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Featured - ISA allowance
What is the 2024/25 ISA allowance?A new tax-year means a refreshed ISA allowance to allocate. Find out more about the 2024/25 ISA allowance...
Savings
ISAs
Mortgages
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - travel insurance
Travel insurance 2024Discover the best travel insurance policy for your next trip.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Featured - The triple lock explained
Could the value of your state pension rise by more than inflation?
Retirement
Business savings
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Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
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Featured guides
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In an attempt to combat the rising cost of living, homeowners are increasingly looking for ways to lower their energy costs – and one option that’s growing in popularity is installing an air source heat pump. But could it be worth considering?
Energy costs have ramped up spectacularly in recent months, with it now costing a typical household almost £2,000 a year for gas and electricity thanks to the increased price cap that came into effect on 1 April.
The Government has attempted to counteract this by offering householders a £150 council tax rebate, while a £200 reduction in energy bills is due to be implemented in October (although this £200 will need to be paid back over five years). It’s also launched the Boiler Upgrade Scheme, which is designed to encourage households to install low-carbon heating systems, such as heat pumps.
The scheme offers a £5,000 grant towards the cost and installation of an air source heat pump or biomass boiler, or £6,000 towards the cost of a ground source heat pump. This could partly explain the rising popularity of air source heat pumps, though data from Rated People suggests that for many, it’s simply to save money.
Their research found that 52% of homeowners want to make their homes more environmentally friendly this year in order to save money on bills, while 36% hope to make long-term financial savings. Given that there’s been a 312% year-on-year uplift in demand for heat pumps, according to the number of jobs posted by homeowners on the find-a-tradesperson platform, it’s a trend that looks set to continue.
Despite the Government grant, the £5,000 discount is unlikely to cover the full installation cost of an air source heat pump, which can amount to between £7,000 and £13,000 according to the Energy Saving Trust. As such they’re only going to be suitable for those who have the means to cover such a large initial outlay, with low-income households who are already struggling likely locked out.
“It is a complex installation and usually requires for the whole of the central heating system to be replaced – which is naturally very expensive,” says Andy Kerr, founder at boiler purchasing service BOXT. “The installation alone is very expensive and usually is around five times more expensive than a replacement gas boiler – and even with the new grants available via the Boiler Upgrade Scheme will have a significantly larger upfront cost than a gas boiler.”
Yet despite the cost involved, for those who can afford it, the long-term benefit could be worth the initial outlay. Air source heat pumps work by transferring heat from the air to provide heating and hot water for a home and are highly efficient at doing so, and according to the Energy Saving Trust, could save homeowners thousands of pounds a year on their heating bills.
For example, a typical four-bed detached home that replaced an old (G-rated) gas boiler with an air source heat pump could save £910 a year on fuel bills, rising to £3,400 a year if it replaced an old LPG boiler.
However, the cost benefits will vary depending on the type of fuel system being replaced, the size of the home and the amount of energy being used. Indeed, replacing a new (A-rated) gas boiler with a heat pump could even work out more expensive, costing an average of £115 a year more, so it’s important to crunch the numbers.
“Heat pumps are a good option for some homes looking to reduce their reliance on fossil fuels, however they aren’t always suitable,” continues Andy. “For example, they are ideal for newly built homes or homes that are not on the gas network that have been newly renovated and insulated to a high standard. They are also more ideal to work with underfloor heating due to them working at low temperatures for longer periods of time.”
Consumers who think that a heat pump could be suitable may be wondering how to pay for it. Alongside applying for the Government grant, turning to savings could be an option for those with a sufficient pot, or perhaps a loan or credit card for consumers who are comfortable with borrowing for this purpose. Plus, reading our tips on spring cleaning finances as the cost of living soars could help consumers get their finances under control.
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The Financial Conduct Authority is set to extend Consumer Duty rules to closed products and services from the end of this month, but savers shouldn’t be complacent.
The FCA is set to extend Consumer Duty rules to closed products and services from the end of this month, but savers shouldn’t be complacent.
Are the new rules enough to attract high quality companies to the UK?
Are the new rules enough to attract high quality companies to the UK?
With the UK General Election taking place later this week (Thursday 4 July), we examine how some of the main parties’ policies could affect your personal finances if they were to form the next Government.
Find out what the Conservative and Labour Parties have planned for your taxes, savings and pensions.
As the Conservative Party seeks to extend its 14-year period in Government in the General Election on 4 July 2024, we reflect on how both the mortgage and savings markets have changed since 2010.
A global pandemic, international conflict and rampant inflation have all taken their toll.
The Financial Conduct Authority is set to extend Consumer Duty rules to closed products and services from the end of this month, but savers shouldn’t be complacent.
The FCA is set to extend Consumer Duty rules to closed products and services from the end of this month, but savers shouldn’t be complacent.
Are the new rules enough to attract high quality companies to the UK?
Are the new rules enough to attract high quality companies to the UK?
With the UK General Election taking place later this week (Thursday 4 July), we examine how some of the main parties’ policies could affect your personal finances if they were to form the next Government.
Find out what the Conservative and Labour Parties have planned for your taxes, savings and pensions.
As the Conservative Party seeks to extend its 14-year period in Government in the General Election on 4 July 2024, we reflect on how both the mortgage and savings markets have changed since 2010.
A global pandemic, international conflict and rampant inflation have all taken their toll.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.