The UK Government has announced a significant increase in funding for the Boiler Upgrade Scheme (BUS) as part of its broader efforts to decarbonise home heating and improve energy efficiency across the country. As a central component of the Government’s Warm Homes Plan, the BUS supports the installation of low-carbon heating systems such as heat pumps and biomass boilers, helping homeowners reduce their carbon footprint while lowering their energy bills.
Increased funding for 2024/2025
On 21 November 2024, the department for Energy Security and Net Zero announced an additional £30 million* in funding for the 2024/2025 financial year, raising the total BUS budget to £180 million*. This increased funding will help meet the growing demand for low-carbon heating solutions and ensure that more homes can benefit from the scheme.
In addition, the Government has authorised Ofgem to over-allocate vouchers up to £250 million*. This decision aims to provide greater certainty for both homeowners and installers, ensuring that grants will remain available throughout the year and allowing the scheme to continue supporting the transition to cleaner heating systems.
Looking ahead to 2025/2026
The funding increase for 2024/2025 is part of a wider commitment to low-carbon heating technologies. The Government has also confirmed that BUS funding will rise to £295 million* in 2025/2026. This reflects the growing importance of decarbonising heating systems and demonstrates the Government’s long-term commitment to supporting the transition away from fossil fuels.
Why has there been an increase?
The funding increase comes as part of the UK’s efforts to move along its transition to net-zero emissions. With the UK’s building stock among the least energy-efficient in Europe, initiatives like the Boiler Upgrade Scheme are essential to reducing carbon emissions and improving energy efficiency across the country.
The funding boost is designed to meet demand and ensure that the BUS continues to provide accessible and affordable low-carbon heating options to homeowners across the UK. The Government has also pledged to remove the planning rule that heat pumps cannot be installed within one meter of a property boundary, making it easier for homeowners to install heat pumps and further expanding the reach of the scheme.
Faisal Hussain, HIES CEO, comments:
“The Government’s decision to increase funding for the Boiler Upgrade Scheme is a vital step in supporting the transition to net-zero emissions. This additional funding will make low-carbon heating technologies more accessible and affordable for more homeowners, helping to reduce carbon footprints and improve energy efficiency across the UK. The move is a clear commitment to ensuring that sustainable heating solutions are widely available, and we look forward to seeing more homeowners make the switch to greener, cleaner heating systems.”
Sources: *https://www.ofgem.gov.uk/environmental-and-social-schemes/boiler-upgrade-scheme-bus