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Heat pump grant applications hit a record in September as the Budget sets future funding

Boiler Upgrade Scheme applications reached a record 9,738 in September 2026. The Budget holds funding at £400m in 2027-28, while new loans have launched.

An outdoor unit mounted on the white wall of a building under a clear blue sky.

The Boiler Upgrade Scheme received 9,738 voucher applications in September 2026, the most in any month since it opened in 2022. That was 30% more than in August (7,486) and 138% more than in September 2025 (4,089), according to government statistics published on 29 October.

Later stages of the process also set monthly records in September: vouchers issued (6,298), redemption applications (3,972) and redemptions paid (3,332).

The £9,000 grant is a large part of the rise

From July 2026, installers could apply for a £9,000 grant for eligible off-gas-grid homes heated by oil or LPG, up from the standard £7,500. By the end of September there had been 8,107 applications for the higher grant, 32% of the 25,374 received from July to September.

The higher grant is due to run until 31 March 2027.

What the figures show

Up to the end of September 2026, in England and Wales:

  • 160,874 voucher applications had been received, 98% of them for air-to-water heat pumps
  • 96,611 installations had been paid for, of which 55% replaced gas systems and 18% replaced oil
  • the South East had the most paid installations (19,069), and the North East the fewest (3,033)
  • Wales accounted for 5,148, or 5% of the total

The median cost of an air source heat pump in July to September 2026 was £12,826, including the grant. After inflation, that is 14% lower than in the same quarter of 2022. The statistics note that the mix of heat pump sizes can affect this trend. For ground source systems the median was £34,630.

What the Budget said

The Budget on 28 October said the government “will maintain the Boiler Upgrade Scheme at current funding levels of £400 million in 2027-28”, rising broadly in line with inflation after that. It also said £1 billion of capital grant would be saved from the Warm Homes Plan, while most funding for low-income households and social housing is protected.

So the grant continues, but with a set annual budget at a time of record demand. Ofgem’s figures show about £143.6 million of this year’s budget was left at 30 September, including applications still being decided. The government has not said what would happen if demand outruns the budget.

New loans can sit alongside the grant

The government has also launched the Warm Homes Loan Scheme, which backs no- and low-interest loans from private lenders for homeowners across the UK. Loans can cover heat pumps, solar panels, batteries, heat network connections and small wind or hydro systems. The factsheet gives a maximum of £20,000 for an air-to-water heat pump, £35,000 for a ground source heat pump, and £15,000 each for solar panels and batteries.

You apply to a participating lender, not to the government, and must pass its credit checks. The loan and a grant can be combined, but government money cannot pay twice for the same improvement, so check with the lender and installer how the two fit together.

The next Boiler Upgrade Scheme statistics are due on 26 November 2026.

Sources

Every figure in this article was checked against these primary sources (last checked 2 Nov 2026). Read our methodology.

  1. DESNZ: Boiler Upgrade Scheme statistics, September 2026
  2. HM Treasury: Budget 2026
  3. GOV.UK: Warm Homes Loan Scheme
  4. DESNZ: Warm Homes Loan Scheme factsheet