The Secretary of State for Energy Security and Net Zero has authorised Ofgem to over-allocate grant vouchers under the Boiler Upgrade Scheme by up to £50 million in this financial year, taking the available total to up to £200 million1. The approval was reported on 3 October 20242.
The change follows a rise in demand for the £7,500 grant for heat pumps2. Applications to the scheme in August 2024 reached 2,890, more than double the number in August 20231. The Energy and Climate Intelligence Unit described the decision as the Government giving Ofgem permission to over-allocate vouchers, after demand grew in recent months2.
The Boiler Upgrade Scheme operates in England and Wales, where homeowners and small business owners can apply for the £7,500 grant if the installation is MCS certified1. Scotland has separate support: the Home Energy Scotland Grant and Loan offers grants up to £7,500 for certified heat pump installations, and up to £9,000 for households that qualify for a rural uplift1.
| Nation | Support for certified heat pump installations |
|---|---|
| England and Wales | £7,500 Boiler Upgrade Scheme grant1 |
| Scotland | Up to £7,500 Home Energy Scotland grant; up to £9,000 with rural uplift1 |
Separate figures published by MCS put certified heat pump installations at over 42,000 from January to the end of September 2024, against 40,426 across the whole of 20231. Average monthly installations have risen by 39% compared with 2023, bringing the total number of certified heat pump installations in the UK to nearly 260,0001. MCS said there is still progress to be made to reach the government target of 600,000 installations per year by 20281.
"The significant increase in activity had started to raise a budget risk, so we are extremely grateful that the team at the Department for Energy Security and Net Zero responded by permitting Ofgem to over-allocate vouchers for BUS through to March 2025."
Why it matters for households
The over-allocation is intended to ensure voucher availability through the financial year1. For a household considering a heat pump, it means the £7,500 grant in England and Wales is intended to remain available rather than being rationed by a fixed annual pot as applications rise1. The Energy and Climate Intelligence Unit said every electric heat pump installed reduces reliance on gas, which it said will increasingly come from abroad as the North Sea declines, and noted that 85% of UK homes use gas for heating2. On that argument, a home that switches its heating to electricity reduces its exposure to international gas markets. The scheme's budget is set for the financial year only; no figure for 2025/26 has been reported1.
What happens next
The over-allocation covers vouchers through to March 20251. The Heat Pump Association called on the Government to introduce the consulted-on Future Homes and Building Standard, adopt proposed changes to Permitted Development Rights, and tackle the disparity in electricity and gas pricing1. No dates for those measures are given in the reported material1.