Reported cuts to the Boiler Upgrade Scheme could make low-carbon heating less affordable and threaten skilled jobs, an industry expert has warned.
More than £687 million has been paid through the Boiler Upgrade Scheme since it opened, as reports suggest ministers are considering cutting hundreds of millions of pounds from the programme.
The scheme helps households in England and Wales meet the upfront cost of replacing fossil-fuel heating with eligible low-carbon systems. Current support is worth £7,500 towards an air-source or ground-source heat pump, rising to £9,000 for qualifying off-gas-grid homes heated by oil or liquefied petroleum gas.
The proposed reductions have not been confirmed. However, the prospect of lower funding has prompted concern that fewer households would be able to afford the switch and that uncertainty could weaken confidence across the heat-pump supply chain.
New Ofgem figures covering the period from the scheme’s launch in May 2022 to 30 September 2026 show that 160,874 voucher applications were received and 106,185 vouchers were issued. A total of 96,611 vouchers had been redeemed, with £687.45 million paid in grants.
Spending has accelerated as uptake has grown. Ofgem recorded £50.0 million of expenditure in the scheme’s first year, compared with £232.3 million between April 2025 and March 2026. Its latest update listed £143.585 million remaining for the current scheme year, while noting that this figure is dynamic because vouchers may expire and funds can return to the budget.
The regulator’s annual report shows that 31,104 low-carbon heating systems received grant support in the year to March 2026 alone. Applications during that year increased by 19% compared with the previous year, while 97.6% of grants paid since the scheme began were for air-source heat pumps.
Lloyd Greenfield, CEO of renewable-energy installer Glow Green, said, “Cutting funding for the Boiler Upgrade Scheme would be a short-sighted decision that risks undermining the UK’s transition to low-carbon heating.
“At Glow Green, we install both solar panels and heat pumps, so we understand the challenges homeowners face when considering a heat pump, particularly the high upfront costs and potential need for new radiators or pipework. Reducing grants would make the transition even less affordable, discouraging consumers and putting small specialist heat-pump businesses and skilled jobs at risk.”
The warning highlights the gap between the headline grant and the total amount some households may need to spend. It also underlines why stable support and clear eligibility rules can influence whether homeowners proceed with an installation.
Lloyd added, “With home heating contributing significantly to the UK’s carbon emissions, continued support is essential to encourage households to move away from gas boilers. Cutting funding risks slowing progress towards the government’s target of reaching net zero greenhouse gas emissions by 2050.
“While solar panels can offer more immediate financial benefits, heat pumps play a vital role in decarbonising home heating. The government should be providing long-term certainty and financial support to help consumers make the switch and enable the industry to grow.”
Until ministers announce a final decision, households considering an installation should check the current eligibility rules and grant values through official scheme guidance. Any eventual impact will depend on the size and timing of a reduction, whether eligibility or grant values change, and how existing applications are treated.
