Boiler Upgrade Scheme: Call for more funding

The Government needs to take a co-ordinated approach when it comes to energy efficiency funding, with extra cash needed to install new low-carbon heating systems. The NRLA, responding to the government consultation on changes to its Boiler Upgrade Scheme (BUS), said the proposals could make the scheme more accessible and effective for landlords, but it needs to take a joined up approach. Mia Rotaru, NRLA Public Affairs Officer, summarises what was proposed and our response to the consultation. 

What is the Boiler Upgrade Scheme? 

The Boiler Upgrade Scheme (BUS) is a government grant scheme designed to support the switch from traditional fossil fuel heating such as gas, to cleaner, low-carbon alternatives in homes and small to medium-sized properties across England and Wales.

It offers financial support to property owners and landlords to install technologies like heat pumps and biomass boilers. The scheme is currently set to run until 2027. 

What was the consultation about? 

The Government put forward several key proposals to improve the way the scheme works. These include: 

• Expanding eligibility by allowing BUS-funded heat pumps to be installed alongside other low-carbon technologies. 
• Adding support for systems not currently included in the scheme, such as air-to-air heat pumps and heat batteries. 
• Enabling property owners to use third-party financing options to help cover upfront installation costs. 
• Strengthening standards through the Microgeneration Certification Scheme (MCS) and ensuring installers deduct the grant amount from the cost upfront (rather than reimbursing landlords later). 

What did we say? 

We welcomed many of the proposed changes, highlighting that opening the grant to technologies like air-to-air heat pumps (AAHPs) could be a cost-effective option, especially for properties where traditional low-carbon systems – such as solar panels and ground source heat pumps – may not be suitable.

Adding them to the scheme in this way would make it easier for landlords to meet decarbonisation goals. 

We also emphasized that additional measures are necessary to make the transition to net zero feasible for landlords. Our main points were: 

• The Government must align the BUS with other schemes, such as the Warm Homes Local Authority Grant and the Minimum Energy Efficiency Standards (MEES). It's crucial to confirm whether AAHPs will meet future MEES heating system requirements. Otherwise, landlords may hesitate to invest. 
• The Government must increase funding levels and guarantee support for at least five years, since it will enable landlords to plan upgrades during tenancy gaps without disrupting tenants. 
• The scheme’s success depends on expanding the workforce, not just for installation but also for follow-up work to ensure homes are quickly and safely returned to market. 
• Without a coordinated, long-term approach, landlords may struggle to make the changes needed to meet environmental targets. Better financial support, clear policies, and a skilled workforce are essential while keeping homes safe and affordable. 

What’s next? 

The consultation closed on 11th June. The Government is now reviewing feedback and is expected to issue a response. In the meantime, a separate consultation on the new Home Energy Model is also expected in due course. We’ll keep you updated as more details emerge.

More information: 

• You can find out how to access these schemes here.  
• For more information about energy efficiency, visit our page here.  
• If you’re interested in retrofitting your home, take a look at our partners here.