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BUS vouchers awarded rise 75% year on year after grant increase to £7,500

MCS reports that Boiler Upgrade Scheme vouchers awarded in February 2024 were 75 per cent higher than a year earlier, following the increase in the grant from £5,000 to £7,500.

A newspaper on a kitchen table beside a model of grants and schemes

Vouchers awarded under the Boiler Upgrade Scheme (BUS) in February 2024 were 75 per cent higher than in February 2023, according to MCS, the certification body for small-scale renewable installations. MCS attributes the rise to the increase in the grant from £5,000 to £7,5001.

The figure appears in MCS's written evidence to the Public Accounts Committee inquiry into decarbonising home heating, which the committee requested in March 2024 following a National Audit Office report on progress in decarbonising heat1. The inquiry session was held on 24 April, with senior officials from the Department for Energy Security and Net Zero giving evidence1.

MCS also reported on its monitoring role for Ofgem. As of April 2024 it had received 23,000 contacts, of which 21,953 had been contacted, and households that received a BUS voucher gave an average satisfaction score of 95 per cent. On payment, 80 per cent of households had the total amount discounted from their bill, with the remaining 20 per cent refunding the grant amount on completion of the system1.

On capacity, MCS said there are now more than 1,600 MCS certified heat pump contractors in the UK, and that its recent contractor survey found only 11 per cent of respondents considered themselves to be working at between 91 and 100 per cent capacity1.

"Since the increase to the grant from £5,000 to £7,500 we have seen a significant increase in vouchers awarded, in February 2024 there was a 75% increase compared to February 2023."
MCS, source1

The Boiler Upgrade Scheme pays a fixed amount towards the cost of an air source or ground source heat pump, or a biomass boiler in certain circumstances. The grant amount is £7,500 for heat pumps and £5,000 for biomass boilers. Eligibility depends on the property and the system, including the position where a home already has a gas boiler and any EPC insulation recommendations. Applications run through Ofgem, and the application process and the voucher redemption deadline set the timetable for installers. Households weighing the BUS against other support can compare it with ECO4 or read the wider grants and schemes material.

Why it matters for households

A higher grant changes the arithmetic of replacing a fossil fuel heating system with a heat pump, and the reported 75 per cent rise in vouchers suggests more households acted once the amount went up. For a home's energy independence, the practical effect is a lower upfront cost to move heating off gas or oil, though the running cost depends on the property, the system and the price of electricity relative to the fuel being replaced. The reported satisfaction and payment figures indicate that, for those who received a voucher, most had the amount taken off the bill rather than claiming it back afterwards. The MCS evidence does not report installation costs, running costs or savings for households, and no breakdown of the February 2024 voucher figure by nation, property type or technology has been reported.

What happens next

The Public Accounts Committee inquiry session was held on 24 April, and MCS said it looked forward to the outcome1. MCS recommended maintaining the current administrative processes, providing free and accessible consumer advice, giving long-term certainty including a ten-year scheme, and greater promotion of the BUS1. No date for publication of the committee's findings has been reported.

Sources1 cited
  1. MCS responds to UK Government’s call for evidence on decarbonising home heating - MCS, mcscertified.com