Boiler Upgrade Scheme Explained: Claim £7,500 for Your Heat Pump

Who can claim the grant

The Boiler Upgrade Scheme is open to homeowners and small non-domestic landlords in England and Wales. The core conditions are straightforward:

• You own the property, which can be a home or a small business premises.
• The property has a valid EPC with no outstanding insulation recommendations.
• The heat pump replaces a fossil fuel system such as gas, oil, LPG or electric.
• The installation is carried out by an MCS certified installer.

New build properties are generally excluded, as are homes already on certain other funding schemes for the same measure. If your EPC flags missing loft or cavity insulation, you will usually need to address that first, which a council insulation grant can often fund.

The £9,000 increase for oil and LPG homes

From July 2026 the grant rises from £7,500 to £9,000 for homes currently heated by oil or LPG. These off-gas-grid homes have the most to gain from switching, because oil and LPG are expensive and a heat pump cuts running costs substantially. If you heat with oil and are not in a rush, it can be worth timing your installation to capture the higher grant.

How the application works

This is the part homeowners often get wrong: you do not apply yourself. The process runs through your installer:

1. Your MCS certified installer surveys your home and designs the system.
2. They check your EPC and confirm eligibility.
3. They submit the grant application to Ofgem on your behalf.
4. The £7,500 is deducted from your invoice, so you pay only the balance.

At Northants Heat Pumps we handle all of this. You never deal with Ofgem directly. See the full process on our installation page.

Combining BUS with other funding

The £7,500 grant cannot be claimed at the same time as ECO4 for the same heat pump, because both are government funded. However it stacks with 0% VAT, and council insulation and efficiency grants can fund the improvements that get your property BUS-ready. For benefit-receiving households, a fully funded ECO4 installation may be the better route. We work out the optimal combination during your survey. The full list is on our grants and funding page.

Is the grant worth the effort?

At £7,500, or £9,000 for oil and LPG homes, the Boiler Upgrade Scheme covers most or all of the difference between a heat pump and a new gas boiler. Combined with 0% VAT it transforms the economics of switching. Because we handle the paperwork, the effort on your side is minimal. Start with a free survey via our contact page.