The scheme aims to support 240,000 jobs across the country by 2035 whilst also encouraging people to install low carbon heating systems which harness heat from the air or ground in a system that works in the opposite way to a refrigerator.
The £5,000 grants will be available for households in England and Wales starting in April 2022, with the aim to make heat pumps the same price as traditional gas boilers.
Currently heat pumps cost upwards of £10,00 on average, and struggle to deliver savings on running costs.
However, the Government said it would work with the energy industry to help residents install low carbon heating systems in a cheap and fair way, with the aim of making heat pumps the same cost as fossil fuel systems by 2030.
The ban on gas boilers?
In the coming days Boris Johnson is expected to announce a ban on all new gas boilers by 2035 which will be aided by the previously announced £450m Boiler Upgrade Scheme.
However this swap will not be mandatory and householders won’t be forced to remove their existing fossil fuel boiler.
Ministers said that this is being put in place to reduce the UK’s dependency on fossil fuels and reduce price spikes in gas.