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Heat pumps

The Boiler Upgrade Scheme

What the Boiler Upgrade Scheme pays, who qualifies, what is excluded, and how the installer-led application actually works.

The Boiler Upgrade Scheme is the main government grant for replacing a fossil fuel heating system with a heat pump in England and Wales. It is substantial and it is simpler to use than most people expect.

Last reviewed 4 Nov 2026.

What you get

TechnologyGrant
Air source heat pump£7,500
Ground source heat pump£7,500
Water source heat pump£7,500
Air source or ground source, eligible off-gas-grid property£9,000
Biomass boiler, rural off-grid properties£5,000

The higher off-gas-grid figure runs from 21 Jul 2026 to 31 Mar 2027. If your home is heated by oil or LPG, that is worth knowing and it has an end date on it.

Sources: Apply for the Boiler Upgrade Scheme and Ofgem.

You do not apply. Your installer does.

This is the part people get wrong, and it is good news.

The scheme is installer-led. An installer certified under the Microgeneration Certification Scheme (MCS) applies for the voucher on your behalf, redeems it, and takes the grant off the price you pay. You never hand over the full amount and you never wait for a refund.

So a heat pump quoted at £11,500 should appear on your quote with the grant already deducted. If an installer asks you to pay the full amount and claim it back yourself, something is wrong. Ask them to explain.

Check the installer is MCS certified before anything else. Without it there is no grant.

Who qualifies

You need to be:

  • Replacing a fossil fuel system, such as an oil or gas boiler, or an electric heating system such as storage or panel heaters
  • In England or Wales
  • The property owner, including landlords. Self-build is eligible

What is excluded

  • New build homes. With the exception of self-build.
  • Social housing.
  • Hybrid systems. A gas boiler paired with a heat pump does not qualify. It has to be a full replacement.
  • Replacing an existing low carbon system. If you already have a heat pump, the scheme is not for you.

The insulation requirement has gone

Until recently you needed a valid energy performance certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. That prerequisite was removed in 28 Apr 2026.

A great deal of advice online still says you must insulate first. For the purposes of the grant, you no longer do.

That said, insulation still affects how well the heat pump performs and therefore what it costs to run. It is no longer a gate, but it is still worth doing. See running costs.

Air-to-air heat pumps

The Warm Homes Plan brought air-to-air heat pumps into scope, which is significant because they do not need a wet heating system and are much cheaper to fit.

The grant for an air-to-air heat pump is £2,500, not the £7,500 paid towards an air-to-water or ground source system. It has been available under the Boiler Upgrade Scheme since 28 Apr 2026, in England and Wales, for homes only. The higher grant for off-gas-grid homes does not apply to air-to-air.

Source: gov.uk. Checked 4 Nov 2026.

Scotland and Northern Ireland

Scotland is outside the Boiler Upgrade Scheme Home Energy Scotland offers a £7,500 grant plus a £7,500 interest-free loan, with a £1,500 rural uplift, and it is not means tested. For heating, that is more generous than the English and Welsh scheme.

Northern Ireland is outside the Boiler Upgrade Scheme and has no direct equivalent.

Watch out for

  • An installer who is not MCS certified. No certification, no grant, and also no Smart Export Guarantee if solar is part of the job.
  • A quote showing the full price with the grant “to be claimed”. That is not how the scheme works.
  • Pressure around the off-gas-grid deadline. The 31 Mar 2027 date is real, but a real deadline is still no reason to accept a poor quote or skip getting comparisons.
  • A system sized by rule of thumb. A proper heat loss calculation for your specific house is the single best predictor of whether the system will perform. Ask to see it.