- More than 4,000 applications for the Boiler Upgrade Scheme were received in March 2025, a 88% year on year increase
- The consultation will determine if the scheme should be expanded
- Changes to the scheme could see families potentially access air-to-air heat pumps and electric heating technologies
Homeowners are set to have better choices to access heating systems and reduce costs as part of government improvements to the Warm Homes Plan.
The government has launched a new consultation to expand the Boiler Upgrade Scheme, after it experienced its highest month of applications in March 2025, at 4,028 – a 88% increase year on year.
Potential changes to the scheme could see families potentially access air-to-air heat pumps and electric heating technologies, such as heat batteries, which are not currently eligible for grants under the scheme.
This is also alongside new purchase and new ownership models, which could spread the cost of a heat pump over several years, or give households the opportunity to lease one for a monthly fee instead.
Ned Hammond, deputy director (customers), Energy UK welcomed the possible expansion to the scheme describing it as a “really positive move”.
“More flexibility in the way customers can pay for these technologies will also help make efficient and smart heating systems, such as heat pumps, heat batteries and heat networks, available to even more customers who are struggling with high energy bills and looking for an alternative to costly gas boilers,” Hammond said.
These updates are a part of the government’s Plan for Change and Miatta Fahnbuller, Minister for Energy Consumers, said this would enable more households to “take up the offer” of switching to low-carbon heating, while protecting the pounds in people’s pockets by making more options available.
“Our Warm Homes Plan will mean lower bills and warmer homes for millions of families – helping drive better living standards, as part of the Plan for Change,” Fahnbulleh said.
“Following a record-breaking month for applications to our BUS, we are now proposing to give working families more choice and flexibility to pick the low-carbon upgrades that work best for them”.
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What is the current Boiler Upgrade Scheme?
The BUS scheme was intended to support the decarbonisation of homes and small non-domestic buildings in England and Wales.
It provides upfront grants of up to £7,500 to encourage homeowners to replace existing fossil fuel heating with more efficient, low-carbon heating systems, including heat pumps and biomass boilers.
Right now, the scheme only applies to air source and ground source heat pumps, but this consultation is to determine if it will expand to air-to-air heat pumps and electric heating technologies.
If you’re eligible, installers will apply for the £7,500 grant on your behalf and remove that amount from the cost of the heat pump installation.
To be eligible, you must meet the following requirements:
- You must own the property you’re applying for, including if its a business, a second home, or a property you rent out to tenants
- You must be replacing fossil fuel heating systems, such as oil, gas, electric of LPG
- You must have a valid EPC certificate
You can get the BUS grant for a biomass boiler if you meet all these requirements:
- You property is off the gas grid
- Your property is in a rural location
- Your boiler has an emissions certificate showing that polluting emissions are kept to a minimum
The BUS is not available to properties that have already received public funding for a heat pump or biomass boiler in the past, through schemes like the Energy Company Obligation scheme.
Properties considered to be social housing under the Housing and Regeneration Act 2008 are also not eligible.
New builds are also not eligible, unless they have been completed with a fossil fuel boiler.
To find out more about the scheme, check out our guide on the BUS.
Government to train ‘clean power army’
Additionally, ministers have also set out plans to train what it calls a “clean power army” by training up to 18,000 more home retrofitters that will help install heat pumps, insulation, solar panels and heat networks, alongside a major new deal to support the UK’s heat pump supply chain.
According to ministers, this will be through the extension of the Heat Training Grant and the launch of the Warm Homes Skills Programme.
Jambu Palaniappan, CEO, Checkatrade, said it “fully supports” the latest government investment in skills and training, as well as the greater choice for homeowners.
“A Checkatrade, we’ve seen the growing importance of green energy to consumers, and with our new Green Hub are more easily connecting them with skilled tradespeople to make their homes more energy efficient,” he said.
“The new funding is a key step towards empowering more people to enter the trade and a boost for the economy, helping to build long-term, sustainable careers for thousands across the UK.”
Charlotte Lee, CEO, Heat Pump Association said that the additional funding to support those wishing to become qualified to install heat pumps is “especially welcome” alongside proposals to expand the BUS to make clean heating solutions an accessible option for more consumers”.
Furthermore, Copeland, a manufacturer of low carbon heating technology based in Northern Ireland, has been awarded £4.6m to expand its manufacturing for heating compression technology to help protect family finances from international gas markets by running on clean electricity.
This investment, according to Fahnbulleh, is backed by a multi-million pound investment from Copeland, and will help support the industries and jobs of the future, while “unlocking economic growth”.
