Reform needed as Boiler Upgrade Scheme under review in Autumn Budget
Only around 5% of the Government’s annual air source heat pump installation target is being met in England and Wales under the Boiler Upgrade Scheme (BUS), according to new data* analysed by Hewer Facilities Management.
The Government is targeting 600,000 heat pump installations annually by 2028. However, a review of publicly available MCS data by Hewer, a leading heating, plumbing and building services provider, shows that on average only 36,167 units have been installed per year in the three years since the BUS launched.
The BUS launched in 2022 and replaced the Domestic Renewable Heating Incentive (DRHI). The scheme provides grants of up to £7,500 to homeowners looking to upgrade their heating systems as an incentive to decarbonise their homes. The grants are only available through engineers certified through MCS, the UK’s quality mark for small-scale renewable energy technologies.
Despite the shortfall there is growing speculation that the eligibility criteria could be under review in the Autumn Budget on 26 November, with the grant support either coming to an end, or more likely scaled back, including being made available to only those receiving certain benefits and/or low-income households.
Total installations by region under the Boiler Upgrade Scheme
To date the BUS has been more successful in England and Wales than its predecessor. From April 2022 to April 2025 there were 108,502 air source heat pump installations, compared to 68,833 under the eight-year duration of the DRHI.
Installations in domestic homes have been growing year on year with 22,642 in 2022, up 250% to 54,409 in the year to April 2025. Since January this year there have been 44,587 installations by MCS certified engineers.
The South West and South East have seen the most, with over 16,000 installations each since the grant started in 2022. The East of England is third, while London has had more installed than the whole of the North East over that time. Wales in its entirety has had over 16,000, matching that of the south.
Table of installations per region between April 2022 and April 2025
| Region | Number of Installations |
|---|---|
| South East | 16,397 |
| South West | 16,303 |
| East of England | 13,869 |
| East Midlands | 10773 |
| Yorkshire and Humberside | 9,547 |
| North West | 9,420 |
| West Midlands | 8,182 |
| London | 3,917 |
| North East | 3,732 |
| Wales | 16,546 |
The best performing local authority area is East Lindsey in Lincolnshire with 1.96% of households now having an air source heat pump installed under the grant period, with the Forest of Dean, in Gloucestershire, coming in second with 1.88%. The rest of the top five are made up of South Norfolk, North Kesteven, and Cornwall.
Local Authority Performance (Top Areas)
| Local Authority | MCS Certified Installations Total | % of Households with Installations |
|---|---|---|
| East Lindsey | 1268 | 1.96% |
| Forest of Dean | 700 | 1.88% |
| South Norfolk | 1027 | 1.67% |
| North Kesteven | 797 | 1.56% |
| Cornwall | 3817 | 1.52% |
| South Holland | 577 | 1.42% |
| North Norfolk | 683 | 1.41% |
| Fenland | 572 | 1.30% |
| South Cambridgeshire | 864 | 1.29% |
| Torridge | 393 | 1.29% |
The worst performing areas are all based in and around the Capital. Only 0.04% of homes in Kensington and Chelsea have had an air source heat pump installed, with the London districts of Westminster, Tower Hamlets, Barking and Dagenham, and Harlow making up the bottom five.
Local Authority Performance (Lowest Areas)
| Local Authority | MCS Certified Installations Total | % of Households with Installations |
|---|---|---|
| Redbridge | 88 | 0.08% |
| Greenwich | 92 | 0.08% |
| Hammersmith and Fulham | 59 | 0.07% |
| Islington | 70 | 0.07% |
| Newham | 65 | 0.06% |
| Harlow | 21 | 0.06% |
| Barking and Dagenham | 39 | 0.05% |
| Tower Hamlets | 49 | 0.04% |
| Westminster | 36 | 0.04% |
| Kensington and Chelsea | 24 | 0.04% |
Stuart Hesk, director at Hewer said:
“The data highlights that the BUS grant is a better solution than its predecessor. This is most likely down to the way in which the scheme allows claimants to access the funding. The DRHI was paid in instalments whereas the BUS grant is paid in one lump sum, directly to installers.
“Although we are seeing year on year increase in installations, the figures suggest that there is still more to be done, especially if we as an industry want to support the roll out and the UK’s transition to greener energy technologies. In this instance changing the BUS eligibility criteria could be a backwards step, however there are other challenges that need to be addressed too. These include filling a shortfall in the workforce, educating consumers on best use practices, reviewing energy costs and tariffs, and reform to red tape, which is hampering the roll out, especially in vulnerable communities such as those living in social housing.”
While the BUS grant can only be accessed through MCS certified businesses and installers, there is currently no standardised qualifications for heat pump installers. This stands in sharp contrast to the rigorous training required of gas engineers and is “a likely cause of many of the horror stories regarding poor installations and high running costs” noted Stuart.
He also highlighted the need for greater collaboration between manufacturers to help reduce installation and repair costs, alongside action from government and energy companies to bring down electricity prices, pointing to Norway, Sweden and Finland as examples of countries where heat pump adoption is significantly higher, largely due to more affordable energy.
Stuart added:
“The UK is one of the leading global parties in the transition away from fossil fuels, and technologies such as air source heat pumps have huge potential. If industry and government can work together to raise installation standards, simplify support schemes and bring down electricity prices, we can unlock far greater public confidence and accelerate installations at scale.”
