The scheme can offer thousands of pounds in support if you are eligible
Andy Burnham’s government has today announced a significant update on grants worth thousands for UK homes. The Boiler Upgrade Scheme is a grant available to households across England and Wales, offering thousands of pounds towards the installation of a low carbon heating system.
Figures released today with little fanfare – viewable here – reveal that August recorded the highest ever number of heat pump vouchers issued under the Boiler Upgrade Scheme (BUS). The scheme provides grants to encourage property owners to replace existing fossil fuel heating systems with more efficient, low carbon alternatives, including air source heat pumps, ground source heat pumps and, in certain limited circumstances, biomass boilers.
Ofgem says that eligible homeowners can claim £9,000 off the cost and installation of air-to-water or ground source heat pumps in qualifying off-gas grid properties until 31 March 2027. Alternatively, householders could claim £7,500 off the cost and installation of an air source heat pump; or £7,500 off the cost and installation of a ground source heat pump; or £5,000 off the cost and installation of a biomass boiler.
These grants are intended to help UK property owners in meeting the considerable upfront expense of fitting a low carbon heating system. The surge in uptake suggests that a growing number of people across Britain are making the switch to cleaner energy sources, as the Iran war has pushed bills higher.
There has been around a 40% rise in BUS vouchers issued compared with the same period in 2025, reports the Mirror. Heat pumps are highly efficient electric devices that draw and amplify warmth from the outside air or ground into a building, according to the government. They can significantly reduce a property’s energy demands when replacing technologies such as gas boilers.
Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit (ECIU), said in a statement today: “August’s record month for heat pumps under the Boiler Upgrade Scheme is another signal that this net zero technology is moving into the mainstream, with people seeing the clean transition as a route to energy independence and more stable bills. If the UK had fewer Liquefied petroleum gas (LPG) and gas boilers, we’d be far less exposed to the international oil and gas price spikes that have repeatedly driven up bills and triggered energy crises.
“For years, boiler industry lobbying helped keep the UK locked into gas heating for longer than necessary, leaving households and the wider economy vulnerable to price shocks. More households in the UK are recognising that electric heat pumps offer a route away from the volatility of oil and gas markets, and other countries are already way ahead on installations.”
The scheme can be a big help to British homeowners. Matthew Bell told the Energy Saving Trust: “My wife says that it’s the first house where she hasn’t felt the cold. You feel like you have a level of control over the feel of the house that you never quite got with the gas boiler.”
This latest development comes as UK energy costs are being pushed higher by the conflict in Iran. A deputy governor at the Bank of England has warned that interest rates may need to rise should energy prices remain at their current levels.
Clare Lombardelli today said: “The main driver of near-term inflation is developments in global energy prices. The energy shock due to the conflict in the Middle East has already pushed up UK inflation, and we expect it to continue to do so in the coming months. There is significant uncertainty about how the conflict will develop, and so about the evolution of energy prices.”
Eligibility for the Boiler Upgrade Scheme
Installers holding MCS certification are able to apply for and redeem Boiler Upgrade Scheme vouchers on behalf of property owners. A number of energy companies across the UK provide guidance on the scheme, with British Gas, E.ON Next and EDF Energy all publishing details on their websites.
Government guidance stipulates that your property must be a residential dwelling or small to medium-sized non-domestic premises situated in England or Wales, and must hold a valid energy performance certificate.
Other conditions apply. For full details, to apply or to find out further information regarding eligibility, visit the dedicated government web page on the subject.
