The government has committed a further £1.5 billion to the Boiler Upgrade Scheme from the £6 billion pot committed last year.

The scheme offers grants of up to £7,500, after the amount was upgraded from £5,000 in October – and since then the government said there’s been a 57% increase in applications.

To be eligible for the scheme you need to be a homeowner or small business owner in England and Wales with a valid EPC rating within the past 10 years.

Claire Coutinho, energy secretary, said: “Everyone deserves to live in a warm, energy efficient home. We have already made excellent progress with nearly 50% of properties in England now having an Energy Performance Certificate of C – up from just 14% in 2010.

“This funding will help us go even further and improve 200,000 cold, low income and social homes.”

There will also be a £400million energy efficiency grant from 2025, for households in England to fit improvements like bigger radiators and better insulators.

Councils will also receive £500million to assist 60,000 low-income and cold homes with insulation measures, including those off the gas grid.

Daniel Särefjord, chief executive of Swedish heat pump company Aira, said: “Wwe are certain that with government support, heat pumps will help to drive down energy bills for millions of families and reduce the UK’s reliance on importing expensive and polluting gas.

“We are investing £300 million in the UK’s clean technology sector and within the next decade, plan to employ 8,000 new Clean Energy Experts nationwide to help us decarbonise the residential heating market. It’s encouraging to see additional investment in the BUS, though there is still much to be done.

“Heat pumps have been heating Scandinavian countries for decades and will be the solution to Britain’s energy crisis. The government recently committed to removing planning policy barriers, reforming EPC’s and tackling the unit costs of gas and electricity and if we can see these policy changes through, heat pumps will have a bright future in the UK.”