Boiler Upgrade Scheme

The Boiler Upgrade Scheme

The main government grant for heat pumps in England and Wales — £7,500 standard, £9,000 for off-grid oil and LPG homes — taken straight off your installation invoice.

In this section: Boiler Upgrade Scheme   Eligibility   EPC rating   Who can apply   Landlords   New builds   Pensioners   Oil boiler replacement   Air source   Grant vs finance  

The Boiler Upgrade Scheme (BUS) is the UK government's flagship grant for replacing fossil-fuel heating with a heat pump in England and Wales. It's run by Ofgem and funded until at least March 2028.

How much is the grant?

  • £7,500 toward an air source or ground source heat pump — the standard amount for most homes.
  • £9,000 for off-gas-grid homes currently on oil or LPG, a temporary uplift running 21 July 2026 to 31 March 2027.
It's deducted before you pay. Your MCS-certified installer applies to Ofgem and takes the grant off your invoice. You never pay it upfront or claim it back — you simply pay the reduced balance, with 0% VAT on top.

Who qualifies in brief

You own the property (owner-occupiers and landlords), you're replacing a fossil-fuel or electric system, you have a valid EPC (within 10 years, no outstanding insulation recommendations), and you use an MCS-certified installer. Full detail on the eligibility page.

Explore the scheme

Common questions

Is the Boiler Upgrade Scheme still available in 2026?

Yes. The scheme is live and funded until at least March 2028, offering £7,500 toward a heat pump, with a temporary £9,000 amount for off-grid oil and LPG homes from 21 July 2026 to 31 March 2027.

Do I apply for the grant myself?

No. Your MCS-certified installer applies to Ofgem on your behalf and deducts the grant from your invoice. You don't fill in forms or wait for a payment.

Does the grant cover the whole cost?

Usually a large part, not all. After the £7,500 grant most homeowners pay a net amount from the low thousands up to around £12,000, depending on system size. Use the calculator for your figure.

Is there 0% VAT as well?

Yes — heat pump installations currently carry zero VAT, a saving already built into installer pricing on top of the grant.

See your grant and net cost in seconds

The calculator applies the right grant to your home and shows what you'd pay after it.

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