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Written by: EnergySwitch editorial team · Last reviewed: 28 October 2026
Direct answer: The Budget on 28 October 2026 did not scrap the Boiler Upgrade Scheme (BUS) or change the grant amounts. The Budget document says the government will keep the scheme at its current funding level of £400 million in 2027-28, rising broadly in line with inflation after that. Separately, it will save £1 billion of capital grant from the wider Warm Homes Plan. As of 28 October 2026, GOV.UK and Ofgem still list a grant of £7,500 towards an air source or ground source heat pump in England and Wales.
What the Budget confirmed (28 October 2026)
Confirmed in the official Budget 2026 document:
- Boiler Upgrade Scheme kept, not abolished. The government says it “remains committed to heat pump deployment and will maintain the Boiler Upgrade Scheme at current funding levels of £400 million in 2027‑28 and rising broadly in line with inflation thereafter.”
- £1 billion saved from the Warm Homes Plan. The Department for Energy Security and Net Zero (DESNZ) is reprioritising its budget to contribute to the Defence Investment Plan, and this includes saving “£1 billion capital grant from the Warm Homes Plan (WHP)”.
- Low-income and social housing funding mostly protected. The Budget says “the majority of WHP funding for low-income households and social housing, delivered by mayors and councils, is protected.”
- Warm Homes Loan Scheme. The Budget notes the government has launched the Warm Homes Loan Scheme to support heat pump and clean technology uptake.
Not mentioned in the Budget: any change to individual grant values, eligibility rules or the scheme’s end date. On 28 October 2026 the GOV.UK and Ofgem scheme pages had not changed.
How this compares with the original plan
The government’s Warm Homes Plan set aside around £2.7 billion for the Boiler Upgrade Scheme to 2029/30 and said funding would “expand each year”. The Budget now says the scheme will be held at its current £400 million in 2027-28, then rise broadly with inflation. The Budget document does not give a new total for the scheme to 2030, so we have not estimated one.
Before the Budget, The Guardian reported on 12 October 2026 that ministers planned to take “hundreds of millions of pounds” from the scheme’s £2.7 billion budget to help fund defence, but not to abolish it. The Budget confirms the scheme stays open; it does not say how much less it will receive than originally planned.
What the scheme offers today
According to GOV.UK and Ofgem, which runs the scheme for the government, the Boiler Upgrade Scheme is open in England and Wales and offers one grant per property:
| Technology | Grant (as listed on 28 October 2026) |
|---|---|
| Air source (air-to-water) heat pump | £7,500 |
| Ground source or water source heat pump | £7,500 |
| Air source or ground source heat pump in an eligible off-gas-grid home heated by oil or LPG | Extra £1,500 (£9,000 in total) until 31 March 2027 |
| Biomass boiler | £5,000 |
| Air-to-air heat pump | £2,500 |
The scheme is installer-led: an MCS-certified installer applies for the voucher on your behalf. You cannot get a grant for a hybrid system (for example a gas boiler with a heat pump), or to replace an existing low-carbon heating system. For eligibility and how to apply, see our heat pump grant guide.
What this means if you are thinking about a heat pump
- The grant is still there. Nothing in the Budget changes the £7,500 grant today. If your quote is based on it, it still applies.
- Funding is capped, so ask about timing. The scheme has a set annual budget. Ask your MCS-certified installer how long your voucher application will take and what happens if rules change before installation.
- Off-gas-grid homes: note the March 2027 date. The extra £1,500 for homes heated by oil or LPG is listed until 31 March 2027. The Budget did not say whether it will continue.
- Think about running costs, not just the grant. A heat pump runs on electricity, so your unit rate and tariff matter. The Budget extends the VAT cut on electricity bills to July 2027; see VAT off electricity. You can also compare gas and electricity tariffs.
We will update this article if GOV.UK or Ofgem announce any change to grant values, eligibility or dates.
FAQ
Was the Boiler Upgrade Scheme cut in the Budget?
The scheme was not abolished and the grant amounts did not change. The Budget says BUS will stay at its current £400 million in 2027-28, rising broadly with inflation, while £1 billion of capital grant is saved from the wider Warm Homes Plan. The Warm Homes Plan had said BUS funding would expand each year.
Is the £7,500 heat pump grant still available?
Yes. On 28 October 2026, GOV.UK and Ofgem both list £7,500 towards an air source or ground source heat pump in England and Wales.
Who can get the extra £1,500?
Until March 2027, GOV.UK says you can get an extra £1,500 towards an air source or ground source heat pump if your home is heated by oil or LPG and has no mains gas connection.
Is the scheme available in Scotland or Northern Ireland?
No. The Boiler Upgrade Scheme covers England and Wales only.
How do I apply?
Through an MCS-certified installer, who applies for and redeems the voucher on your behalf. Our heat pump grant guide explains the steps.
What else did the Budget do for energy bills?
It extended the VAT cut on electricity to July 2027, announced a £100 Household Energy Payment from January 2027 for households in England in council tax bands A to D, and asked Ofgem to remove gas standing charges. See gas standing charges scrapped and our energy price cap hub.
Sources
- HM Treasury, Budget 2026 (HTML) (published 28 October 2026)
- GOV.UK, Budget 2026: Breathing space for today, hope for the future (28 October 2026)
- GOV.UK, Apply for the Boiler Upgrade Scheme: what you can get (checked 28 October 2026)
- Ofgem, Boiler Upgrade Scheme (BUS): property owners (checked 28 October 2026)
- DESNZ, Warm Homes Plan
- The Guardian, Ministers preparing to slash heat pump subsidies to fund defence spending (12 October 2026)
