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England and Wales

DESNZ publishes Boiler Upgrade Scheme consultation outcome

DESNZ has set out the outcome of its Boiler Upgrade Scheme consultation, keeping the EPC requirement but dropping the rule that loft and cavity wall insulation recommendations must be resolved first.

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

The Department for Energy Security and Net Zero (DESNZ) detailed the outcome of its consultation on the Boiler Upgrade Scheme the day before this report.

The scheme, introduced in 2022, provides upfront capital grants in England and Wales that reduce the installation cost of heat pumps and biomass boilers1. The grant amount is unchanged by this outcome.

DESNZ committed to four changes. It will keep the requirement for a valid Energy Performance Certificate issued within the last 10 years, but remove the requirement that the EPC carry no outstanding recommendations for loft and cavity wall insulation. Insulation will still be advised where the EPC recommends it, but will no longer be mandated1. Grant levels for properties off the gas grid and for self-build properties will not be varied when the regulations come into force, though DESNZ said varying them remains an option for the future1. Biomass boilers with an integrated cooking function that cannot be separately controlled will become eligible1. Applications will be ineligible where a system was commissioned more than 120 days ahead of the application1.

"Whilst Elmhurst welcomes the news that the Boiler Upgrade Scheme continues to use the EPC, it is very disappointing to see that the accepted 'Fabric First' approach is being abandoned here."
Andrew Parkin, Technical Development Director, Elmhurst Energy1

Elmhurst also noted that a valid EPC is one less than 10 years old that accurately represents the property's energy performance, and that changes to a property may mean an existing certificate no longer does so1.

Consultation commitmentOutcome
EPC requiredRetained, issued within last 10 years
No outstanding loft or cavity wall insulation recommendationsRequirement removed
Off gas grid and self-build grant levelsNot varied on commencement
Biomass boilers with integrated cooking functionEligible
Commissioning dateIneligible if more than 120 days before application

Why it matters for households

The eligibility rules now turn on holding a current EPC rather than on acting on its insulation recommendations. A household whose certificate flags loft or cavity wall insulation can apply without carrying out that work first, which removes a step that previously sat between a recommendation and a grant application. The EPC and insulation requirement is therefore narrower than before.

The practical effect on a home's energy independence is less clear. A heat pump is sized on a property's heating demand, which insulation reduces; Elmhurst's position is that where insulation is not installed, a heat pump will in most cases need to be larger, and that insulating later can leave it oversized and cycling1. The consultation outcome does not address sizing. Households with a gas boiler should note the scheme's separate rules on gas boiler eligibility, and those comparing support routes can look at Boiler Upgrade Scheme versus ECO4.

What happens next

DESNZ said it will announce the timeline for these changes in the coming weeks and will continue to work with stakeholders as it prepares to introduce them1. No commencement date has been reported.

Sources1 cited
  1. Boiler Upgrade Scheme Consultation Outcome - Elmhurst Energy, elmhurstenergy.co.uk