Boiler Upgrade Scheme faces funding cuts in Autumn Budget
12:01 AM, 16th October 2026, 14 hours ago
The government could cut funding for the Boiler Upgrade Scheme to help pay for defence spending in the upcoming Autumn Budget, according to media reports.
Part of former energy secretary Ed Miliband’s £15 billion Warm Homes Plan, the scheme could face a significant funding squeeze as ministers seek to redirect billions of pounds towards defence.
It provides grants of up to £9,000 to eligible homeowners and landlords replacing gas boilers with low-carbon alternatives, including heat pumps and biomass boilers.
Short-sighted to cut scheme
The Guardian reports that the new energy secretary, Miatta Fahnbulleh, has been tasked with finding more than £2 billion in savings to help fund defence investment under plans drawn up by the previous government.
Although the Boiler Upgrade scheme is not expected to be scrapped, hundreds of millions of pounds could be cut from its £2.7 billion budget.
An energy supplier has slammed the government for considering cutting the scheme.
Greg Jackson, founder and CEO of Octopus Energy, said: “Britain’s exposure to gas cost the Treasury £80bn in the last energy crisis. The Boiler Upgrade Scheme budget is just 0.5% of that, and is key to getting off gas.
“It’d be remarkably short-sighted to try to enhance our defence by cutting our path to security. It’d also put thousands of skilled jobs at risk, the very people making Britain safer and cleaner in every postcode.”
A Department of Energy Security and Net Zero (DESNZ) told The Telegraph: “Savings for the Defence Investment Plan are a small part of DESNZ’s overall budget, which saw a significant uplift at the Spending Review.
“We will set out how we will fund essential investment in our national security this autumn.”
More financial support for landlords
Henry Griffith, senior policy and campaigns officer at Propertymark, told Property118 that, with EPC C targets for all PRS homes set for 2030, landlords must be given more financial support.
He said: “With Minimum Energy Efficiency Standards still set to come in by 2030, landlords need the right financial support and a clear, realistic pathway to making these improvements. While Propertymark has been critical of an insufficient number of national funding schemes outside of the Boiler Upgrade Scheme, any reduction in funding for energy efficiency improvements risks making the transition to low-carbon heating more difficult for landlords who are already facing significant upfront costs.
“Not every property is suitable for the same improvements. Older homes, flats and properties requiring substantial insulation or other preparatory work can present additional technical and financial challenges. Our concern is that reducing support while expecting landlords to meet increasingly ambitious energy efficiency standards could make essential improvements unaffordable for some, potentially putting further pressure on the supply of privately rented homes. To prevent a substantial number of homes being taken out of the PRS, we need more funding, not less. “
He added: “Government funding should be expanded and made more flexible, rather than leaving landlords to shoulder the cost of the transition alone. This means providing accessible grants and affordable financing for heat pumps, insulation and other appropriate energy efficiency measures, alongside clear guidance and realistic timescales.
“Support should reflect the condition and characteristics of individual properties, with targeted assistance for those facing the greatest barriers to improvement.
“If the government wants to deliver warmer, more energy-efficient homes and reduce emissions, it must give landlords the confidence and practical means to invest. Long-term policy certainty and properly funded support are essential to improving homes for tenants while protecting the availability and affordability of rented housing.”
