UK Government Grant — Updated Q1 2026

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.

£7,500
Air Source Heat Pump
£7,500
Ground Source Heat Pump
31 Dec 2027
Scheme End Date

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)

1
Get a free quote
Request quotes from MCS-certified installers through our matching service.
2
Installer confirms eligibility
Your chosen installer checks your EPC, property details, and heat pump suitability.
3
Installer applies for the voucher
Your MCS-certified installer submits a BUS voucher application to Ofgem before installation begins.
4
Voucher issued (≈5 days)
Ofgem typically issues vouchers within 5 working days. Vouchers are valid for 3 months.
5
Installation completed
Your heat pump is installed and commissioned to MCS standards.
6
Grant deducted from invoice
The £7,500 is deducted from your final invoice. You pay the net amount only.

Eligibility Requirements

EPC Required
Yes — any rating, within 10 years
Insulation Required?
No — removed from criteria March 2024
Property Type
England, Scotland, Wales (not NI)
Existing Heat Pump
None currently installed
Installer Certification
MCS-certified only
Ownership
Owner-occupier or landlord

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

Claim Your £7,500 Grant — Before 2027

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