Home Heating grants Guide
The Boiler Upgrade Scheme: £7,500 off a heat pump
Over 93,000 households have had the grant paid. You never touch the money and you can’t apply yourself, so the installer you pick decides most of how it goes.
The Boiler Upgrade Scheme (BUS) is the government grant that takes money off a new heat pump in England and Wales. It isn’t a free boiler, it doesn’t pay for gas boilers, and you never receive a payment yourself. Your installer applies, knocks the grant off your quote, and Ofgem pays them once the job is finished.
At a glance
| What you’re fitting | Grant | Time to finish the job |
|---|---|---|
| Air source (air-to-water) heat pump | £7,500 | 3 months from voucher |
| Ground or water source heat pump | £7,500 | 6 months from voucher |
| Air or ground source, replacing oil or LPG off the gas grid | £9,000 (applications made 21 July 2026 to 31 March 2027) | 3 or 6 months |
| Air-to-air heat pump | £2,500 | 3 months from voucher |
| Biomass boiler (rural, off-gas only) | £5,000 | 3 months from voucher |
One grant per property. Hybrid systems, such as a gas boiler working alongside a heat pump, don’t qualify.
Does anyone actually get it?
Yes, and in growing numbers. Up to the end of August 2026, installers had sent in 151,136 voucher applications, 125,321 vouchers had been issued and 93,364 grants had been paid. August 2026 was the busiest month for payouts since the scheme opened, with 3,260 redemptions paid.
The gap between applications and payments isn’t all failure. Some jobs are still in progress. Others expired, were withdrawn or were rejected, which is why the rest of this guide spends time on what goes wrong.
It also helps to know what people really pay. The median cost of an air source heat pump fitted under the scheme in April to June 2026 was £12,908 before the grant, so about £5,400 after £7,500 comes off. The median ground source job was £27,232. Your house may cost more or less, but if a quote is far above those figures, ask why.
How the Boiler Upgrade Scheme works
The scheme is installer-led. You can’t apply on your own. Here is the order things happen in:
- Pick an MCS certified installer. They must also belong to an approved consumer code (HIES, RECC or MCS). Check on the MCS website before you sign.
- Get a survey and a quote. The installer should visit, do a heat loss assessment and give you an itemised quote showing the full price, the grant, and what you pay after it.
- The installer applies for a voucher. They send Ofgem your details, the quote, and either an EPC reference or other evidence, such as a utility bill from the last three months and photos of your current heating.
- You confirm by email. Ofgem emails you from [email protected] with a secure link. You have 14 days to give consent and confirm your identity, or the application may be rejected.
- The work gets done. Once the voucher is issued, the installer has 3 months to fit, commission and claim for an air source job, or 6 months for ground source.
- The installer redeems the voucher. Ofgem tells you when the claim goes in, checks it, and pays the grant straight to the installer.
So when does the money land? For you, it lands on day one, as a discount on your quote. Ofgem’s guidance says this is a legal requirement: the installer must deduct the full grant upfront and must not ask you to pay that part. If your quote shows the full price with a promise of money “coming back later”, email [email protected] before you pay anything.
If Ofgem rejects a decision you think is wrong, your installer has 28 days from the decision notice to ask for a statutory review on your behalf.
Heat pump grant eligibility
For the standard air heat pump grant, you need to:
- own the property (second homes, rented-out homes and business premises count)
- live in England or Wales
- be replacing a fossil fuel system: gas, oil, LPG or electric heating
- remove that fossil fuel system completely, since you can’t keep it alongside the heat pump
- become the legal owner of the new heat pump once it’s fitted
That last point catches some finance deals. If a lender or installer keeps ownership of the heat pump, the job isn’t eligible.
Most new builds, social housing (including shared ownership) and homes that have already had public funding for a heat pump or biomass boiler are ruled out. You no longer need a valid EPC to apply. Since 28 April 2026, installers can use other evidence instead.
On oil or LPG? From 21 July 2026 to 31 March 2027, off-gas-grid homes replacing oil or LPG heating can get £9,000 towards an air source or ground source heat pump. “Off-gas-grid” means no record of a gas meter point at all, so a capped gas supply still counts as on the grid. Self-builds can’t get the higher amount. Take-up has been quick: in August 2026, 43% of vouchers issued were at the £9,000 rate. See our off-grid heating guides for more on moving away from oil.
Air-to-air heat pumps
Boiler Upgrade Scheme air to air grants are new. Since 28 April 2026, air-to-air heat pumps qualify for £2,500, but only in residential buildings. These systems blow warm air through indoor units and don’t heat your hot water, which is why the grant is smaller.
Do the sums carefully. Once you pay for MCS design, removing the old boiler and any electrical work, there may be little left of the £2,500. You’ll also need a separate way to heat water. Our air conditioning section explains how these units work.
Scotland and Northern Ireland
BUS only covers England and Wales. If you search for a gov.uk heat pump grant from elsewhere in the UK, this is what applies instead.
Scotland: Home Energy Scotland offers a grant of up to £7,500 for a heat pump, plus an optional interest-free loan of up to £7,500. Rural homes get an extra £1,500 on the heating grant. Unlike BUS, you apply yourself, you must not start work until you have a written funding offer, and the home must be your main residence. The heat pump must provide all your heating and hot water, so hybrid and air-to-air systems are excluded. Funding is first come, first served.
Northern Ireland: gov.uk lists the Northern Ireland Boiler Replacement Scheme as closed, and BUS doesn’t apply. Check NI Direct for anything new before you commit.
Where claims go wrong
Most stories of the grant “not coming through” trace back to one of these:
- You missed the email. The consent link goes to your inbox and lasts 14 days. Check your spam folder the week your installer applies.
- The job ran late. If the work isn’t fitted and claimed within 3 months (6 for ground source), the installer must withdraw the voucher and reapply, and you consent again.
- Work started with no voucher. Installers can apply up to 120 days after commissioning, but Ofgem warns these retrospective claims carry extra risk and aren’t guaranteed.
- The old boiler stays. Keeping a gas or oil boiler as backup makes the job ineligible.
- Wrong details. If the application has a mistake and your installer won’t fix it, contact [email protected] with your voucher reference.
- A rejected claim. If a voucher is rejected or revoked, whether the installer can bill you for the grant depends on your contract. Read that clause before signing.
Be wary of anyone knocking on your door with a “free boiler upgrade”. The real scheme is for heat pumps, only you can give consent, and if you think someone has applied without you knowing, contact [email protected]. Workmanship complaints go to the installer first, then to their consumer code.
Questions people ask
Is the Boiler Upgrade Scheme legit or a scam?
It’s a real government scheme run by Ofgem. Scams borrow its name. Genuine applications come through an MCS certified installer, and Ofgem emails you directly to confirm.
Do I get the £7,500 paid to my bank?
No. The grant comes off your quote and invoice, and Ofgem pays the installer after the job. You never receive a payment.
Can I get the grant for a new gas boiler?
No. Despite the name, it only covers heat pumps and, in limited cases, biomass boilers. For gas boiler options, see our boilers hub.
Can I fit the heat pump myself and still claim?
No. The installation must be done and claimed by an MCS certified installer who belongs to an approved consumer code.
Which heat pump type should I pick?
Both main types get the same grant in most homes. Our guide to air source vs ground source compares cost and space, and the grants hub lists other support.
Sources
- GOV.UK: Boiler Upgrade Scheme, what you can get
- GOV.UK: Boiler Upgrade Scheme, check if you’re eligible
- GOV.UK: Apply for the Boiler Upgrade Scheme (Scotland and Northern Ireland notes)
- Ofgem: BUS guidance for property owners, version 5.1 (July 2026)
- DESNZ: Boiler Upgrade Scheme statistics, August 2026 (published 24 September 2026)
- Ofgem: BUS monthly scheme update
- Home Energy Scotland: grants and loans