The UK government is offering up to £9,000 toward the cost of a heat pump installation.
The Boiler Upgrade Scheme (BUS) has been running since 2022 and was expanded in April 2026 with higher grants for households on heating oil. Yet many people who qualify still don't know it exists — or assume applying is complicated.
This guide explains exactly how the Boiler Upgrade Scheme works, who is eligible, how much you can get depending on your fuel type, and how the application process actually works.
The Boiler Upgrade Scheme is a UK government programme that provides a financial grant to help homeowners replace fossil fuel heating systems with low-carbon alternatives — primarily air source heat pumps.
It's administered by Ofgem and funded by the Department for Energy Security and Net Zero (DESNZ). Eligible homeowners in England and Wales can receive a grant of £7,500 or £9,000 (depending on their current fuel type) applied directly to the cost of installation. You never handle the money yourself — your installer deducts it upfront.
The scheme is currently scheduled to run until 31 December 2027.
Domestic heating accounts for roughly 14% of the UK's total carbon emissions. With the government committed to net zero by 2050, shifting households away from gas and oil boilers is a priority.
Heat pumps are the main replacement technology — they use electricity to move heat from the air or ground into your home, producing three to four units of heat for every unit of electricity used. The BUS grant is designed to make the upfront cost of switching financially realistic for ordinary homeowners.
Yes, the Boiler Upgrade Scheme is active and open for applications.
In April 2026, the government expanded the BUS by increasing the grant for oil and LPG households to £9,000.
The amount you can receive depends on what fuel currently heats your home. This tiered structure was introduced in April 2026 and is not yet reflected in many older articles.
|
Current Heating Fuel |
BUS Grant Amount |
Change |
|---|---|---|
|
Gas boiler |
£7,500 |
Original scheme |
|
Electric storage heaters |
£7,500 |
Original scheme |
|
Oil boiler |
£9,000 |
Increased April 2026 |
|
LPG (liquified petroleum gas) |
£9,000 |
Increased April 2026 |
The grant is applied upfront at the point of installation. It's a government subsidy, not a loan — you don't repay it.
If your home is currently heated by a gas boiler or electric storage heaters, you can receive £7,500 toward the cost of installing an air source heat pump.
The grant covers the heat pump unit itself and core installation labour. It does not cover additional works that may be recommended — such as radiator upgrades, a new hot water cylinder, or insulation improvements. These are common add-ons and vary in cost depending on your home.
In April 2026, the government increased the BUS grant to £9,000 for the approximately 865,000 homes in England and Wales that run on heating oil or LPG. These properties are predominantly in rural areas without access to the mains gas network, and they're most exposed to oil price volatility.
Analysis by Nesta (April 2026) found that oil households switching to a heat pump under the new grant could save over £650 per year on energy bills at current prices. When you factor in the higher grant, the upfront costs are also lower than many people expect:
To put that in context: replacing an oil boiler typically costs between £3,500 and £5,500 for a full installation. For some oil households, switching to a heat pump now costs the same as or less than staying on oil — and saves money every year going forward.
Not quite, but it makes a significant dent. A full heat pump installation typically costs between £12,000 and £16,000 before any grants or discounts.
After the BUS grant:
Additional works (insulation, radiator upgrades, hot water cylinder) may add to the final cost. See a detailed breakdown of heat pump costs, including what affects the total price and how group-buying can reduce it further.
Illustrative example based on the average cost of standard installations
The Boiler Upgrade Scheme has clear eligibility criteria. Meeting all of them is a requirement — failing one is enough to be rejected.
This is where most rejected applications fall. Your property must have a valid, in-date Energy Performance Certificate (EPC) — and that EPC must not contain recommendations to install loft insulation or cavity wall insulation.
If your EPC says you should insulate your loft or walls, you need to do that before you can claim the BUS grant. This rule exists because a heat pump works most efficiently in a well-insulated home.
If your EPC doesn't flag any outstanding insulation work — or confirms it does not apply to your property type — you're in the clear.
Not sure what your EPC says? You can find your property's EPC on the government's EPC register. Your installer can also advise you during a survey.
The Boiler Upgrade Scheme does not apply across the whole of the UK. Here's a clear breakdown by nation.
The full BUS grant (£7,500 or £9,000) is available to homeowners in England. Applications are administered by Ofgem via certified installers. You can find official guidance at gov.uk/apply-boiler-upgrade-scheme.
Wales is also covered by the Boiler Upgrade Scheme — the same grant amounts and eligibility rules apply as in England. Additional support may be available through Welsh Government energy efficiency programmes alongside the BUS grant.
This is a common point of confusion: the Boiler Upgrade Scheme does not apply in Scotland. Scotland has its own equivalent programme.
The Home Energy Scotland Grant offers up to £7,500 toward a heat pump, plus an optional interest-free loan of up to £1,500 for homeowners who need extra support. It's administered by Home Energy Scotland, not Ofgem.
If you're in Scotland and searching for the Boiler Upgrade Scheme, this is the programme you're looking for.
There is currently no direct equivalent of the BUS in Northern Ireland. Some support may be available through the Northern Ireland Sustainable Energy Programme (NISEP) — contact nidirect.gov.uk for current information.
Not every low-carbon heating system qualifies. Here's what the scheme does and doesn't cover:
|
System |
Eligible? |
|---|---|
|
Air-to-water heat pump (ASHP) |
Yes |
|
Ground source heat pump (GSHP) |
Yes |
|
Water source heat pump |
Yes |
|
Air-to-air heat pump |
No |
|
Biomass boiler |
No (removed from most BUS eligibility) |
|
Solar thermal |
No |
|
Hybrid heat pump systems |
No |
The most important point for anyone researching this: air-to-air heat pumps are not eligible. These systems heat air directly and are popular for cooling, but they don't provide central heating or hot water in the same way. The BUS covers air-to-water heat pumps, which connect to your existing radiators and hot water cylinder.
If you're unsure which type of system you're being quoted for, ask your installer to confirm it's an air-to-water or ground source system.
Here's the most important thing to understand about the BUS application process: you don't apply yourself.
The grant is applied for by your installer on your behalf. You don't need to register with Ofgem, submit forms, or navigate the government portal. Your role is to choose a qualified installer and confirm you're happy to proceed.
Run through the checklist above: property location (England or Wales), ownership status, current heating fuel, and EPC status. If you're unsure about your EPC, look it up before booking a survey — it can save time.
Switch Together can advise on eligibility with a free registration.
Your installer will visit your home to assess its suitability for a heat pump. They'll look at your insulation, radiator sizes, hot water cylinder space, and where the outdoor unit can be placed. They'll then design a system and provide a quote that already factors in the BUS grant.
Important: To qualify for the BUS, your installation must be carried out by an MCS-certified installer. This is a legal requirement of the scheme — not optional. All installers working through Switch Together are MCS-accredited.
Once you've agreed to proceed, your installer applies to Ofgem on your behalf. You don't need to interact with the application process directly. The installer submits the required documentation — system specifications, your property details, and EPC — and Ofgem approves the grant before installation begins.
When your heat pump is installed, the £7,500 or £9,000 grant is deducted directly from your invoice. You pay your installer the net cost — you never see the grant money or handle it yourself.
Private landlords in England and Wales are eligible for the Boiler Upgrade Scheme — a fact that surprises many people. The same eligibility criteria apply: the property must be in England or Wales, have a valid EPC with no outstanding insulation recommendations, and currently use fossil fuel heating.
The landlord (not the tenant) must be the named applicant. The grant is tied to the property, so a landlord with multiple qualifying properties could apply for each one separately.
It's also worth noting that EPC minimum standards for rental properties are tightening. Installing a heat pump now means getting ahead of incoming regulations, while accessing a grant that may not always be available.
Switch Together works with MCS-accredited installers across England and Wales. When you go through Switch Together, your installer handles the Boiler Upgrade Scheme application from start to finish — you don't fill in any forms or contact Ofgem directly.
Your grant — £7,500 if you're on gas or electric, or £9,000 if you're on heating oil or LPG — is deducted from your installation cost upfront. No claiming back, no waiting for a cheque.
On top of the government grant, Switch Together's group-buying model means you may access lower installation costs than you'd get from an individual quote. The result is that switching to a heat pump is more affordable than most homeowners expect.
See how the heat pump grant works →
No. The Boiler Upgrade Scheme is available to all eligible homeowners regardless of income. There is no income threshold or financial assessment involved.
The scheme is currently scheduled to run until 31 December 2027. No end date changes were announced in the November 2025 Budget, and in April 2026, the government expanded the scheme with higher grants for oil households — suggesting active political commitment to it. However, government schemes can change, so it's worth acting while the grant is confirmed.
No. The BUS grant is a government subsidy, not a loan. Once applied to your installation, it does not need to be repaid under any normal circumstances.
You cannot stack the BUS grant with other government heating grants for the same installation. However, you can use it alongside group-buying savings — like those offered through Switch Together — which are separate to any government scheme.
Your installer submits the application, so you don't need to do anything beyond confirming your details. Ofgem typically processes applications within a few days. From initial survey to a completed installation, most homeowners wait 4–8 weeks.
If your EPC recommends loft or cavity wall insulation, you'll need to address those before applying. Your installer can advise on what's needed and whether your property type is exempt from specific recommendations. Once the insulation work is done, you can get an updated EPC and proceed with the BUS application.
Oil and LPG households can now receive £9,000 through the Boiler Upgrade Scheme, following a government increase announced in April 2026. This is £1,500 more than the standard grant. According to Nesta's April 2026 analysis, this means the upfront cost after the grant is approximately £2,500–£3,600, depending on your property type, comparable to the cost of replacing an oil boiler.