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Budget 2026: what does it mean for heating installers?

Last week's Autumn Budget brought a mixed picture for the UK's transition to low-carbon heating. While some funding has been scaled back, government support for heat pumps remains firmly in place and a new finance scheme could make home energy upgrades accessible to more households. For heating installers, the direction of travel is clear and positive: more homes will need heating systems designed to operate efficiently at lower temperatures.

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2 Nov 2026

Heat pump support continues

The Government has confirmed £400 million for the Boiler Upgrade Scheme in 2027–28, with funding then expected to rise broadly in line with inflation.

This is lower than previously planned, but it maintains significant government support for households moving to heat pumps.

There is another important development. The new Warm Homes Loan Scheme offers government-backed low or zero-interest finance for technologies including heat pumps, solar panels and battery storage. Households can combine eligible finance with a Boiler Upgrade Scheme grant, potentially reducing one of the biggest barriers to low-carbon upgrades: upfront cost.

As anticipated, the wider Warm Homes Plan has not escaped reductions. The Budget identifies a £1 billion saving from capital grants, although the majority of funding supporting low-income households and social housing through councils and mayors is protected.

More investment in social and affordable housing

The Budget also provides an additional £1.5 billion for social and affordable housing in England, supporting around 10,000 additional homes and prioritising social rent, particularly council housing.

For the heating sector, this opens up another potential pipeline of new homes requiring efficient, lower-carbon heating systems.

What does this mean for installers?

We've always championed the message that heat pump deployment isn't simply about changing the heat source.

As more homes move towards heat pumps and lower flow temperatures, installers increasingly need to consider the performance of the whole heating system. This includes heat loss calculations, system balancing and ensuring heat emitters are correctly sized to deliver the required comfort at lower temperatures. (This is a topic we've covered in previous blogs, and there are plenty of resources available on our website to simplify the process.)

In many homes, this doesn't necessarily mean abandoning radiators. Correctly selected and sized radiators can work effectively with low-temperature and heat-pump systems.

For installers, this latest set of announcements creates an opportunity to have a broader conversation with customers. Whether an upgrade is supported by a grant, a new government-backed loan or private investment, getting the heat emitters right is fundamental to delivering the efficiency and comfort customers expect.

As always, we are here to help with your technical questions. Explore Myson’s heating solutions or contact the team for further guidance.