Boiler Upgrade Scheme 2026: the £7,500–£9,000 Heat Pump Grant Explained

The Boiler Upgrade Scheme (BUS) is an upfront government grant towards low-carbon heating in existing homes and small non-domestic buildings in England and Wales. The Department for Energy Security and Net Zero (DESNZ) sets the rules and Ofgem runs it. The grant is paid to your installer and shown as a discount on your quote, so you never receive the money yourself.

It's aimed at homes replacing a gas, oil or LPG boiler, or electric heating. Most homeowners use it for an air source heat pump. Ofgem's property owner guidance v5.1 (July 2026) covers applications made since the rule changes of 28 April 2026. If you're comparing it with other funding, start with what the Warm Homes Plan is, because the BUS is now funded as part of it.

The Boiler Upgrade Scheme grant depends on the technology and, from 21 July 2026, on whether your home is on the gas grid. Your installer tells you which rate applies and must show it on the quote.

Who gets the £9,000 Boiler Upgrade Scheme grant?

The £9,000 rate is for homes that are off the gas grid and replacing heating fuelled by oil or LPG with an air source or ground source heat pump. Ofgem defines off-gas grid as having no mains gas supply or record of a gas meter point (a capped or clamped meter still counts as on-grid), not being on a heat network, and not being a new build. It's temporary: it only applies to applications properly made between 21 July 2026 and 31 March 2027, and self-builds get £7,500.

That makes it mostly a rural grant. In Greater Manchester only 2,122 households (0.18%) heated with oil alone in Census 2021, against 3.2% across England. If you're in the Pennine villages above Oldham or Rochdale, or rural Lancashire, check this first. Our oil boiler grant guide covers the £9,000 rate in detail.

What is the £2,500 air-to-air heat pump grant?

Air-to-air heat pumps blow warm air into rooms, like a reversible air conditioner. They don't heat radiators or hot water. They were added to the BUS at £2,500 as part of the Warm Homes Plan, and are only eligible in residential properties. You still need a separate way to heat your hot water, so they suit well-insulated flats and smaller homes more than a typical family semi. It can't be claimed yet: see our air-to-air heat pump grant guide.

Most owner-occupiers and private landlords in England and Wales qualify for the Boiler Upgrade Scheme. There's no income test and no insulation requirement. Use this checklist before you ask for quotes, or try our heat pump grant eligibility checker.

• You own the property (owner-occupier, private landlord, business or charity). Joint owners need only one owner to consent.
• The property is in England or Wales and is an existing building, not a new build (some self-builds qualify).
• You are replacing a fossil fuel system (gas, oil or LPG) or electric heating. Existing heat pumps don't count.
• The fossil fuel boiler will be fully removed. You can't keep a gas or oil boiler alongside a BUS heat pump.
• No public funding has already paid for low-carbon heating at the address.
• You'll own the heat pump outright once it's installed. Finance deals where a third party keeps ownership are not eligible.
• You have a valid EPC, or your installer can provide other evidence such as a utility bill dated within 3 months.
• Your installer is MCS-certified and a member of a consumer code (HIES, RECC or MCS).

Ofgem can't pre-approve your home. Your installer checks eligibility before submitting. Older and solid-wall homes are usually eligible too: see our guide to Boiler Upgrade Scheme eligibility for older properties. Landlords should also read Warm Homes Plan funding for landlords.

You don't apply for the Boiler Upgrade Scheme yourself. It's installer-led: your MCS installer applies for a voucher, and you confirm consent with Ofgem. With Alliant, survey to switch-on usually takes 6–10 weeks.

1. 1

   Choose an MCS-certified installer

   Only an MCS-certified installer with a BUS installer account can apply. You cannot apply to Ofgem yourself.

2. 2

   Get a heat loss survey and itemised quote

   The installer surveys your home and gives a quote showing the full price, the BUS grant (£7,500, £9,000 or £2,500) and the balance you pay.

3. 3

   Your installer applies for a BUS voucher

   The installer submits the voucher application to Ofgem with your EPC reference, or alternative evidence such as a recent fuel bill and photos of your current heating.

4. 4

   Confirm consent with Ofgem within 14 days

   Ofgem emails you from boiler.upgrade.scheme.ofgem@notifications.service.gov.uk. You confirm consent and verify your identity within 14 days (28 days on the assisted phone/post route).

5. 5

   Installation within the voucher window

   The voucher is valid for 3 months for air-to-water and air-to-air heat pumps, and 6 months for ground source heat pumps. The system must be installed and commissioned in that time.

6. 6

   Installer redeems the voucher

   After commissioning, the installer redeems the voucher and Ofgem pays the grant to the installer. You receive your MCS certificate.

7. 7

   You pay only the balance

   The grant was deducted upfront, so you only ever pay the discounted price. The installer must not ask you to pay the grant amount.

Installers can also apply up to 120 days after commissioning, but Ofgem warns that retrospective applications carry extra risk because the grant isn't guaranteed. Ask for the voucher first. To check an installer, use the MCS Find an Installer tool with the BUS filter, and read what MCS certification means.

Half of homes pay roughly £3,600–£8,100 for an air source heat pump after the £7,500 Boiler Upgrade Scheme grant. DESNZ BUS statistics put the median installed cost at £12,908 in April–June 2026, with half of installs between £11,128 and £15,627. The median heat pump was 8 kW.

The price depends on heat loss, radiator upgrades, whether you need a hot water cylinder and how far pipework has to run. A smaller, well-insulated home can come in well under the median. If a quote is far above the upper quartile, compare it: our guide explains how to tell if a heat pump quote is inflated and why lead-gen sites cost more than a local installer.

Use the Boiler Upgrade Scheme if you don't qualify for a low-income grant. Use the Warm Homes: Local Grant first if your income is under £36,000 (or you meet another route) and your EPC is D–G, because it can fund the whole heat pump plus insulation. You can't use both on the same heat pump.

Sources: Ofgem, GMCA Warm Homes: Local Grant, Warm Homes Plan. For a heat-pump-only view of these routes, see Warm Homes Plan heat pumps; to check the low-income routes, see Warm Homes Plan eligibility and Warm Homes Plan vs ECO4. In Greater Manchester, the Warm Homes Plan Greater Manchester guide covers what's available locally. If you were hoping for a new gas boiler, see what boiler grants are still available.

1,767 heat pumps in Greater Manchester were paid a Boiler Upgrade Scheme grant between May 2022 and June 2026. That's 15 per 10,000 households, less than half the England rate of 35.2. Take-up is rising, from 534 grants in 2024/25 to 647 in 2025/26 (DESNZ BUS statistics, August 2026).

Trafford and Stockport lead because they have the most owner-occupied semis and detached homes. Tameside and Oldham trail despite housing that suits heat pumps. Our Greater Manchester heat pump hub has local costs, housing data and grant routes for each borough. For every local scheme, including the Warm Homes: Local Grant and heat pump loans, see our heat pump and boiler grants in Greater Manchester guide.

The Boiler Upgrade Scheme is funded to 2029/30. The Warm Homes Plan allocated about £2.7 billion to it, including a £2,392 million commitment for 2026/27 to 2029/30. The £9,000 off-gas grid rate ends sooner, for applications made after 31 March 2027.

The budget is set each financial year. In 2024/25 it was fully used and a further £39 million was added. Rules and rates also change: 2026 alone brought the EPC change (28 April), air-to-air grants and the £9,000 uplift (21 July). We update this guide when Ofgem publishes new guidance.

Answer seven quick questions about your home and we'll come back within one working day with a quote and a survey slot. We check which BUS rate you qualify for, and whether a Warm Homes: Local Grant would cover more.