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UK households could claim up to £10,000 in energy grants as part of Labour's decision to expand the Boiler Upgrade Scheme. The Government initiative allows Brits to apply for grants to cover part of the cost of replacing fossil fuel heating systems with a heat pump or biomass boiler.

It currently offers grants of £7,500 off the cost of installing an air source or ground source heat pump. However, now the scheme will also offer £2,500 discounts off the cost of installing an air-to-air heat pump, providing both heat in the winter and keeping homes cool throughout the summer.

The upgrade marks the first time that air-conditioning has been eligible for Government funding, allowing Brits to remain cool in their homes without burning harmful fossil fuels.

All UK households can benefit from the grants that are part of the Government's £13.2 billion Warm Homes Plan, set to bring bills down for five million families across the nation.

The cost of installing an air-to-air heat pump in a flat or small house can amount to £4,500, meaning the grant could cover most of the upfront cost.

The £2,500 can also be claimed off the price of heat batteries, which store heat overnight to use during the day, and in some cases can supply hot water.

Martin McCluskey, minister for Energy Consumers, said: "Air-to-air heat pumps offer the best of both worlds - keeping you warm in the winter while cooling you down when summer comes along.

"With heat pumps more popular than ever, we want to make sure as many people can benefit, especially those in flats or small homes without central heating, so they have greater choice when upgrading their property."

According to officials, 2025 was a record-breaker for heat pumps, with September applications being particularly high.

Mr McCluskey added: "We are also offering discounts for heat batteries and consulting on the role innovative, clean heating solutions can play, including thermal storage, infrared panels and renewable fuels."

Charlotte Lee, chief executive of the Heat Pump Association, said: "Broadening the range of supported technologies is an important step in offering consumers more choice. To maintain this success, an ambitious budget allocation under the Warm Homes Plan will be key to ensuring that the scheme continues to deliver for households and industry, supporting jobs and long-term investment."