Lloyds Banking Group and Octopus Energy have formed a partnership to provide energy-efficient home improvements to the group’s customers.

The first scheme of the partnership will offer lower cost air-source heat pumps to UK households. 

The pilot has launched through the Halifax brand as part of its Green Living Reward scheme. 

Customers using mortgage borrowing to fund the switch to an air-source heat pump will benefit from £1,000 cashback on completion of the installation. 

Halifax will provide borrowers with a referral link to arrange installation with Octopus Energy.

When used in conjunction with the government’s boiler upgrade scheme, which provides grants of £5,000, the cashback brings the cost of installing heat pumps to as low as £2000.

The new scheme also allows for greener energy in UK households. Air-source heat pumps are a low-carbon source of heating, 75% lower carbon than a gas boiler.

Lloyds Banking Group chief executive of consumer lending Jas Singh says: “Our partnership with Octopus adds another element supporting our strategy to help Britain live in better, warmer, greener homes and move the country towards its net zero target.”

“Lots of homeowners who need to replace, or want to upgrade, a gas boiler may have considered the switch to a heat pump but see the cost as a barrier.”

“This extension to our Green Living Reward scheme will make switching from a gas boiler to a new, more efficient, cheaper to run heat pump easier and more affordable than ever before.”