The Boiler Upgrade Scheme has had its biggest rewrite since launch. The Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026 came into force on 28 April 2026, opening the scheme to air-to-air heat pumps, removing the EPC requirement to apply, putting MCS certification on a statutory footing, and extending the scheme to 2030. A week earlier on 21 April 2026, Energy Secretary Ed Miliband announced a separate one-year uplift to £9,000 for households on oil or LPG. The two changes together rework who can apply, what they get, and how the money is paid.
SI 2026/390 In Force: Five Structural Changes
Sources: legislation.gov.uk, GOV.UK budget notice ·
The Boiler Upgrade Scheme (England and Wales) (Amendment) Regulations 2026 (SI 2026/390) were made on 19 March 2026 and came into force on 28 April 2026. They amend the original 2022 BUS regulations rather than replacing them, and the changes touch almost every operational stage of the scheme.
- Eligible technologies expanded. Regulations 8 and 9 add air-to-air heat pumps as a new eligible plant type alongside the existing air-to-water and ground source pumps, and biomass boilers. Air-to-air grants are restricted to residential properties.
- EPC requirement removed. Regulation 5 strikes the rule that a property must have a valid EPC to be eligible. Where a current EPC exists it remains the primary evidence; where not, the installer submits alternative evidence such as a utility bill showing the existing fuel type plus photographs of the heating system.
- Upfront discount mandated. A new sub-paragraph 14(2)(ca) requires that the installer has "deducted the value of the boiler upgrade voucher for which the application is being made from the total amount quoted to the property owner". Regulation 17(1)(d) reinforces this: installers cannot request payment of the deducted amount unless the application is refused or the voucher revoked. The grant must show on the quote and invoice as a discount, not as a later refund.
- Installer defined as MCS-certified. Regulation 2 redefines "installer" to mean a person certified specifically by the Microgeneration Certification Scheme, removing earlier references to equivalent schemes. Practical industry standard, now on statutory footing.
- Scheme extended to 2030. The scheme's end date moves from 2028 to 2030, aligning with the EPC C deadline for the private rental sector and the Warm Homes Plan spending profile.
The grant amounts themselves are not in the SI; they are determined separately by the Secretary of State under regulation 13 and published as a notice. On 1 April 2026 the Secretary of State approved a budget of £400 million for BUS in 2026 to 2027, the largest annual allocation since the scheme launched.
What this means
For installers, the upfront discount rule is the operational shock: cash flow now leans on Ofgem redemption rather than the customer. For applicants, the EPC removal cuts a typical two-week delay and a survey cost from the start of any application. For the wider market, scheme certainty out to 2030 makes investment in installer training and supply chains easier to underwrite.
Grant Changes Effective Now
£9,000 Grant for Oil and LPG Homes (One Year Only)
Sources: Homebuilding, Installer Online ·
Energy Secretary Ed Miliband announced a one-year uplift to £9,000 for households not on the gas grid that switch from oil or LPG heating to a heat pump. The measure raises the headline grant by £1,500 from the standard £7,500 and applies in England and Wales. Mains gas boiler replacements continue to receive £7,500. Miliband framed the change as a response to fossil fuel price volatility: "As we face the second fossil fuel shock in less than five years, the lesson for our country is clear", he said, calling it a "doubling down" on clean power.
What this means
Off-grid homes typically face heat pump install costs approaching £20,000 and have no cheap fossil alternative. The uplift narrows the gap but does not close it. Industry bodies have already flagged that the one-year framing creates a rush window: installs that complete before the uplift expires get an extra £1,500.
Air-to-Air Heat Pumps Eligible at £2,500
Sources: legislation.gov.uk, EPC Guide ·
Air-to-air heat pumps blow warm or cool air directly into rooms and do not need a wet central heating system. Until 28 April they were excluded from BUS, leaving electric-storage homes and many flats without a heat pump grant route. Schedule 1A of the amended regulations now includes them at £2,500, residential properties only. Approximately 1.7 million households in England and Wales have no central heating; many of these are now in scope for the first time.
What this means
The £2,500 reflects the lower install cost (no hot-water cylinder, no radiator circuit), not lower policy ambition. Air-to-air units offer cooling as well as heating, which ties into the wider Part O overheating debate and rising summer cooling demand in HEM modelling.
No EPC Required: A Quiet Big Change
Sources: legislation.gov.uk, Logic4training ·
Until now, BUS applicants needed a current EPC with no loft or cavity insulation recommendations outstanding. From 28 April, a valid EPC is no longer a precondition. Where one exists it is still used; where not, the installer submits a recent utility bill plus photographs of the existing heating system. The original rule was meant to prevent grants going to leaky homes, but in practice it sent applicants on detours through EPC bookings and remedial insulation work before the heat pump install could even start.
What this means
Expect application volumes to rise — the EPC step was a meaningful drop-off point. Note the wider context: when reformed EPCs eventually go live in H2 2027, they will use HEM modelling, four headline metrics, and modular inputs. By the time BUS applicants need EPCs again for related schemes, the certificate itself will look very different.
Upfront Discount Becomes the Law
Source: legislation.gov.uk reg 14(2)(ca), reg 17(1)(d) ·
The customer experience of a grant has been a sore point for years. Historically the customer paid the full price up front, the installer claimed the voucher from Ofgem, and the customer waited weeks for a refund. Under the new regulations the installer must deduct the grant from the quoted price at the start. The customer pays only the net figure. The installer cannot ask for the deducted amount unless the application is refused or the voucher revoked.
What this means
A clearer customer journey, but installer cash flow becomes tighter — they finance the gap between install and Ofgem payout. Smaller MCS firms without working capital headroom may need bridging finance. Customer-facing pricing should now show the headline figure first and the BUS deduction immediately below it.
Industry Reaction: Welcome, but Underspend Tells a Story
Sources: Installer Online, End Fuel Poverty Coalition ·
The Heat Pump Association welcomed the package. Charlotte Lee, HPA chief executive, said the £1,500 uplift for oil users would "make the transition to heat pumps more affordable, helping to shield families and small businesses from volatile fossil fuel costs in the years ahead."
Off-grid heating bodies were more measured. Paul Rose (OFTEC) and Ken Cronin (UKIFDA) noted that "the government's own estimates put the switching cost at nearly £20,000. Most oil heated households simply do not have the disposable income available." The End Fuel Poverty Coalition called the uplift "very welcome, but it may not totally bridge the gap for those who cannot afford the remaining costs."
The most pointed comment came from manufacturer Worcester Bosch. Martyn Bridges noted "an estimated underspend of around £65m, which signals that growth in retrofit heat pumps is starting to flatline and further action is required." The implication: the package is a course correction, not a victory lap. Even with record 2025 heat pump sales, 2030 targets remain a stretch.
What this means
The £400m budget for 2026 to 2027 is the most BUS has ever had. If it underspends again, expect harder questions about whether grant size is the binding constraint — or whether cost of capital, installer capacity, and customer awareness are the real bottlenecks. The Worcester Bosch flatlining signal is the early warning to watch.
BUS Grants from 28 April 2026
| Technology | Grant | Conditions |
|---|---|---|
| Air-to-water heat pump | £7,500 | England and Wales |
| Ground source heat pump | £7,500 | England and Wales |
| Water source heat pump | £7,500 | England and Wales |
| Air-to-air heat pump | £2,500 | Residential only — new from 28 April 2026 |
| Biomass boiler | £5,000 | Off-gas-grid rural properties |
| Heat pump uplift (oil/LPG) | +£1,500 | Off-gas-grid only — one-year uplift announced 21 April 2026 |
The official Notice of Approved Grant Categories on GOV.UK was last updated for the 2024 changes; an updated 2026 notice consolidating the new amounts is expected to follow the regulations. Until then, the figures above are drawn from ministerial announcements and trade press confirmations.
Plug-in Solar Pilot and Planning Relaxations
Alongside the BUS announcement on 21 April, government published two further measures aimed at low-income and rented households:
- £25 million plug-in solar pilot fund. Delivered street-by-street in partnership with local authorities, targeting low-income households previously unable to access rooftop solar. This is funding to follow the legal framework already announced on 16 March 2026 (covered in our March plug-in solar roundup).
- Planning relaxations for flats and rented homes. Easier permitted-development rules for solar panels, heat pumps, and EV chargers in flats, rented properties, and homes without driveways. This is distinct from the March 2026 changes removing the one-metre boundary rule for air source heat pumps and addresses a different gap: the rental and high-density urban end of the market.
What This Means For You
If you are a homeowner
The path to a heat pump grant just got shorter. No EPC needed up front, the discount lands on your quote rather than your bank account weeks later, and if you are off-grid on oil or LPG you have an extra £1,500 for one year. Air-to-air units now offer a grant route for flats and homes without wet central heating. See our homeowner guide to the changing system.
If you are a landlord
BUS now runs to 2030, aligning with the EPC C deadline for the private rental sector. The EPC removal does not change MEES obligations on the rental side — you will still need EPCs for tenancy purposes — but it removes a friction point if you want to install a heat pump in advance of an upcoming reassessment.
If you are an MCS installer
The upfront-discount rule is the operational change to plan for. Cash flow now leans on Ofgem redemption rather than the customer. Quoting templates need updating to show the BUS deduction immediately under the gross figure. The MCS-only definition locks in the practical industry standard, but small firms considering applying for MCS for the first time should factor in working capital headroom.
If you are an EPC assessor
One small loss: BUS is no longer a steady source of EPC bookings. Bigger picture: the package signals continued government commitment to scaling heat pumps, which feeds directly into the Future Homes Standard deployment story. Assessors preparing for HEM and reformed EPCs should treat retrofit heat pump volume as an indicator of how quickly the modular EPC inputs will need to handle them in the field.
What to Watch Next
- Updated GOV.UK grant values notice. The Secretary of State will need to publish a consolidated 2026 notice formalising air-to-air at £2,500 and the £9,000 oil/LPG uplift. Until then, headline figures rely on announcements rather than a single canonical document.
- April 2027: oil/LPG uplift expires. If the £9,000 is one-year only, expect lobbying for extension well before then — and a possible application surge in early 2027.
- Underspend monitoring. The £400m budget for 2026 to 2027 is the largest BUS allocation yet. Whether it lands will tell us whether grant size is the binding constraint on heat pump deployment.
- FBS commercial side. Approved Document L Volume 2 for non-domestic buildings was published on 24 March 2026, with the Future Buildings Standard in force from 24 March 2027. SBEM has not yet been updated, leaving non-domestic assessors unable to model the new requirements. We will cover this in depth when the methodology update lands.
Frequently Asked Questions
What changed in the Boiler Upgrade Scheme on 28 April 2026?
Five things changed at once on 28 April 2026 under SI 2026/390: air-to-air heat pumps become eligible for a £2,500 grant (residential only); the EPC requirement for applications has been removed; the grant must be deducted upfront from the installer's quote; installer is now legally defined as MCS-certified; and the scheme is extended to 2030.
Who qualifies for the £9,000 oil and LPG heat pump grant?
Homes in England and Wales not on the gas grid that are replacing an oil or LPG heating system with a heat pump. The uplift adds £1,500 to the standard £7,500 grant and was announced on 21 April 2026 as a one-year measure. Mains gas replacements continue to qualify for the standard £7,500 grant.
Do I still need an Energy Performance Certificate to apply for BUS?
No. From 28 April 2026, a valid EPC is no longer required. Where one exists it remains the primary evidence; where not, the installer submits alternative evidence such as a recent utility bill showing the existing fuel type plus photographs of the current heating system.
Why does air-to-air eligibility matter for flats?
Most flats and many older homes have no wet central heating system, so air-to-water heat pumps were practically unavailable to them. Air-to-air heat pumps blow warm or cool air directly into rooms and need no wet system. Adding them at £2,500 opens BUS to households on electric storage heaters and to flats for the first time.
How does the BUS overhaul connect to the Future Homes Standard?
BUS is the retrofit scheme; the Future Homes Standard sets the rules for new builds. They are separate but linked: both are part of the push to scale heat pump deployment from around 100,000 installations a year today to several hundred thousand by 2030.
Related Pages
Heat Pumps in HEM
How HEM models heat pump performance, COP curves, and supplementary heaters under EN 14825.
Future Homes Standard: Complete Guide
What the FHS requires, when it lands, and how it links to retrofit policy like BUS.
UK Heat Pump Sales 2025
Record year of UK heat pump installations and the gap to 2030 deployment targets.
EPC Reform Delayed to 2027
Why government moved reformed EPCs from October 2026 to the second half of 2027.
Plug-in Solar and Easier Heat Pumps (March 2026)
The earlier round of solar legalisation and heat pump planning changes that this BUS package builds on.