- Certainty is crucial to successfully decarbonise UK homes and businesses
- BUS has been critical in encouraging heat pump adoption
- Cutting BUS is one of many measures thought to be considered by Chancellor Rachel Reeves
- Addressing the ‘Spark Gap’ should be the priority for driving down energy bills and decarbonising UK heating
The Boiler Upgrade Scheme is critical to the government’s heat pump roll out and its long term fight against high energy bills. Without it, the goal to decarbonise UK homes will suffer a significant set back.
As part of her Autumn Statement on 26th November, Chancellor Rachel Reeves is rumoured to have been considering a number of measures in a desperate effort to kick start the struggling UK economy, and address the high cost of energy for UK homes and businesses.
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According to the papers, this includes: income tax rises, council tax reform, cuts to benefits and welfare spending, changes to Capital Gains Tax, as well as changes to the Warm Homes Plan and heat pump subsidies.
However, we’ve spoken to homeowners who have told us that without the Boiler Upgrade Scheme, they simply wouldn’t have had a heat pump installed.
What do homeowners say?
Freddy Tompkins, from Dorset, said he used the Boiler Upgrade Scheme to install an air source heat pump in May 2025, and said it “really helped reduce the upfront cost”.
Freddy also described it as being “very straightforward” as his installer EE Renewables “handled the entire process”.
Most tellingly of all, Freddy said he would not have had the heat pump installed had it not been for the Boiler Upgrade Scheme.
When you installed your heat pump, did you use the Boiler Upgrade Scheme, the ECO4 scheme or some other grant?
Yes, I used the government’s Boiler Upgrade Scheme to help make the Vaillant air source heat pump more affordable. It was installed in May 2025, and the grant really helped reduce the upfront cost.
If yes, was the grant you used easy to follow and apply for?
It was very straightforward. EE Renewables handled the entire process for me – they checked my eligibility, submitted the application, and managed all the paperwork. The £7,500 grant was then automatically taken off the total cost of the heat pump and installation, which made everything really simple and stress-free.
If it were not for the Boiler Upgrade Scheme, or any other government grant, would you have had your heat pump installed?
Honestly, no. Without the Boiler Upgrade Scheme, we wouldn’t have gone ahead with the installation. The grant made it financially possible for us to make the switch.
Did you get any other energy-saving work done on your house before you began? Insulation, double glazing etc?
Yes, we’ve been gradually improving our home’s energy efficiency over the years. Back in 2012, not long after we moved in, we had 10 solar panels installed by a different renewable energy company. Our home was already well insulated, but we also had the loft insulation redone around the same time to make it even more efficient.
Before you began installing your heat pump, where did you get your information from? Energy provider, online, social media, Ofgem or somewhere else?
Most of my information came from online research. I read articles on energy provider websites, general news outlets, and directly from Vaillant. That helped me understand how heat pumps work and what to expect before deciding to go ahead.
Are you planning to have any further low carbon technology installed? Solar panels, solar battery etc?
At the moment, we don’t have any further plans for additional installations. We’ve only had the heat pump since May, but we’re already very happy with how it’s performing. As the weather has turned colder, we’ve mostly been using it in the evenings to heat our home and water, and it’s been working really efficiently.
We also have a smart meter, which helps us keep an eye on our energy use, alongside the app for the heat pump itself. Together, they make it easy to monitor performance and track how well everything is running.
If you’re looking for info on government grants for heat pumps, read our dedicated page.
Get £7500 towards your heat pump installation through a trusted installer
An MCS-certified heat pump installer can apply for the Boiler Upgrade Scheme on your behalf, get a quote from one now
Michael Senatore, from Wiltshire, also said the heat pump installation was straightforward and simple, and he said the Boiler Upgrade Scheme “definitely influenced my decision to go ahead with the installation”.
When you installed your heat pump, did you use the Boiler Upgrade Scheme, the ECO4 scheme or some other grant?
I had a Vaillant air source heat pump installed about two months ago and used the government’s Boiler Upgrade Scheme. The grant covered £7,500 of the heat pump and installation cost, which made a huge difference.
If yes, was the grant you used easy to follow and apply for?
Yes, the process was very straightforward. EE Renewables handled the entire application for me, so there wasn’t much I needed to do. The grant amount was automatically deducted from the total cost, which made everything really simple.
If it were not for the Boiler Upgrade Scheme, or any other government grant, would you have had your heat pump installed?
The Boiler Upgrade Scheme definitely influenced my decision to go ahead with the installation. Without it, I probably would have delayed the project. Looking back, I wish I had installed the heat pump at the same time as my solar panels, it would have made sense to do it all together since I always planned to switch eventually.
Did you get any other energy-saving work done on your house before you began? Insulation, double glazing, etc.?
Yes, the heat pump installation was actually the second stage of my home energy upgrades. A few years ago, I had solar panels and a battery installed by EE Renewables through the Solar Together group-buying scheme. The system performed really well, but I wanted to go further to improve my home’s efficiency.
Recently, I upgraded to 18 solar panels and two new high-capacity batteries, also from EE Renewables. They even bought back my old battery, which is something not many companies offer. The money from that went toward the new system and inverter.
I’ve only had the air source heat pump for a couple of months, so it’s early days, but it’s been running smoothly so far. It heats water to around 55°C and our house temperature to a constant 22°C. Both of these can be adjusted remotely through an app on my smartphone or the house control unit. I’m expecting to start seeing the real cost and energy savings within a year.
I allowed EE Renewables to remotely monitor my system which they can easily do via a password protected broadband connection to the heat pump control unit and make any adjustments as needed.
Before you began installing your heat pump, where did you get your information from? Energy provider, online, social media, Ofgem or somewhere else?
As an architect, I already had a fair amount of knowledge about renewable systems, but I mainly relied on EE Renewables for expert advice. They had worked on my previous installation, so they understood my home and were able to recommend the most efficient setup.
Are you planning to have any further low-carbon technology installed? Solar panels, solar battery, etc.?
Not at the moment. I already have solar panels, a battery system, and now an air source heat pump, so I feel my home is well-equipped for the time being.<!– wp:acf/cta-card {“name”:”acf/cta-card”,”data”:{“image”:10909,”_image”:”field_block-cta-card_image”,”image_alignment”:”left”,”_image_alignment”:”field_block-cta-card_image_alignment”,”title”:”Are you paying too much for energy?”,”_title”:”field_block-cta-card_title”,”text”:”Compare and switch energy suppliers today with our energy comparison tool – powered by The Energy Shop.”,”_text”:”field_block-cta-card_text”,”price”:””,”_price”:”field_block-cta-card_price”,”priceInfo”:””,”_priceInfo”:”field_block-cta-card_priceinfo”,”merchant”:””,”_merchant”:”field_block-cta-card_merchant”,”button”:{“title”:”Compare energy suppliers for your home”,”url”:”https://compare.theenergyshop.com/?agentID=414-C3vuXT”,”target”:”_blank”},”_button”:”field_block-cta-card_button”,”lytics_experience_id”:””,”_lytics_experience_id”:”field_block-cta-card_lytics_experience_id”,”button_alignment”:”left”,”_button_alignment”:”field_block-cta-card_button_alignment”,”hide_on_mobile”:”0″,”_hide_on_mobile”:”field_block-cta-card_hide_on_mobile”},”mode”:”preview”} /–>
What will happen in the Budget?
On the face of it it’s unlikely that the government will cut the Boiler Upgrade Scheme because to do so would be to scale back one of its flagship clean energy initiatives and possibly abandon the idea of moving the UK away from fossil fuels.
However, in the run up to the Budget on the 26th November there is huge speculation that Rachel Reeves might announce some cuts to the initiative, particularly as she has reportedly U-turned on the idea of raising income tax.
If the Boiler Upgrade Scheme is cut, it would mean the huge progress the UK has made in upgrading homes from gas boilers to heat pumps – installations increased by 56% in 2024 alone – would come to a halt.
It would also mean the government would be in effect giving up on its target of hitting 600,000 installations a year by 2028. Even with the substantial growth in installations since 2022, there are not nearly enough heat pumps going live to hit the government’s target.
It is more than likely that instead of cutting back the Boiler Upgrade Scheme, the government will make it means tested so that it is better targeted at fuel-poor households.
One of the criticisms is that the households applying for it are in weather homes that don’t necessarily need it.
Analysis in 2024 from the Energy and Utilities Alliance (EUA) showed that every region in England and Wales saw wealthy areas get a “disproportionate number of subsidised greener heating appliances”.
For instance, according to the EUA, Boiler Upgrade Scheme data showed that in England the most subsidised local authority was South Hams in Devon, which received over fifty times the amount of support than Blackpool, the least subsidised local authority outside London.
Get £7500 towards your heat pump installation through a trusted installer
An MCS-certified heat pump installer can apply for the Boiler Upgrade Scheme on your behalf, get a quote from one now
What do the experts say?
In a statement released in October 2025, the EUA called for the Boiler Upgrade Scheme to “target the right homes” by pinpointing homes with direct electric heating, instead of gas boilers.
According to the EUA, homes with direct electric heating can make massive savings, much bigger than those who upgrade from a gas boiler, with the average energy bill possibly falling by nearly £1800 a year.
A more focused Boiler Upgrade Scheme could definitely help, potentially means tested and aimed at helping fuel-poor households would get around the criticism that the initiative is only benefitting households who could afford heat pumps anyway.
At present the only criteria for the Boiler Upgrades Scheme is that:
- You must own the property you’re applying for
- You must replace fossil fuel heating systems, such as oil or gas
- You must have a valid EPC certificate
You can still get £5,000 towards a new boiler biomass boiler under the Boiler Upgrade Scheme if your property is off the gas grid, it is in a rural location, and your boiler has an emissions certificate showing that polluting emissions are kept to a minimum.
Crucially, the Boiler Upgrade Scheme is not available for homes who have already received public funding for a heat pump or biomass boiler in the past through initiatives such as the Energy Company Obligation (ECO) scheme.
While this particular detail is unlikely to change, the government might, instead of cutting it back, bring the Boiler Upgrade Scheme in line with the ECO, which is specifically designed to help poorer households.
Will the government cut the Boiler Upgrade Scheme?
It’s looking increasingly likely that the government WON’T cut the Boiler Upgrade Scheme, because doing so would mean pivoting away from its low-carbon goals. The recent news that the Boiler Upgrade Scheme is being expanded to include £2,500 towards air-to-air heat pumps, the first time that air conditioning units have been part of it.
This update from Number 10 comes as 2025 is set to be a record-breaking year for Boiler Upgrade Scheme applications at 3,968. Also now included in the Boiler Upgrade Scheme is heat batteries, which can store heat overnight for use in the day – households can also get £2,500 towards one.
Minister for Energy Consumers Martin McClusky said that the government wanted to “make sure as many people as possible can benefit [from clean heating]” and give people “greater choice when updating their homes”.
This means the is unlikely to cut back on the Boiler Upgrade Scheme, as otherwise it would be strange to expand the initiative only to then claw it back weeks later.
Talking to The Eco Experts in October 2025, Bean Beanland, the head of the Heat Pump Federation, said the government needed to make heat pumps “the economic choice” for households by fixing a phenomenon known as the ‘Spark Gap’, the difference between the price of gas and electricity, often cited as the biggest barrier to heat pump installation, especially for poorer households.
This is a view shared by a lot of people in the clean energy industry, and part of fixing it would have to be moving policy costs, also known as ‘green levies’ away from the price of electricity and into general taxation.
Whatever decision the Chancellor chooses to make, it is clear that the Boiler Upgrade Scheme is encouraging heat pump installations one way or another, and the feedback from our case studies is that without it, households simply wouldn’t install them.
Get £7500 towards your heat pump installation through a trusted installer
An MCS-certified heat pump installer can apply for the Boiler Upgrade Scheme on your behalf, get a quote from one now
