Is there a grant to replace an oil boiler? Yes. Off-gas homes in England and Wales replacing an oil or LPG boiler get £9,000 off an air source or ground source heat pump through the Boiler Upgrade Scheme, on applications made between 21 July 2026 and 31 March 2027. There's no grant for a new oil boiler.
Key takeaways
- The oil boiler grant is £9,000 off a heat pump, £1,500 more than the standard £7,500 (Ofgem BUS guidance v5.1).
- It applies to off-gas homes replacing oil or LPG, on applications made from 21 July 2026 to 31 March 2027.
- The government sent leaflets to 200,000 eligible oil-heated homes in England and Wales (GOV.UK, 26 June 2026).
- The median BUS air source heat pump cost £12,908 in April–June 2026, or about £3,908 after £9,000 (DESNZ).
- A capped gas meter, a new build or a self-build means you get £7,500, not £9,000.
- No scheme pays for a new oil boiler. The Warm Homes Loan Scheme can cover the rest of a heat pump.
What is the £9,000 oil boiler grant?
The £9,000 oil boiler grant is a higher rate of the Boiler Upgrade Scheme for homes that are off the gas grid and heated by oil or LPG. It adds £1,500 to the usual £7,500 when you replace the boiler with an air source or ground source heat pump. Your installer deducts it from your quote.
"This government is determined to bring down energy bills, but I know the war in the Middle East has hit households on heating oil especially hard."Martin McCluskey MP, Minister for Energy Consumers, announcing the £9,000 rate (GOV.UK)
The announcement on 26 June 2026 talks about heating oil; Ofgem's guidance confirms LPG homes qualify too. Across England, 3.2% of households were heated by oil alone in the 2021 Census (ONS), mostly in rural areas.
Who qualifies for the £9,000 oil boiler grant?
You qualify for the £9,000 rate if you meet the normal Boiler Upgrade Scheme rules and your home is off the gas grid and currently heated by oil or LPG (Ofgem, paragraphs 3.11–3.13 and 4.27–4.29).
- The home is in England or Wales and you own it (owner-occupier or private landlord)
- Your current heating runs on heating oil or LPG, and it will be fully removed
- The property isn't fuelled by mains gas and has no record of a gas meter point (capped or clamped meters count as on-grid)
- It isn't on a heat network and isn't a new build or self-build
- You're installing an air-to-water (air source) or ground source heat pump, not air-to-air
- An MCS-certified installer applies and the application is properly made by 31 March 2027
Your installer will need evidence you're off-gas, such as an EPC or, if you don't have one, recent fuel bills and photos of your current heating. Check the other rules with our heat pump grant eligibility checker.
When is the deadline for the £9,000 heat pump grant?
Your application must be properly made by 31 March 2027. Ofgem counts an application as properly made only once it has all the information it needs and you've confirmed consent, so leave time for a survey, a quote and the paperwork.
| Step | Time limit (Ofgem) |
|---|---|
| Installer applies; you confirm consent with Ofgem | Within 14 days of Ofgem's email |
| Voucher valid to install | 3 months (air source) or 6 months (ground source) |
Don't leave it until March
On oil or LPG? Claim £9,000 before March 2027
We confirm you're off-gas, show the £9,000 on your quote and apply to Ofgem for you. We cover rural Lancashire and Greater Manchester.
How much does a heat pump cost after the £9,000 oil boiler grant?
After the £9,000 grant, half of air source heat pump installs would cost roughly £2,128 to £6,627, based on DESNZ BUS statistics for April–June 2026.
| BUS air source heat pumps, April–June 2026 | Installed cost | After £7,500 | After £9,000 |
|---|---|---|---|
| Lower quartile | £11,128 | £3,628 | £2,128 |
| Median | £12,908 | £5,408 | £3,908 |
| Upper quartile | £15,627 | £8,127 | £6,627 |
Oil-heated homes are often older, larger and rural, so heat loss and radiator upgrades can push the price up. The Warm Homes Loan Scheme can lend up to £20,000 for an air source heat pump (before the grant) to cover the rest. See how to tell if a heat pump quote is inflated.
Can you get a grant for a new oil boiler?
No, not in most cases. The Boiler Upgrade Scheme only funds heat pumps and biomass, and low-income grants such as the Warm Homes: Local Grant exclude oil boilers. ECO4 can replace a broken heating system for low-income households, but it ends on 31 December 2026. Read what boiler grants are still available.
Rural homes can also consider a biomass boiler, which gets £5,000 under the Boiler Upgrade Scheme in limited cases with extra air-quality rules. An air-to-air heat pump won't get the £9,000 rate; see our air-to-air heat pump grant guide.
What changes when you switch from oil to a heat pump?
Switching from oil to a heat pump removes the oil tank and deliveries, but usually needs a hot water cylinder and some larger radiators. A room-by-room heat loss survey tells you exactly what's needed.
- The oil boiler must be fully removed; your installer can arrange tank removal
- A hot water cylinder is needed if you don't already have one
- Some radiators may need upsizing, because heat pumps run at lower flow temperatures
- Older solid-wall homes are usually still eligible; see BUS eligibility for older properties
More on older homes in BUS eligibility for older properties, and what we install on our heat pump installation page. Worried about cold callers using the £9,000 offer? See is the Boiler Upgrade Scheme a scam?
Oil boiler grant FAQs
Is there a grant to replace an oil boiler?
Yes, if you replace it with a heat pump. From 21 July 2026, off-gas homes in England and Wales replacing oil or LPG heating get £9,000 off an air source or ground source heat pump through the Boiler Upgrade Scheme, on applications made by 31 March 2027. There's no grant for a new oil boiler.
Does the £9,000 grant cover LPG?
Yes. The government's announcement talks about heating oil, but Ofgem's guidance (v5.1) says the £9,000 rate applies to off-gas-grid properties replacing heating fuelled by oil or liquefied petroleum gas (LPG).
When does the £9,000 heat pump grant end?
It's available for applications properly made between 21 July 2026 and 31 March 2027. An application is only properly made once Ofgem has all the information and you've given consent, so start well before the deadline. After that, the standard £7,500 applies.
Can I get a grant for a new oil boiler?
Almost certainly not. The Boiler Upgrade Scheme only funds heat pumps and biomass, and low-income grants such as the Warm Homes: Local Grant exclude gas and oil boilers. ECO4 could replace a broken heating system for low-income households, but it ends on 31 December 2026.
Do I qualify if I have a capped gas meter?
No. Ofgem treats a property with a capped or clamped gas meter, or any record of a gas meter point, as on the gas grid, so you'd get the standard £7,500 rather than £9,000.
Does the £9,000 grant apply to self-builds?
No. Self-build properties aren't eligible for the uplifted grant, but they may still qualify for £7,500 if they meet the other rules.
Is there a £9,000 grant in Scotland?
Not through the Boiler Upgrade Scheme, which covers England and Wales. Home Energy Scotland offers up to £7,500 for a heat pump, plus £1,500 for eligible rural homes and an optional £7,500 interest-free loan.
Methodology and sources
Eligibility and dates come from Ofgem's BUS property owner guidance v5.1 (published 2 July 2026) and the GOV.UK announcement of 26 June 2026 (updated 16 September 2026). Costs are the DESNZ BUS statistics median and quartiles for air source heat pumps, April–June 2026; the oil-heated share is from Census 2021 table TS046. Loan details are from the DESNZ Warm Homes Loan Scheme rules (September 2026). We used primary sources only. Last checked 27 September 2026.
