Boiler Upgrade Scheme: The £7,500 Heat Pump Grant
The UK Government pays £7,500 toward the cost of replacing your boiler with an air source or ground source heat pump. Your MCS-certified installer applies on your behalf — you pay the net amount.
How the Boiler Upgrade Scheme Works
The Boiler Upgrade Scheme (BUS) is administered by Ofgem on behalf of the UK Government. When you hire an MCS-certified installer to replace your existing boiler or electric heating system with a qualifying heat pump, your installer applies for a voucher worth £7,500 directly to Ofgem. The voucher amount is deducted from your invoice — you pay only the remainder.
The scheme is designed to make heat pump installations financially comparable to high-efficiency boiler replacements for most homeowners. After the grant, an air source heat pump installation typically costs £3,000–£8,000 depending on property size, existing radiator suitability, and whether a hot water cylinder is required.
Application Process (Step by Step)
Eligibility Requirements
Important: Northern Ireland has a separate scheme — the Boiler Replacement Scheme — administered by the Northern Ireland Department for the Economy. Contact your local authority for details.
10-Year Cost Comparison: Gas Boiler vs Heat Pump
| Cost Factor | New Gas Boiler | ASHP (after £7,500 BUS) |
|---|---|---|
| Installation Cost | £2,500–£3,500 | £3,000–£8,000 |
| Annual Running Cost (typical 3-bed semi) | £1,100–£1,400 | £900–£1,200 |
| Maintenance (annual service) | £80–£120 | £150–£200 |
| 10-Year Running Total | £11,800–£15,200 | £10,500–£14,000 |
| 10-Year Total (inc. install) | £14,300–£18,700 | £13,500–£22,000 |
| Carbon (tCO2e over 10yr) | ≈ 19 tonnes | ≈ 6 tonnes |
Based on Q1 2026 energy rates. ASHP running costs assume SPF of 2.8. Gas costs assume 6.99p/kWh (Ofgem Q1 2026 standing + unit). Results vary by property.
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Boiler Upgrade Scheme — Common Questions
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