Boiler Upgrade Scheme 2026: Who Qualifies and How to Claim

In 30 seconds

The Boiler Upgrade Scheme takes £7,500 off an air-to-water or ground source heat pump in England and Wales.
Homes that heat with oil or LPG and are off the gas grid get £9,000 instead, for a limited time: 21 July 2026 to 31 March 2027.
An air-to-air heat pump (the kind that can also cool) gets £2,500.
You don’t apply yourself. An MCS-certified installer applies for you and takes the grant off your bill.
You must own the property and be replacing fossil fuel or direct electric heating.

If you are thinking about a heat pump, the Boiler Upgrade Scheme (BUS) is the single biggest number in your sums. It is a government grant, run by Ofgem, that pays part of the installation cost straight to your installer. Below is what it pays today, who qualifies, how the money reaches you, and the mistakes that cost people the grant.

On this page

How much the grant pays in 2026
Who is eligible
How to apply, step by step
The £9,000 grant for oil and LPG homes
Five ways people lose money
How popular is the scheme?
Frequently asked questions
Sources

How much the grant pays in 2026

The amounts depend on the type of system and, since July 2026, on the fuel you are replacing. These are the values the government set from 21 July 2026, taken from the official notice of grant values:

Source: Department for Energy Security and Net Zero, grant values effective 21 July 2026. Ofgem says the £9,000 rate is available until 31 March 2027.
What you install	Typical home	Off-gas-grid home replacing oil or LPG
Air-to-water heat pump (the usual “air source” type)	£7,500	£9,000
Ground source heat pump	£7,500	£9,000
Air-to-air heat pump	£2,500	£2,500
Biomass boiler (rural, off-gas-grid homes only)	Not eligible	£5,000

Two details people miss. First, the £9,000 rate is only for an off-gas-grid property replacing oil or LPG. An off-grid home replacing coal or direct electric heating still gets £7,500. Second, Ofgem’s scheme page also lists £7,500 for water source heat pumps.

What it means for the price you pay

The median air source heat pump installation under the scheme cost about £13,041 in 2025/26, according to Nesta’s analysis of scheme data. That figure includes the unit, the installer’s fees and related upgrades such as radiators. Take off the £7,500 grant and the typical bill comes to roughly £5,500. Your quote can be well above or below that: we break down what drives the price in our heat pump cost guide.

Who is eligible

According to GOV.UK, you qualify if both of these are true:

You own the property. That includes your home, a second home, a property you let to tenants and small business premises.
You are replacing a fossil fuel or electric heating system, such as gas, oil, LPG or electric storage heaters.

The property must be in England or Wales. Scotland and Northern Ireland have their own schemes, which work differently.

Having already had help to insulate your home does not stop you claiming. Your installer must install and commission the heat pump within 120 days of applying for the grant.

Properties that can’t get the grant

most new builds that are still being built by a developer (a finished new build you moved into with a fossil fuel boiler may qualify);
social housing;
a property that has already had government funding for a heat pump or biomass boiler.

Self-build homes can qualify if you or the original owner built them and they have never been owned by a business. You may need to show your installer proof, such as the title deeds.

Hybrid systems that combine a gas boiler with a heat pump are not covered by the grant, as pv magazine notes in its summary of the scheme rules. Neither is replacing a system that is already low carbon.

What about the EPC and insulation rule? Many council and older web pages still say you need an Energy Performance Certificate with no outstanding recommendations for loft or cavity wall insulation. The current GOV.UK eligibility page, which we checked on 7 October 2026, does not list that condition. If an installer tells you otherwise, ask them which rule they are referring to.

How to apply, step by step

The scheme is “installer-led”. You never fill in an application form yourself. GOV.UK sets out the steps like this:

Get quotes from MCS-certified installers. MCS is the certification the scheme requires. You can search the MCS installer directory.
Confirm you are eligible. Your installer will check this with you.
Agree a quote. The installer applies to Ofgem on your behalf. The grant is taken off what you pay and must appear on both the quote and the invoice.

After that, Ofgem will contact you to confirm the installer is acting for you. Ofgem may also phone you or visit to check the installation, and MCS may carry out its own checks. Reply to the Ofgem email promptly: it is part of the process, not spam.

The £9,000 grant for oil and LPG homes

From 21 July 2026 the government raised the grant by 20%, from £7,500 to £9,000, for off-gas-grid homes that heat with oil or LPG. Ofgem says the higher rate is available until 31 March 2027.

These homes usually gain the most from a heat pump, because heating oil and LPG have been expensive and an oil boiler is often old. If this is you, the timing matters: with the 120-day installation window, surveys and design work, it makes sense to get quotes well before the end of the year rather than in March.

Five ways people lose money

Using an installer who is not MCS-certified. No MCS, no grant. Check the certificate number in the MCS directory, not just a logo on a van.
Comparing quotes before the grant on one and after it on another. Ask every installer for the full price, the grant, and what you pay.
Skipping the heat loss survey. A proper design starts with a room-by-room heat loss calculation. A quote without one is a guess, and an oversized or undersized pump costs you every winter.
Choosing a hybrid by accident. A gas boiler plus heat pump setup is not eligible for the grant.
Leaving it too late. The £9,000 rate ends on 31 March 2027, and so does 0% VAT on installation. Read what changes after March 2027.

Will a heat pump actually be cheaper to run than your boiler? Put in your own gas usage and tariff.

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How popular is the scheme?

Since it opened in April 2022, the scheme has supported almost 80,000 heat pumps in England and Wales, 98% of them air source. It supported 30,600 in 2025/26, up 24% on the year before (Nesta). Nesta also reports that the scheme’s annual budget is due to rise to £625 million in 2026/27. The scheme is part of the government’s Warm Homes Plan, and the government has extended it to March 2030, according to the MCS Foundation.

Frequently asked questions

Can I apply for the Boiler Upgrade Scheme myself?

No. Only an MCS-certified installer can apply, on your behalf. Ofgem then contacts you to confirm the installer is acting for you.

Do I get the £7,500 as cash?

No. The installer takes the grant off your price and Ofgem pays the installer after the job is done. Your quote and invoice should both show it.

Can landlords claim the grant?

Yes. GOV.UK says you can apply for a property you rent out to tenants, as long as you own it. Social housing is not eligible.

Is the Boiler Upgrade Scheme available in Scotland?

No. It covers England and Wales only. Scotland has separate support through Home Energy Scotland, and Northern Ireland has its own arrangements.

Can I get the grant if I keep my gas boiler as a backup?

The scheme is for replacing a fossil fuel system, and hybrid gas-and-heat-pump systems are not eligible. Ask your installer how they handle any existing boiler before you sign.

How long does the installer have to fit the heat pump?

GOV.UK says the heat pump must be installed and commissioned within 120 days of the grant application, or it will not be eligible.