Ofgem published updated guidance for installers and property owners on 2 July 2026, reflecting changes to the Boiler Upgrade Scheme ahead of applications opening on 21 July 20261. The scheme's regulations were amended after being laid in Parliament on 25 March 2026 and coming into force on 28 April 2026, introducing changes set out in the government's November 2025 consultation response1.
From 21 July 2026, the grant rises from £7,500 to £9,000 for eligible properties not connected to the gas grid1. The uplift applies to homes off the gas network; the report does not set out a separate figure for properties that are connected. Ofgem co-hosted a forum with the Department for Energy Security and Net Zero on 23 June to explain the grant uplift and answer installer questions1. In June 2026, MCS:2025 was approved by the Secretary of State as a consumer code for the scheme1.
"Updated guidance for installers and property owners reflecting the scheme changes was published on 2 July, 30 ahead of applications opening on 21 July 2026."
The annual report covers Scheme Year 4, from 1 April 2025 to 31 March 2026. Ofgem received 45,880 stage 1 applications during the year, issued 39,435 vouchers worth over £295 million, rejected 2,645 applications that failed eligibility checks and recorded 3,301 withdrawals1. Since launch on 23 May 2022, 80,098 vouchers have been redeemed, with £560.3 million paid; 98% of supported systems were air source heat pumps1. Of the grants paid, 76.3% (61,076) replaced fossil fuelled heating, 10.2% replaced other heating types such as direct electric, and 13.7% were for eligible self-build properties with no previous heating system1. At the end of March 2026, 1,789 MCS certified installation companies were registered, and the top 10 installers by application volume accounted for over 32% of all grant applications received1.
On compliance, Ofgem selected 416 installations that received grant payments in 2025 to 2026 for statistical audit, with an initial compliance rate of 98.52% for those closed, and conducted 626 targeted audits on installations identified as having a potential increased risk of non-compliance, where the initial compliance rate was 89.38%1. The value of payments made in error during the year is estimated at £4.5 million, or 1.9% of total payments, within a confidence interval of £1.4 million to £7.6 million1. Ofgem closed 876 compliance investigations, from which 367 (41.9%) applications were found to be non-compliant, and £1,960,000 of public funds were either protected or identified for recovery1. The report's highlights state £3,595,500 was protected and £1,205,000 identified for recovery, a combined £4.8 million1.
Why it matters for households
The grant amount a household can receive depends on whether the property is connected to the gas grid, so the 21 July change creates two different rates. Homes off the gas network see the higher figure of £9,000; the report does not state a revised amount for gas-connected homes, so the position for those properties has not been reported1. The scheme remains a two-stage process: an installer submits an initial voucher application, the property owner consents and verifies the details, and after commissioning the installer submits a redemption application before payment is made1. Ofgem reports it issued over 99% of air source heat pump property owner consent requests within 10 working days of receiving the initial application, and processed and paid 97% of voucher redemption applications within 10 working days across the year1. The compliance figures indicate that most audited installations met the rules, but a minority did not, and payments made in error represent a small share of the total.
What happens next
Applications open on 21 July 2026 under the amended regulations1. The Warm Homes Plan confirms the scheme's extension to 2030 with total investment of around £2.7 billion and annual funding increasing over time1.
Sources1 cited
- BUS Annual Report 2025 to 2026, ofgem.gov.uk