London, UK - Research and innovation foundation Nesta has responded to new government figures showing record numbers of heat pump applications, warning that a newly announced Budget cap on funding means households are effectively ‘on the clock’ to secure support.

Official data published yesterday by the Department for Energy Security and Net Zero (DESNZ) shows applications to the Boiler Upgrade Scheme (BUS) grant scheme surged to nearly 10,000 in September 2026. This is the highest monthly total on record and a 118% jump since June.

The surge has been driven by a combination of off-grid households tapping into the £9,000 uplift grant alongside narrowing running costs between electricity and gas.

The figures follow Wednesday’s Budget, which introduced measures to support clean heating, such as abolishing the gas standing charge, while capping ongoing BUS funding at £400 million a year, with future uplifts tied strictly to inflation.

Andrew Sissons, director in sustainable future at Nesta, said: "Freezing funding for heat pumps just as consumer demand hits its stride risks putting the brakes on Britain’s transition away from gas during a fossil fuel energy crisis. The Budget’s cap on the Boiler Upgrade Scheme means that anyone interested in switching is effectively now on the clock to apply while the funding pot is available.

“To break our dependence on volatile gas for good, ministers should be looking for ways to support the public momentum for low-carbon heating, rather than rein it in. While other Budget measures like removing the gas standing charge make getting a heat pump an even better deal, for a government that is serious about electrification the other half of the equation has to be supporting the heat pump industry’s continued growth."

Notes to editors

1. The Boiler Upgrade Scheme (BUS) grant is available for the next three financial years, with the government capping the funding for 2027/28 at £400 million per year, remaining at the same level as 2026/27 instead of increasing as planned prior to the Budget. The grant will in subsequent years rise in line with inflation.
2. For more information on the analysis or to speak to one of the experts involved, please contact Jake Kroeger, Group Media Manager, on 020 7438 2576 or [email protected]. Spokespeople are available for broadcast interviews.

About Nesta

Nesta is a research and innovation foundation that designs, tests and scales solutions for the biggest challenges of our time.

Driven by a vision to improve the lives of millions of people, our focus up to 2030 is on three missions: breaking the link between family background and life chances, halving obesity and cutting household carbon emissions.

We work with partners to develop high-potential solutions and test them as they evolve, drawing on expertise in qualitative and quantitative research, data science, behavioural science and design.

Once confident in the effectiveness of a solution, we take it to scale. We create national policy proposals, develop consumer-facing products and services, build and spin out commercial ventures and harness the power of the arts.

We work with two specialised units: BIT applies a deep understanding of human behaviour to help clients achieve their goals. Challenge Works designs and runs challenge prizes to spark innovation in science, technology and society. Find out more at nesta.org.uk