The government announced in December 2023 that the Boiler Upgrade Scheme would receive an additional £1.5 billion in funding until 2028, enough for an additional 200,000 vouchers for homeowners across England and Wales1. The announcement followed an increase in the grant value for air source and ground or water source heat pumps from £5,000 to £7,500 in October 20231.
The funding was reported as part of a wider £6 billion package covering businesses and the public sector, with the stated aim of 600,000 heat pumps installed in homes and businesses each year by 20283. One account describes the additional money as covering the years 2025 to 20283. The Department for Energy Security and Net Zero has not been quoted directly in these accounts, and the full eligibility rules for the extended funding have not been reported.
Uptake figures published by MCS, the certification scheme for small-scale renewables, put the grant increase in context. Average weekly applications for BUS vouchers rose from 331 to 1,172 after the grant value went up2. A separate account cites a 57 per cent rise in applications to the scheme3. MCS reported that nearly 25,000 certified air source heat pumps were installed across England in 2023, an 11 per cent increase on 2022, and that Wales saw 5,853 heat pump installations, more than double its 2022 figure2.
"There was further good news in December with the announcement of an additional £1.5billion in funding for BUS until 2028, which will allow for an additional 200,000 vouchers for homeowners across England and Wales."
Installation rates vary by nation. MCS reported that 8.4 per cent of Welsh households and 8.2 per cent of Scottish households had a certified renewable installation by the end of 2023, against over 5.7 per cent in England and just under 4.4 per cent in Northern Ireland1.
| Nation | Households with a certified renewable installation, end 2023 |
|---|---|
| Wales | 8.4%2 |
| Scotland | 8.2%2 |
| England | over 5.7%1 |
| Northern Ireland | just under 4.4%2 |
Why it matters for households
The grant amount is the main lever the scheme offers a household replacing a fossil fuel heating system, and the £7,500 rate applies to air source and ground or water source heat pumps1. The additional £1.5 billion extends the scheme's funding envelope to 2028, which matters to any household weighing a heat pump installation against the risk that grant money runs out before they apply. Eligibility rules, including the position for homes with an existing gas boiler, are unchanged by the funding announcement as reported.
The scheme operates in England and Wales only1. Households in Scotland and Northern Ireland fall under separate arrangements, and MCS notes that Scotland's Home Energy Scotland Grant and Loan provides £7,500 towards a heat pump, with up to £9,000 for some rural households2. For a household, the practical effect of the announcement is that the grant remains available for longer, not that the amount has changed again.
What happens next
The additional funding is reported as running until 2028, with one account specifying the years 2025 to 20282. MCS also noted that VAT was removed from battery storage installations from 1 February 2024, and that a new MCS Scheme was due to take effect in summer 20242. No further changes to BUS grant values have been reported.
Sources4 cited
- The South leads for adoption of renewables in England last year - MCS, mcscertified.com
- Battle of the Nations: Renewable uptake across the UK in 2023 - MCS, mcscertified.com
- UK Boiler Upgrade Scheme gets £1.5bn funding | Read more at Aira home, airahome.com
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