Just 20% of the government’s £450 million heat pump grant fund has been claimed since the scheme launched in May 2022. That is the headline from Energy Live News, which reports that while Britain swelters through another summer of record temperatures, the flagship Boiler Upgrade Scheme (BUS) is barely making a dent in fossil fuel heating.
As reported by Energy Live News, the Department for Energy Security and Net Zero confirmed that only 21,000 grants had been paid out by the end of March 2024, against a target of 600,000 installations by 2028. That is a gap of 579,000 heat pumps, and the clock is ticking.
Why the grants are sitting unused
The BUS offers homeowners in England and Wales up to £7,500 off the cost of an air-source heat pump. Yet a typical installation runs between £10,000 and £15,000, according to the Energy Saving Trust. That leaves a cash gap of £2,500 to £7,500, before any additional work on radiators or hot water cylinders. For many households, that is still a five-figure sum they do not have.
But money is only part of the problem. Installer capacity is the other. The UK has roughly 4,000 certified heat pump installers, according to the Microgeneration Certification Scheme. To hit 600,000 installations by 2028, the country would need around 12,000. The government’s Heat Training Grant, which covers 70% of retraining costs for gas engineers, has seen low uptake too.
What this means for your EPC and bills
Heat pumps are the single most effective upgrade for improving an EPC rating from D or E to C or B, according to government modelling. A typical 3-bed semi with a gas boiler and poor insulation sits at EPC D. Adding a heat pump plus basic loft insulation can lift it to C, saving roughly £400 a year on heating bills at current price cap levels.
Yet the upfront cost remains the blocker. Ofgem’s price cap currently stands at £1,928 for a typical dual-fuel household. A £10,000 heat pump represents more than five years of energy bills. Even with a £7,500 grant, the payback period stretches beyond a decade for most homes without concurrent insulation work.
What this misses is the hidden cost of inaction. The government’s own carbon budgets imply that gas boilers will face rising carbon taxes from 2030. The longer you wait, the more you may pay, either in direct levies or through a lower EPC when you sell.
Who qualifies, and who doesn’t
The BUS is available to homeowners and self-builders in England and Wales. Landlords and new-build developers are excluded. You must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. The property must have been built before 2025, and you need to have an existing fossil fuel heating system (gas, oil, LPG or electric) to replace.
The catch is that many older homes, particularly those built before 1930, have solid walls and no cavity to fill. For those properties, the grant alone rarely covers the full cost of a heat pump plus necessary internal wall insulation. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing.
What you can do now
If you are considering a heat pump, start with an energy audit. The Energy Saving Trust offers a free home energy check online. Then get at least three quotes from MCS-certified installers. The £7,500 grant is deducted from the invoice by the installer, you do not need to claim it yourself.
But do not wait until winter panic. Installer lead times are already 8–12 weeks in most regions. The scheme runs until 2028, but the budget is fixed. If uptake suddenly surges, the money could run out before the target is met. Book a survey now, assess your insulation first, and decide whether the remaining cost makes sense for your home.
Frequently Asked Questions
The Boiler Upgrade Scheme only covers England and Wales. Scotland has its own Home Energy Scotland loan and grant scheme, which offers up to £7,500 for heat pumps plus an optional interest-free loan. Northern Ireland runs the Northern Ireland Sustainable Energy Programme, which provides grants for heat pumps up to £4,500.
Yes, in most cases. Heat pumps work best in well-insulated homes because they run at lower flow temperatures than gas boilers. If your loft or cavity walls are uninsulated, the installer may refuse to proceed, or the system will be inefficient. The BUS requires a valid EPC with no outstanding insulation recommendations.
