The Department for Energy Security and Net Zero opened a consultation on proposed amendments to the Boiler Upgrade Scheme Regulations at 9am on 31 August 2023, closing at 11:59pm on 12 October 2023. It applied to England and Wales1. The consultation set out policy proposals and invited stakeholder views on several proposed amendments to the existing regulations2.
It sought views on three main areas: whether grant levels should be able to differ in different circumstances, whether to retain or amend the existing Energy Performance Certificate requirements, and whether biomass boilers with a cooking function should be eligible2. On grant levels, the consultation noted that any differentiation for certain property types, existing fuel source or property owners would currently require a change to the regulations3. On EPCs, eligible properties must have a valid certificate less than 10 years old with no outstanding recommendations for loft or cavity wall insulation3. The consultation asked whether properties with such outstanding recommendations should be eligible if a new EPC showed the insulation had been installed3.
The scheme was introduced in 2022 to support the decarbonisation of heat in buildings, with capital grants for heat pumps and biomass boilers in homes and non-domestic buildings in England and Wales1. The consultation document states the government launched the £450m Boiler Upgrade Scheme in May 2022, providing grants of up to £6,0002. At the time of the consultation, grants were £5,000 towards an air source heat pump or a biomass boiler, and £6,000 towards a ground source heat pump3. Since its launch, the scheme had delivered £65 million in grants, with 1,098 installers registered2. One report put vouchers issued at more than £81 million4.
"Households could also save time and money through a simplified approach to qualifying for a heat pump grant by removing the need to install loft or cavity wall insulation first."
The consultation document also set out wider context, including the target of 600,000 heat pump installs a year by 2028 and an extension of the scheme to 2028 with additional funding for each of the years following 20252. It noted a £5 million Heat Training Grant launched in July 2023 to train heat pump installers and heat network professionals across England, supporting 10,000 training opportunities up to 20252.
Why it matters for households
The proposals touched the practical conditions attached to a Boiler Upgrade Scheme grant. The EPC requirement has been a gate on eligibility: a home with outstanding loft or cavity wall insulation recommendations on its certificate could not qualify, and the consultation asked whether that should change3. Grant differentiation would allow support to vary by property type, existing fuel source or owner, which the regulations did not then permit without amendment3. For a household weighing a heat pump against a fossil fuel boiler, the level of grant and the work required before applying both affect the upfront cost. The consultation document frames the scheme within a wider aim of greater energy independence and reduced dependence on volatile global gas markets, noting that around half of the UK's total annual natural gas consumption is used in heating buildings2.
What happens next
The consultation closed on 12 October 20231. The government said it would announce the timing of the changes in the coming weeks and provide guidance for installers and consumers on how the changes would affect the application process1. A government response was published on 14 March 20241. As a result, the requirement for a valid EPC generated in the last 10 years will be retained, but the requirement to have no outstanding recommendations for loft and cavity wall insulation on the EPC will be removed; biomass boilers with an integrated cooking function will become newly eligible; and an application will not be eligible if made for a system commissioned more than 120 days ahead of the application1. The capacity limit for individual systems will stay at 45kW, while the limit for shared ground loops will rise to 300kW, alongside the increased grant level of £7,5001.
Sources4 cited
- Proposed amendments to the Boiler Upgrade Scheme Regulations - GOV.UK, gov.uk
- Boiler Upgrade Scheme Regulations: consultation, assets.publishing.service.gov.uk
- Proposed Changes to Boiler Upgrade Scheme - Elmhurst Energy, elmhurstenergy.co.uk
- Varied Heat Pump Grants to Improve Access to Low-Carbon Heating, epvs.co.uk