The Department for Energy Security and Net Zero has confirmed that funding for the Boiler Upgrade Scheme will continue for further years up to 2029/30 through the Warm Homes Plan, in statistics published on 27 August 20261. The confirmation, made in January 2026, sits alongside a budget of £400 million for 2026/27, the scheme's fifth year1.
The scheme, which opened on 1 April 2022 and is administered by Ofgem, is installer-led: the installer submits a voucher application on behalf of the property owner, who must give consent, and Ofgem checks eligibility before issuing a voucher1. Vouchers are issued first come, first served until the budget cap for the financial year is reached, and all installations must be Microgeneration Certification Scheme (MCS) certified1. Across the first four years of the scheme, over £560 million was paid out through grants1.
Current grant values are set out below1.
| Technology | Grant |
|---|---|
| Air-to-water heat pump | £7,500 |
| Ground source heat pump (including water source and shared ground loops) | £7,500 |
| Air-to-air heat pump | £2,500 |
| Biomass boiler | £5,000 |
| Air-to-water or ground source heat pump, eligible off-grid properties heated by LPG or oil | £9,000 |
Voucher validity differs by technology: air-to-water, air-to-air and biomass boiler vouchers last 3 months, while ground source heat pump vouchers last 6 months1. The scheme has been changed several times since launch, including the increase in heat pump grant levels to £7,500 on 23 October 2023, the removal on 8 May 2024 of the requirement to have no outstanding loft and cavity wall insulation recommendations on the property's Energy Performance Certificate, and updates to Permitted Development Rights on 29 May 2025 covering boundary distances, size limits and the number of heat pumps allowed in a detached home1. On 28 April 2026 eligibility was expanded for multi-technology installations, £2,500 grants for air-to-air heat pumps were introduced, the requirement for a valid EPC was relaxed, installers were mandated to deduct BUS grants from upfront costs, and MCS became the sole certification scheme1. On 21 July 2026 installers could apply on behalf of eligible off-gas grid property owners in England and Wales for a £9,000 grant for an air-to-water or ground source heat pump, for properties heated by oil or LPG1.
"The Government confirmed funding for further years up to 2029/30 through the Warm Homes Plan in January 2026."
Why it matters for households
For a household weighing up a heat pump, the practical effect of the confirmation is that the grant is not tied to a single financial year. Funding is stated to run to 2029/30, so the scheme's existence beyond the current year does not depend on a further announcement1. The £400 million for 2026/27 is nonetheless a capped budget, and vouchers are issued first come, first served until that cap is reached, so timing within a year can affect whether a voucher is issued at all1.
The grant reduces the upfront cost of an installation rather than the running cost: the price paid by the property owner is the total installation cost less the grant value, and since 28 April 2026 installers have been required to deduct the grant from upfront costs rather than have the household wait for payment1. Eligibility depends on the technology, the property and MCS certification of the installer, and the eligibility rules and application process set out how those conditions apply. Households on the gas grid and those off it face different grant values, with the higher £9,000 rate reserved for eligible off-gas grid properties heated by oil or LPG1. The statistics do not report how many households are currently waiting for vouchers, or what share of the 2026/27 budget has been committed.
What happens next
The next publication of these statistics is scheduled for 24 September 20261. Statistics on the uptake of air-to-air heat pumps will be incorporated into the release once the first grants have been paid1.
Sources1 cited
- [](https://assets.publishing.service.gov.uk/media/6a855be254bcee010d5144fa/Boiler_Upgrade_Scheme_BUS_Statistics_July_2026.xlsx), assets.publishing.service.gov.uk