If you're considering an air source heat pump, the Boiler Upgrade Scheme (BUS) is the single biggest piece of government support available — and it's paid directly to your installer, reducing your upfront cost from day one. Here's exactly how it works.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme is a grant (not a loan) administered by Ofgem on behalf of the UK government, designed to help homeowners and small landlords in England and Wales replace fossil fuel heating systems with low-carbon alternatives. It currently offers £7,500 toward the cost of an air source or ground source heat pump, or a biomass boiler in certain rural cases.
The July 2026 off-gas-grid uplift
From July 2026, the scheme introduces an additional £1,500 uplift for homes not connected to the mains gas grid, taking the total available grant to £9,000 for eligible off-grid properties. This recognises that off-gas-grid homes — often relying on oil or LPG heating — stand to gain the most from switching to a heat pump, both financially and in carbon terms.
🏠 Is your home eligible?
There's no income restriction on the Boiler Upgrade Scheme. Eligibility depends on your property (it must have an existing heating system being replaced, and in most cases a valid EPC) rather than your earnings.
How the grant is applied
Crucially, you never receive the grant money directly — your MCS-certified installer applies for it on your behalf through Ofgem's online portal, and it's deducted from your final invoice. This means the price you're quoted for your heat pump installation should already reflect the grant, not require you to claim it back afterward.
What it actually costs after the grant
A typical domestic air source heat pump installation costs between £9,000 and £14,000 before any grant, depending on property size, existing heating system, and whether radiators need upgrading. After the £7,500 BUS grant, most homeowners pay between £1,500 and £6,500 — broadly comparable to a high-end gas boiler replacement.
| Scenario | Typical Install Cost | Grant | Your Cost |
|---|---|---|---|
| On-grid, average semi | £10,500 | £7,500 | £3,000 |
| Off-grid (from Jul 2026) | £11,500 | £9,000 | £2,500 |
| Larger detached property | £14,000 | £7,500 | £6,500 |
Do I need to do anything else?
Your installer handles the grant application, but you'll need an up-to-date Energy Performance Certificate (EPC) for your property, and in some cases, basic loft and cavity wall insulation in place first, since the scheme wants to ensure your home can use a heat pump efficiently.
⏳ Timing matters
Boiler Upgrade Scheme funding is allocated on an annual budget. While demand hasn't historically exhausted the budget early in the year, applying well ahead of any heating system failure gives you more flexibility and avoids a rushed decision.
Is a heat pump right for your home?
Heat pumps work best in homes with decent insulation and either underfloor heating or appropriately sized radiators. Older, poorly insulated properties can still benefit, but may need some additional work first to get the most out of the system. A proper heat loss survey — which we provide free as part of any quote — will tell you exactly what your home needs.