The Boiler Upgrade Scheme has just been given a major funding boost. If you’ve been thinking about switching to a heat pump but worried the grant money might run out, this is reassuring news. On 5 November 2026, the Department for Energy Security and Net Zero (DESNZ) gave Ofgem permission to over-allocate Boiler Upgrade Scheme (BUS) vouchers, up to a total of £520 million for this financial year.
What’s changed with the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme budget for 2026/27 was set at £400 million back in April. Demand has been rising steadily, and applications have kept climbing throughout the year.
Rather than risk the scheme pausing before the financial year ends, the Government has allowed Ofgem to issue vouchers worth up to £520 million, around £120 million more than the original budget. In its own words, the aim is to provide certainty that vouchers will continue to be available.
In short: the grant isn’t going anywhere for now, and homeowners and installers can keep planning projects with confidence.
Why it matters
High demand is a good sign. More households than ever are choosing low-carbon heating. But it also raised the question of whether funding would last until March. This decision removes much of that uncertainty, so you don’t need to rush a decision or worry about losing out mid-project.
How much can you get from the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is available to eligible homes and small non-domestic properties in England and Wales. Current grant levels are:
| System | Grant |
|---|---|
| Air source heat pump (air-to-water) | £7,500 |
| Ground or water source heat pump | £7,500 |
| Air or ground source heat pump in an off-gas-grid home currently heated by oil or LPG | £9,000 (until 31 March 2027) |
| Biomass boiler | £5,000 |
| Air-to-air heat pump (homes only) | £2,500 |
The higher £9,000 grant for homes moving away from oil or LPG is only confirmed until 31 March 2027, so if that applies to you, now is a great time to get the ball rolling.
How the Boiler Upgrade Scheme grant works
You don’t apply for the grant yourself. Your MCS-certified installer applies on your behalf, and the grant is taken straight off the cost of your installation. A few things to keep in mind:
- Only one grant is available per property.
- Hybrid systems (for example, a gas boiler paired with a heat pump) aren’t eligible.
- You can’t use the grant to replace an existing low-carbon heating system.
- Your installer will check that the system meets the scheme’s efficiency and capacity standards.
Boiler Upgrade Scheme FAQs
Is the Boiler Upgrade Scheme still open?
Yes. The Boiler Upgrade Scheme is open to applications in England and Wales. The decision to allow vouchers worth up to £520 million is designed to keep grants available for the rest of the 2026/27 financial year, which runs until 31 March 2027.
Will the grant run out?
No scheme budget is unlimited, and the Government hasn’t confirmed funding levels beyond March 2027. However, the extra £120 million of headroom gives much more certainty for anyone planning an installation this winter or early next year.
Do I have to pay the grant back?
No. The Boiler Upgrade Scheme is a grant, not a loan. The voucher value is deducted from your installation cost, so you simply pay the reduced amount on your quote.
Who can apply for the Boiler Upgrade Scheme?
Property owners in England and Wales, including homeowners, landlords and small businesses, can benefit, as long as the property and the new system meet the scheme’s eligibility rules. Your installer will check these with you during the survey and make the application for you.
Thinking about a heat pump?
With funding now secured for the rest of the year, there’s never been a better time to explore whether an air source or ground source heat pump is right for your home. At PBT Installations, we’ll survey your property, recommend the right system, and handle the Boiler Upgrade Scheme application for you, so the grant comes straight off your quote.
Get in touch today to book your free survey.
Sources: GOV.UK – Approval to over-allocate vouchers, November 2026; GOV.UK – 2026/27 budget notice; Ofgem – Boiler Upgrade Scheme