UK Boiler Upgrade Scheme gets £1.5bn funding boost to help take more homes off gas

The UK’s Boiler Upgrade Scheme (BUS) – which provides homeowners with grants to switch from fossil fuel heating systems to clean energy heat pumps – will receive an extra £1.5bn in funding to support the electrification of residential heating in the UK.

In October, the heat pump grant was increased by 50% to £7,500, which has already resulted in a 57% increase in the number of BUS applications. Now, the government has pledged additional funding for between 2025-2028 as part of the push to get the UK’s homes off gas.

The government said the boost has been brought in so that more homes can install heat pumps, helping people transition easily to the modern, clean heating systems needed to become a net zero nation. Its aim is for 600,000 heat pumps to be installed in homes and businesses each year by 2028.

The funding announcement, which is part of a wider £6 billion package to include businesses and the public sector, is a welcome step for us here at Aira. We’re on a mission to help one million UK customers switch from gas boilers to a clean energy-tech solution over the next decade.

In the UK we still rely on 25 million fossil fuel boilers to heat our homes, which accounts for 16% of our CO2 emissions1. By switching to an air source heat pump, households can reduce heating costs by 25% and household carbon emissions 75% – a number that rises to 100% with fossil free energy sources.

How to access the Boiler Upgrade Scheme

At Aira, we manage the grant application for you and there is 0% VAT to pay on any clean energy improvements made to your home until 31st March 2027, which effectively saves you 20%.

To access the Boiler Upgrade Scheme, Aira will check your eligibility via the government website and include the discount in your quotation. As we’re Microgeneration Certification Scheme (MCS) certified installers, we’ll claim the grant on your behalf.

We handle the application for you and keep you updated along the way - so you don't need to worry.

Extra grants and schemes are available for solar and insulation too. Talk to your Aira Clean Energy Expert to find out more about the latest incentives and how they work.

Call us on:0330 822 5493

* Source: IPCC