What’s New in the Boiler Upgrade Scheme: Key Updates from the Government.
Public demand for the Boiler Upgrade Scheme has been noticeably stronger since September 2025 which saw a record number of applications and the Government increase of the scheme’s budget (raising it to £295m for 2025/26) is likely to ensure that even more people benefit.
The Government’s latest announcement shows that there is a clear commitment to scaling up low-carbon heating and making it more accessible across the board.
What This Means for Homeowners Right Now:
Easier installations: With planning permission barriers reduced, more homeowners can realistically consider heat pumps — especially in urban areas where space is more confined.
Act while the grant is strong: The £7,500 BUS grant remains, and with the increased budget, there’s a better chance of securing it through certified installers.
Use certified installers: Make sure your installer is MCS-certified and aware of the new guidance — this ensures you remain eligible for the grant.
Check your EPC status: As before, your energy performance certificate (EPC) matters for eligibility, so double-check it before applying. Your MCS installer will be able to also assist with this.
Planning Rule Reform Fully in Effect
The long-awaited change to planning rules came into force on 29 May 2025, making it easier to install heat pumps: the 1-metre boundary rule has been removed. airahome.com+2hvnplus.co.uk+2
Other changes under the amended permitted development rights (PDR):
The maximum size for air-source heat pumps under PDR has increased (from 0.6 m³ to 1.5 m³) airahome.com+1
Detached homes can now install two units (instead of one) under PDR. airahome.com+1
Air-to-air (i.e., reversible) heat pumps are now explicitly allowed under PDR, which opens up options for units that both heat and cool. hvnplus.co.uk
Industry players have welcomed these reforms: companies like Vaillant say removing planning permission hurdles is “a meaningful step” to speed up the low-carbon heating transition. hvnplus.co.uk
Expanded Technology Options for Homeowners
As part of its Warm Homes Plan, the government has entered into a consultation to expand the heat pump scheme to extend BUS eligibility to include other low-carbon heating technologies — notably air-to-air heat pumps and heat batteries. GOV.UK
Timings for this are not yet available, but if approved, this will give homeowners greater flexibility in how you replace existing boilers, potentially lowering costs or making the switch more suitable for different property types.
What next?
The Boiler Upgrade Scheme is not just alive and well — it’s accelerating. The Government’s move to relax planning rules and boost funding show a clear push to scale up heat pump adoption. This means lower barriers, more flexibility, and potentially a smoother path to upgrading to low-carbon heating.
If you were previously on the fence — maybe because of planning hassles or limited grant availability — now is an especially good time to revisit the idea. Speak to MCS-certified installers, run through your options (including newer tech), and see whether BUS can work for your home.
Heat Horizons are experts in the field of renewable energy sources and tailor make solutions to suit you and your home. Contact us today to see how we can help you make the most of the Government’s scheme.