The government has allowed Ofgem to issue more Boiler Upgrade Scheme vouchers than the scheme’s budget for this year. In a notice published on 5 November 2026, the Department for Energy Security and Net Zero said Ofgem may now allocate vouchers worth up to £520 million in the 2026/27 financial year, to give certainty that vouchers will continue to be available.
The scheme’s budget for 2026/27 is £400 million, according to the official statistics. Our own calculation is that the new ceiling adds up to £120 million, or 30%.
Why it was needed
Vouchers are issued first come, first served until the year’s budget cap is reached, and demand has been at record levels. September 2026 saw 9,738 voucher applications, the most in any month since the scheme opened in 2022, helped by the higher £9,000 grant for homes heated by oil or LPG. We covered those figures in detail in our report on the record month, where we noted the government had not said what would happen if demand outran the budget. This notice answers that for the current financial year.
What it means for households
If you are planning a heat pump before 31 March 2027, there is more grant money available this year than the original budget allowed. There is still a limit, though, and the notice is short: it does not say whether the extra money will come out of later years’ budgets.
The grant is claimed by an installer certified under the Microgeneration Certification Scheme (MCS), who applies on the homeowner’s behalf. The next scheme statistics are due on 26 November 2026 and should show whether demand stayed this high in October.