Boiler Upgrade Scheme applications climb to record quarterly level

UK – Boiler Upgrade Scheme voucher applications reached their highest quarterly level to date between February and April 2026, with 12,555 applications received and 9,988 vouchers issued. Ofgem’s latest quarterly report shows £74.85 million of vouchers were issued during the period, taking the total value of vouchers issued since the scheme launched to £620.5 million.

Voucher applications continue to rise

The latest figures cover the period from 1 February to 30 April 2026 and mark the 16th quarterly report since the Boiler Upgrade Scheme launched in May 2022.

The 12,555 voucher applications received in the quarter represent an increase on the previous reporting period, when 11,278 applications were submitted. The number of vouchers issued also rose significantly, from 7,160 in the previous quarter to 9,988 in the latest period.

Since launch, Ofgem has received 126,577 voucher applications and issued 88,138 vouchers under the scheme.

Grant payments remain steady

Ofgem reported 7,416 voucher redemption applications during the quarter, with 7,509 grants paid. The value of grant payments made during the period was £56.26 million.

Across the full lifetime of the scheme, 82,651 grants have now been paid, with total grant payments reaching £579.38 million.

Air source heat pumps dominate installations

Air source heat pumps continue to account for the overwhelming majority of Boiler Upgrade Scheme-supported installations. Of the 82,651 grants paid to date, 80,708 were for air source heat pumps, representing 97.6% of the total.

Ofgem’s quarterly report does not break down the air source heat pump figure between air-to-water and air-to-air systems. However, current Ofgem guidance lists £7,500 support for air-to-water heat pumps and ground source heat pumps, including water source heat pumps, £2,500 for air-to-air heat pumps, and £5,000 for biomass boilers.

While the Boiler Upgrade Scheme can support eligible homes and non-domestic buildings in England and Wales, air-to-air heat pumps are only eligible for residential buildings. Ofgem describes BUS as providing upfront grants towards heat pumps and biomass boilers in homes and non-domestic buildings.

From 21 July 2026 to 31 March 2027, eligible off-gas-grid homes and small businesses in England and Wales that rely on heating oil or LPG will be able to receive a £9,000 grant for air source or ground source heat pumps.

Ground source heat pumps accounted for 1,503 grants, or 1.8%, while biomass boilers accounted for 403 grants. Shared ground loop ground source heat pumps represented 37 grants.

South East and South West lead regional uptake

The South East remains the leading region for grants paid, with 16,525 installations supported, equal to 20% of the total. The South West followed with 14,880 grants, or 18%.

The East of England accounted for 11,361 grants, while the East Midlands recorded 8,130 and Yorkshire and The Humber 7,553. Wales accounted for 4,255 grants, with London at 4,544.

Gas remains the most common system replaced

Gas heating systems remain the most common technology replaced through the scheme. Of all grants paid to date, 45,657 replaced gas systems, representing 55.2% of the total.

Oil systems were the second most common, with 14,182 grants, or 17.2%. Ofgem said replaced fossil fuel systems accounted for 76.3% of all grants paid.

The forthcoming £9,000 grant level for eligible off-gas-grid oil and LPG properties is therefore significant for a section of the market already represented in the scheme data. Oil systems account for 14,182 of the heating systems replaced so far, while LPG accounts for 2,409.

A further 11,285 grants were paid for eligible self-build properties, representing 13.7% of total installations.

Year five budget set at £400 million

For the 2026-2027 scheme year, the Boiler Upgrade Scheme budget has been set at £400 million. Ofgem said £71.3 million had been allocated so far in April 2026, leaving £328.7 million remaining for the rest of the scheme year.

The report notes that part of the 2026-2030 scheme budget has been set aside for potential future innovation activity, including initiatives to support wider heat pump rollout.