21 December 2023
2 minute read
UK Boiler Upgrade Scheme gets £1.5bn funding boost to help take more homes off gas

The UK’s Boiler Upgrade Scheme (BUS) – which provides homeowners with grants to switch from fossil fuel heating systems to clean energy heat pumps – will receive an extra £1.5bn in funding to support the electrification of residential heating in the UK.
In October, the heat pump grant was increased by 50% to £7,500, which has already resulted in a 57% increase in the number of BUS applications. Now, the government has pledged additional funding for between 2025-2028 as part of the push to get the UK’s homes off gas.
The government said the boost has been brought in so that more homes can install heat pumps, helping people transition easily to the modern, clean heating systems needed to become a net zero nation. Its aim is for 600,000 heat pumps to be installed in homes and businesses each year by 2028.
The funding announcement, which is part of a wider £6 billion package to include businesses and the public sector, is a welcome step for us here at Aira. We’re on a mission to help one million UK customers switch from gas boilers to a clean energy-tech solution over the next decade.
In the UK we still rely on 25 million fossil fuel boilers to heat our homes, which accounts for 16% of our CO2 emissions1. By switching to an air source heat pump, households can reduce heating costs by 25% and household carbon emissions 75% – a number that rises to 100% with fossil free energy sources.
How to access the Boiler Upgrade Scheme
At Aira, we manage the grant application for you and there is 0% VAT to pay on any clean energy improvements made to your home until 31st March 2027, which effectively saves you 20%.
To access the Boiler Upgrade Scheme, Aira will check your eligibility via the government website and include the discount in your quotation. As we’re Microgeneration Certification Scheme (MCS) certified installers, we’ll claim the grant on your behalf.
We handle the application for you and keep you updated along the way - so you don't need to worry.
Extra grants and schemes are available for solar and insulation too. Talk to your Aira Clean Energy Expert to find out more about the latest incentives and how they work.
Call us on:0330 822 5493
* Source: IPCC
What type of house do you live in?
Keep learning
Similar articles to expand your knowledge

Published at 19 Jun 2025
Carl RobinsonHeat pump efficiency explained: Everything you need to know before you switch
You’ve probably heard that heat pumps are more energy efficient than boilers. And better for the planet. But what does that really mean day-to-day? And how do you know if those efficiency stats like COP and SCOP will actually translate into lower bills and reliable heating in your home? We break it down.

Published at 19 Jun 2025
Carl RobinsonThe top 5 heat pump myths. Busted.
Think heat pumps are too expensive, too noisy or only work in brand-new homes? You're not alone. But a lot of what you hear simply isn't true. And it's time to set the record straight. We debunk the top 5 heat pump myths.

Published at 28 May 2025
Carl RobinsonPlanning permission just got easier for heat pumps. What does it mean for you?
For some households, outdated planning permission rules have made it hard to switch. But, for thousands of households looking to switch to a heat pump in 2025, those long, unnecessary waits for planning approvals are set to be a thing of the past with changes to the boundary rule as part of the Warm Homes Plan agenda.

Published at 5 May 2025
Regina OnoratoHeat pumps vs. gas boilers: Which is the right choice for you?
How do heat pumps and boilers compare? Let's break it down – upfront costs, efficiency, performance, and long-term savings – so you can make the best choice for your home.

Published at 29 Apr 2025
Carl RobinsonWhat actually happens during an Aira Heat Pump install?
Choosing to ditch your old boiler for an Aira Heat Pump is a big step. One that can lower both your carbon emissions and your energy bills. But what actually happens when you take the leap and say “yes” to Aira? Let’s walk through it.

Published at 22 Apr 2025
Carl RobinsonHeat pump cashback: which banks offer up to £2,000 and how to claim it.
If you're a homeowner looking to upgrade their heating by ditching their boiler for a heat pump, the good news is you might be eligible for more financial help beyond the government grant. Some of the UK’s biggest banks now offer cashback and green finance to help cover the cost of a heat pump installation.