay delivery of the CHMM, as this mechanism is vital to increasing availability of heat pumps and attracting investment into UK manufacturing. The industry stands ready to work with government to ensure the CHMM is effective and ambitious, enabling customers to choose when they make the transition, while also developing robust low carbon heat supply chains and markets in the UK."