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Boiler Upgrade Scheme

Checked against its sources: Updated

The Boiler Upgrade Scheme pays £7,500 towards an air or ground source heat pump in England and Wales, through an MCS certified installer; it does not pay for a gas boiler.12 Homes on oil or LPG with no mains gas connection can get £9,000 until 31 March 2027.2

Covers
England and Wales only. Figures as read on 3 November 2026.
You
Own the property, check eligibility, choose an installer.
A professional
An MCS certified installer applies for the grant and commissions the system.

1 What it pays

Grant amounts as read
TechnologyGrant
Air-to-water heat pump£7,5002
Ground or water source heat pump£7,5002
Biomass boiler£5,0002
Air-to-air heat pump, residential only£2,5003
Air or ground source with off-gas uplift£9,000 until 31 March 202723

The name misleads: gas and oil boilers are not on the list. The scheme replaces fossil fuel heating with low carbon heating, and there is no grant for hybrid systems2. See heat pump or boiler for a comparison of the two, and replacing a boiler for a gas-to-gas change.

2 Who qualifies

You must own the property, which includes second homes and rented-out homes, and be replacing fossil fuel heating, including oil, gas, electric or LPG4. Most new builds, social housing and property already funded for a heat pump or biomass are excluded4. Biomass needs an off-grid, rural property and an emissions certificate4. The installer must commission the system within 120 days of applying4.

The process is led by the installer, not the householder, so the first step is choosing one1.

3 Dates and what is planned

GOV.UK and Ofgem give no end date for the scheme13. The Warm Homes Plan of 21 January 2026, updated 18 March 2026, funds it at around £2.7bn "out to 2029/30", and says the grant level is under review5. It also describes a planned £2,500 for heat batteries and removing the new EPC requirement, but the GOV.UK list read does not show either, so treat them as plans5.

Installing energy-saving materials, including heat pumps, is zero-rated for VAT until 31 March 2027, then 5%6. Other nations have their own routes; see heating grants by country.

Sources

  1. Apply for the Boiler Upgrade Scheme, GOV.UK read 3 November 2026.
  2. Grant amounts page, GOV.UK guide to the scheme read 3 November 2026.
  3. Boiler Upgrade Scheme, Ofgem read 3 November 2026.
  4. Eligibility page, GOV.UK guide to the scheme read 3 November 2026.
  5. Warm Homes Plan policy paper, March 2026 update read 3 November 2026.
  6. VAT Notice 708/6, updated 31 January 2024, section 1.1 read 3 November 2026.