The Boiler Upgrade Scheme is under renewed pressure. Industry bodies, including the National Residential Landlords Association (NRLA) and The Eco Experts, have issued urgent calls for more funding, warning that the current budget risks cuts that would derail the UK’s heat pump rollout targets.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) provides grants of £7,500 for air-source heat pumps and £7,500 for ground-source heat pumps, reducing the upfront cost for homeowners. Launched in 2022, it is a key government policy to encourage the shift away from gas boilers. However, as The Eco Experts reports, industry voices are now warning that the scheme is “underfunded and at risk of being cut”, a move that would hit homeowners hardest.
The funding gap: what the numbers say
The scheme has historically underspent its allocated budget. In the 2023/24 financial year, only around 60% of the £450 million budget was used, according to government data. Yet the NRLA, in its call for more funding, argues that the underspend reflects not a lack of demand but a lack of awareness and installer capacity. The catch is that Treasury officials may see that underspend as a reason to trim the budget, not expand it. For a typical 3-bed semi, a heat pump installation costs between £10,000 and £15,000. The £7,500 grant brings that down to £2,500–£7,500, still a significant outlay for many households.
What this means for your EPC and property value
For homeowners, the stakes are high. An Energy Performance Certificate (EPC) rating of C or above is now a minimum for new tenancies in England and Wales under the Minimum Energy Efficiency Standards (MEES). A heat pump can lift a D-rated property to a C, but only if the home is well insulated. Without insulation, a heat pump will struggle to heat the home efficiently, and the grant money is wasted. The BUS does not cover insulation costs, which can add £5,000–£10,000 for a typical semi-detached house. Homeowners should factor in the full cost of fabric upgrades before applying.
Who qualifies, and who doesn’t
The BUS is available to homeowners and small landlords in England and Wales. Properties must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. The scheme is first-come, first-served, and the current allocation runs until March 2028. But if funding is cut, the queue could close early. The NRLA’s call for more funding is partly driven by the need to include more landlords, who currently face higher costs and stricter EPC deadlines. Under the proposed Future Homes Standard, all new homes from 2025 must have low-carbon heating, but existing homes are not covered.
Next steps for homeowners
If you are considering a heat pump, the message is clear: apply now. The Boiler Upgrade Scheme is open until 2028, but political and fiscal pressures could change that. Check your EPC rating first, if it is D or below, invest in insulation before applying. Contact an MCS-certified installer for a quote. The £7,500 grant is deducted at the point of installation, so you do not need to pay upfront and claim back. For landlords, the NRLA’s campaign for extended funding may yield results, but do not wait. The window for generous subsidies is narrowing.
Frequently Asked Questions
The grant is £7,500 for both air-source and ground-source heat pumps. It is deducted from the installation cost by your MCS-certified installer.
No. Your property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. If your EPC is below E, you need to improve insulation first.
Industry bodies are warning of potential cuts due to underspend, but no official decision has been made. The scheme is currently funded until March 2028.
