The Department for Energy Security and Net Zero (DESNZ) conducted a consultation in April 2025 on proposed changes to the Boiler Upgrade Scheme (BUS), according to Ofgem's annual report on the scheme1. The most recent update on the consultation was published on 9 April 2025, and the government is still considering a range of potential amendments to the BUS regulations1. No decision has been reported.
The BUS launched on 23 May 2022 and provides upfront capital grants towards heat pumps and, in limited circumstances, biomass boilers in homes and small non-domestic buildings in England and Wales1. Ofgem is the scheme administrator, and the scheme is underpinned by the Boiler Upgrade Scheme (England and Wales) Regulations 2022, as amended1. Current grant levels are £7,500 for air source heat pumps, £7,500 for ground source heat pumps and £5,000 for biomass boilers1. Supported systems must be up to a maximum capacity of 45 kWth, and installers and products must be certified under the Microgeneration Certification Scheme1.
The consultation follows a set of earlier changes that came into force on 8 May 2024, after a consultation by the previous government1. Those changes confirmed the scheme's extension to 2028, removed the requirement to install loft or cavity wall insulation where recommended on a property's EPC, introduced a 120-day limit after commissioning for submitting a redemption application, and expanded support to biomass boilers that can provide a cooking function1.
Budget and take-up figures for the scheme year running from 1 April 2024 to 31 March 2025 were also set out. The budget for that year was increased twice, from £150 million to £205 million, and DESNZ granted Ofgem the ability to over allocate vouchers up to a maximum value of £280 million1. In November 2024, the government announced that the budget for 2025 to 2026 would rise further to £295 million1. From scheme launch to the end of March 2025, 49,136 low-carbon heating systems had been supported, with £328.2 million paid in total1. Ofgem received 38,412 stage 1 applications during the year, issued 32,996 vouchers worth over £247 million, and made 25,331 grant payments worth £189.7 million1.
"Following a public consultation, DESNZ are currently considering a range of potential amendments to the BUS regulations."
| Grant | Amount |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump | £7,500 |
| Biomass boiler | £5,000 |
Why it matters for households
The BUS is the main grant route for households in England and Wales replacing a fossil fuel heating system with a heat pump, and the rates above are the amounts currently available. Any change to the scheme's rules would alter what a household can claim and the conditions attached to a grant, so the outcome of the consultation matters to anyone weighing up a heat pump installation. The scheme's extension to 2028 and the £295 million budget for 2025 to 2026 give a stated funding horizon, though the consultation outcome is not yet known. How such consultations are run, and how rules are proposed, decided and changed, is set out in the site's guide to energy consultations. The department responsible is covered in the guide to DESNZ, and the body that administers the scheme and handles complaints and redress is covered under Ofgem and energy complaints and redress.
What happens next
A formal decision on the proposed changes is expected later in the year, according to the summary of the development. Ofgem states that it looks forward to working with DESNZ, installers and scheme participants to implement any changes DESNZ chooses to take forward1. No date for the decision has been reported.
Sources1 cited
- BUS Annual Report 2024 to 2025, ofgem.gov.uk