The Department for Energy Security and Net Zero announced on 21 November 2024 that a further £30 million of funding will be made available for the 2024/2025 financial year, increasing the total Boiler Upgrade Scheme Year 3 budget to £180 million1. Year 3 runs from 1 April 2024 to 31 March 20251.
The Secretary of State for Energy Security and Net Zero has also given permission for Ofgem to over-allocate vouchers to a total of £250 million, to provide certainty that vouchers will continue to be available1. As of 31 October 2024, £142,912,500 had been allocated from the Year 3 budget, leaving £107,087,500 still available, including the £70,000,000 over-allocation amount1.
"On 21 November 2024, the Department for Energy Security and Net Zero announced a further £30 million of funding will be made available for the 2024/2025 financial year"
The announcement came alongside Ofgem's tenth quarterly report on the scheme, covering 1 August 2024 to 31 October 20241. In that quarter, 9,970 voucher applications were received and 6,227 vouchers issued, worth £46,655,0001. Voucher redemption applications totalled 6,849 and 7,090 grants were paid, worth £53,110,0001. Since the scheme launched on 23 May 2022, 58,952 applications have been received, 39,526 vouchers issued worth £256,180,500, and 37,417 grants paid worth £240,403,0001.
Of the 37,417 grants paid to date, 36,165 (96.7%) were for air source heat pumps, 957 (2.6%) for ground source heat pumps, 274 (0.7%) for biomass boilers and 21 (0.06%) for shared ground loop ground source heat pumps1. The South East accounted for 7,433 grants (19.9%) and the South West 6,863 (18.3%)1.
Budget use across the scheme's life has varied. Between launch and the end of Year 1 on 31 March 2023, £50,059,000 was allocated from the original £150 million Year 1 budget1. From the £150 million Year 2 budget (1 April 2023 to 31 March 2024), £88,671,500 was allocated up to the end of the scheme year1. Unspent budget is not carried over to the next scheme year1.
Why it matters for households
The extra £30 million extends the funding available for Boiler Upgrade Scheme grants within the current financial year, and the over-allocation permission is intended to keep vouchers available rather than pausing applications when the headline budget is committed1. For a household weighing up a heat pump or biomass installation, the practical question is whether a voucher can still be issued and later redeemed before the scheme year ends on 31 March 20251. Eligibility depends on the property and system, including the EPC insulation requirement and the position of homes that already have a gas boiler. The scheme operates in England and Wales under the Boiler Upgrade Scheme (England and Wales) Regulations 2022, amended in May 20241.
What happens next
The scheme year ends on 31 March 2025, and unspent budget is not carried over1. Ofgem publishes a monthly scheme update, a fortnightly budget overview for 2024/25, and an annual report by 31 July each year1. No further funding announcement beyond the £30 million has been reported.
Sources1 cited
- Quarterly Report – Issue 10, ofgem.gov.uk