Boiler Upgrade Scheme: Up to £9,000 Heat Pump Grant
The UK Government pays up to £9,000 toward replacing your boiler with a heat pump. The grant amount depends on your current heating fuel: oil and LPG homes receive £9,000 (increased from £7,500 from 21 July 2026); gas-connected homes receive £7,500. Your MCS-certified installer applies on your behalf — you pay only 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 grant voucher directly to Ofgem. The voucher amount is deducted from your invoice — you pay only the remainder.
From 21 July 2026, the grant amount is £9,000 for homes currently heated by oil or LPG. Homes on the mains gas grid continue to receive £7,500. 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 for oil/LPG homes or £4,500–£9,500 for gas homes, 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 BUS grant) |
|---|---|---|
| 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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