Air-to-Air Heat Pumps and Aircon in the UK: How the New £2,500 Voucher Could Cut Your Heating Costs

Feb 9
5 min read

Air-to-Air Heat Pumps in the UK: How the New £2,500 Voucher Could Cut Your Costs

If you’ve been looking into greener ways to heat your home, chances are you’ve come across heat pumps. Until recently, most of the attention (and funding) was aimed at air-to-water systems that replace gas boilers. But that’s starting to change.

The UK government has now confirmed a £2,500 voucher for air-to-air heat pumps, making them far more affordable for everyday homes — especially flats, smaller properties, and homes without gas.

So what does that actually mean for you? And is an air-to-air heat pump worth considering?

Let’s break it down properly — no jargon, no hype.

What Is an Air-to-Air Heat Pump (In Plain English)?

An air-to-air heat pump works a bit like a high-tech, super-efficient air conditioner — but one that also heats your home.

Instead of burning gas, it pulls heat from the outside air and moves it indoors. Even when it’s cold outside, there’s still usable heat in the air. In summer, the system can reverse, removing heat from your home to keep rooms cool.

Warm or cool air is then blown directly into your rooms through wall-mounted indoor units.

The key thing to know is this:

Air-to-air heat pumps heat and cool air
They don’t heat water
They don’t use radiators or underfloor heating

That makes them very different from air-to-water heat pumps — and perfect for certain types of homes.

Why Is the Government Offering a £2,500 Voucher?

Heating homes is one of the UK’s biggest sources of carbon emissions. Gas boilers are reliable, but they’re also fossil-fuel hungry — and expensive to run as gas prices rise.

The government’s long-term plan is to reduce reliance on gas, cut household energy bills, and hit net-zero targets. Until now, most funding focused on full boiler replacements, which aren’t suitable (or affordable) for everyone.

Air-to-air heat pumps solve a different problem:

They’re cheaper to install
They suit flats and smaller homes
They provide cooling as well as heating
They’re ideal where radiators aren’t practical

The new £2,500 air-to-air heat pump voucher is designed to open the door for households that were previously left out of heat pump schemes.

In short: more choice, lower costs, fewer emissions.

Who Can Get the £2,500 Air-to-Air Heat Pump Voucher?

Based on current guidance, the voucher is not means-tested. That’s a big deal.

It’s intended for UK households installing a qualifying air-to-air heat pump system, as long as:

The system is new
The installation is carried out by an approved installer
The equipment meets scheme requirements

In most cases, the installer applies the voucher directly, and the discount comes straight off your final bill. No long rebate forms. No waiting months to get your money back.

As with all government schemes, exact eligibility rules can evolve, so it’s always worth confirming details with your installer before committing.

How Much Does an Air-to-Air Heat Pump Cost With the Voucher?

Let’s talk real numbers.

A typical air-to-air heat pump installation in the UK costs around £4,000–£5,000, depending on:

Number of indoor units
Property size
Installation complexity
Brand and efficiency rating

With the £2,500 voucher, that cost can drop dramatically.

Example Cost Breakdown

Typical installation cost: £4,500
Government voucher: −£2,500
Your cost: £2,000

For many households, that’s similar to — or cheaper than — replacing an old boiler or installing electric heaters.

On top of that, heat pumps currently qualify for 0% VAT on supply and installation, which can save you even more.

Why Air-to-Air Heat Pumps Make Sense for Certain Homes

Air-to-air systems aren’t for everyone — but when they’re right, they’re very right.

They’re especially popular for:

Flats and apartments
Homes without gas
Properties with limited space
Renovations and retrofits
Buy-to-let properties
Home offices and extensions

Because they don’t rely on radiators or pipework, installation is usually quicker and less disruptive than traditional heating upgrades.

Pros and Cons: An Honest Look

Let’s be realistic. Every heating system has trade-offs.

The Advantages

Lower running costs Air-to-air heat pumps are extremely efficient. For every unit of electricity used, they can deliver three or more units of heat.

Heating and cooling in one system UK summers are getting hotter. Having built-in cooling is no longer a luxury — it’s becoming a necessity.

Lower upfront cost Even before the voucher, air-to-air systems are cheaper than most other heat pumps. With £2,500 support, they become very competitive.

Cleaner and greener No combustion. No gas. Much lower carbon emissions — especially if paired with renewable electricity.

Fast installation Many systems can be installed in a couple of days.

The Downsides

No hot water You’ll still need a separate solution for showers and taps, such as an electric immersion heater or existing boiler.

Air-based heating feels different Some people prefer the feel of radiators. Others love the fast, controllable airflow.

Not ideal for large, draughty homes Very large or poorly insulated houses may need multiple units or a different system altogether.

Air-to-Air vs Air-to-Water Heat Pumps

This is a common question — and an important one.

Feature	Air-to-Air	Air-to-Water
Space heating	Yes	Yes
Cooling	Yes	Rare
Hot water	No	Yes
Radiators needed	No	Yes
Typical grant	£2,500	Up to £7,500
Installation cost	Lower	Higher
Best for	Flats, small homes	Larger family homes

Neither is “better” overall — they’re just built for different situations.

How to Get the £2,500 Voucher: Step by Step

Assess your home Check insulation levels, room layout, and external space.
Contact approved installers Always get at least two quotes. A good installer will explain whether air-to-air is right for you.
Confirm voucher eligibilityThe installer usually handles this and applies the discount automatically.
Installation Most installs are quick, tidy, and minimally disruptive.
Start saving Enjoy lower energy bills, better comfort, and year-round temperature control.

Is an Air-to-Air Heat Pump Worth It?

If you live in a flat, a smaller house, or a property without gas — the answer is often yes.

The new £2,500 voucher removes one of the biggest barriers: upfront cost. When combined with lower running costs and zero-VAT incentives, air-to-air heat pumps suddenly make a lot of financial sense.

They won’t replace every boiler in the UK — but for the right homes, they’re one of the smartest upgrades available right now.

Final Thoughts

The UK heating landscape is changing fast. Gas prices are unpredictable, summers are hotter, and energy efficiency is no longer optional.

The £2,500 air-to-air heat pump voucher is a clear signal from the government: modern, electric heating and cooling is here to stay.

If you’ve been sitting on the fence, now is a very good time to take a closer look.