The government announced on 30 March 2023 its intention to extend the Boiler Upgrade Scheme until 2028, according to Ofgem's first annual report on the scheme1. The three-year extension was announced as part of the "Powering Up Britain: Net Zero Growth Plan"1. The scheme had opened to applicants on 23 May 2022 for three years until 2025, with budget for up to 90,000 low carbon heating system installations over that period1.
Ofgem, which administers the scheme, set out the announcement in its report covering Scheme Year 1, from 23 May 2022 to 31 March 20231. Installers were able to create an installer account from 11 April 2022, in advance of the scheme opening for applications on 23 May 20221. In the first year, Ofgem received 15,768 stage 1 applications, issued 11,998 vouchers worth almost £69.1 million, and made 9,983 grant payments worth almost £50.2 million1. It rejected 1,362 applications that failed eligibility checks, and 161 were withdrawn1.
Ofgem's report states the extension sits alongside wider government aims, including "the target of deploying 600,000 heat pumps per year by 2028" and "plans to end new gas grid connections by 2025"1. The report does not set out the budget for the extended period, and no revised budget for 2025 to 2028 has been reported1.
"As part of 'Powering Up Britain: Net Zero Growth Plan', the government has announced its intention to extend the BUS until 2028."
The report gives the following figures for grants paid in Scheme Year 11:
| Measure | Figure |
|---|---|
| Grants paid | 9,983 |
| Value of grants paid | almost £50.2 million |
| Air source heat pumps | 96.3% of grants paid |
| Ground source heat pumps | 2.4% |
| Biomass boilers | 1.1% |
| Shared ground loop GSHPs | 0.1% |
| Fossil fuelled heating systems replaced | 74.1% |
| Domestic installations | 99.6% |
Ofgem's report also records that 1,055 installers created a BUS installer account over the first year, of which 915, or 86.7%, submitted applications1. It conducted 405 statistical audits during Scheme Year 1, and for audits closed to date assessed that 95.6% of those audited were complying with the scheme rules1.
Why it matters for households
The Boiler Upgrade Scheme provides upfront capital grants towards approved heat pumps and biomass boilers in homes and small non-domestic buildings in England and Wales1. The extension to 2028 means the grant is intended to remain available for longer than the original three-year window, though the report does not confirm funding levels for the added years1. For a household weighing up a heat pump, the practical effect is that the scheme's stated end date has moved from 2025 to 2028, subject to the government's stated intention being carried through1.
The first-year figures show where the money went: most grants supported air source heat pumps, and most installations replaced fossil fuelled heating, chiefly gas boilers at 46.3% and oil boilers at 22.9%1. Eligibility rules matter here, including the position for homes that already have a gas boiler, which is set out in the guidance on whether you can get the Boiler Upgrade Scheme grant if you have a gas boiler, and the separate position for social housing. Households considering other measures alongside a heat pump can check how ECO4 measures interact with other government grants, and those looking at solar panels or home battery storage can review the separate funding and VAT rules, including whether solar panels are needed for VAT-free battery storage.
What happens next
The report states the government announced its intention to extend the BUS until 2028 as part of Powering Up Britain on 30 March 20231. Ofgem says it is "looking forward to working with government to help the BUS continue to grow"1. The report does not set out a timetable for implementing the extension, and no further dated steps have been reported1.
Sources1 cited
- BUS Annual Report - 2022-23, ofgem.gov.uk