Home energy guide
The Boiler Upgrade Scheme: who gets the £7,500 heat pump grant
The Boiler Upgrade Scheme takes £7,500 off the price of an air or ground source heat pump in England and Wales. You do not apply yourself: your installer does. Here is who qualifies, what it covers and how to avoid losing it.
Last updated:
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How much you can get
Most people swapping to an air or ground source heat pump get £7,500 off. Homes heated by oil or LPG with no mains gas get an extra £1,500 until March 2027.
See the numbers
| System | Grant |
|---|---|
| Air source heat pump | £7,500 |
| Ground source heat pump (including water source) | £7,500 |
| Air-to-air heat pump | £2,500 |
| Biomass boiler (rural, off-gas homes only) | £5,000 |
| Extra for air or ground source in homes heated by oil or LPG with no mains gas (until March 2027) | +£1,500 |
You don't have to claim it yourself: your installer takes it off your bill and claims it back. It's paid once per property, and hybrid systems that keep a fossil-fuel boiler don't qualify.
Who qualifies
GOV.UK says you're eligible if you:
- own the property: your home, a second home, a business or a place you let to tenants; and
- are replacing a fossil-fuel system such as oil, gas, LPG or electric heating.
Already had funding for insulation or other energy-saving work? You can still apply.
Properties that don't qualify
- most new builds, including any the developer is still building;
- social housing;
- a property that's already had government funding for a heat pump or biomass boiler.
If you move into a finished new build with a fossil-fuel boiler, you may be able to claim. Self-builds qualify if you or the original owner built them (or paid a builder to), and a business has never owned them.
How it works
- Find an MCS-certified installer registered for the scheme. Get at least three quotes.
- Have a heat loss survey. A good installer works out what each room needs and designs the system to run at a low flow temperature.
- Agree the quote. The installer applies for the grant.
- Get it fitted within 120 days. GOV.UK says the installer must commission the heat pump within 120 days of applying, or it won't be eligible.
- The installer claims the grant after commissioning, and your bill should show it deducted.
What it does to the price
A typical air source heat pump costs about £12,000 (Energy Saving Trust). With the grant, a gas home pays about £4,500, and an oil or LPG home about £3,000. Installation in a home has 0% VAT until 31 March 2027, then 5% from 1 April 2027 (HMRC).
See the numbers
| System | Typical cost (0% VAT) | Same job at 5% VAT | You pay after £7,500 (0% VAT) |
|---|---|---|---|
| Air source, gas home | £12,000 | £12,600 | £4,500 |
| Air source, oil/LPG home (+£1,500) | £12,000 | £12,600 | £3,000 |
| Ground source, trenches | £15,000 | £15,750 | £7,500 |
EST puts ground source with trenches at about £15,000; boreholes cost considerably more.
If your boiler needs replacing anyway, compare the heat pump's net price with a new boiler, not with nothing. Our heat pump vs boiler guide covers running costs.
Traps to avoid
- Signing too early. Make sure the installer is applying for the grant and the quote shows it.
- Going hybrid. Keeping a boiler alongside the heat pump means no grant.
- Delays. Agree a realistic fitting date inside the 120 days.
- Cheap quotes with no design. A heat pump sized without a proper survey may run hotter and cost more. See our sizing and radiators guide.
Scotland, Northern Ireland and the islands
The Boiler Upgrade Scheme covers England and Wales. In Scotland, the Energy Saving Trust says you might get an interest-free loan or a grant. In Northern Ireland, it says there's no specific heat pump grant at the moment. Guernsey and Jersey are outside the scheme; check with the States of Guernsey and the Government of Jersey for any local help, which we haven't verified today.
Frequently asked questions
How much is the heat pump grant in 2026?
£7,500 for an air or ground source heat pump in England and Wales, £2,500 for air-to-air, and an extra £1,500 until March 2027 for air or ground source in homes heated by oil or LPG with no mains gas (GOV.UK, checked 27 October 2026).
Do I need to have insulation first?
GOV.UK's eligibility page lists ownership and replacing a fossil-fuel system as the conditions. Good insulation still helps a heat pump run efficiently, and having had insulation funding does not stop you claiming.
Can landlords get the Boiler Upgrade Scheme?
Yes. GOV.UK says you can apply for a property you let to tenants, a second home or a business, as long as you own it. Social housing is excluded.
Can I get the grant for a hybrid heat pump?
No. The scheme does not cover hybrid systems that keep a fossil-fuel boiler.
Related guides
- Heat pump vs gas or oil boiler: running costs
- Electricity tariffs for heat pumps: how time-of-use cuts running costs
- Air source vs ground source heat pumps: which suits your home?
- Do you need planning permission for a heat pump?
- Heat pump sizing, flow temperatures and radiators
- All home-energy calculators
Sources (checked 27 October 2026 unless stated)
- GOV.UK: Boiler Upgrade Scheme, what you can get: £7,500, £5,000, £2,500, +£1,500 off-gas until March 2027 (checked earlier on 27 Oct 2026)
- GOV.UK: Boiler Upgrade Scheme, check if you're eligible: ownership, fossil-fuel replacement, 120 days, exclusions, new and self builds
- Energy Saving Trust: Air source heat pumps: £12,000 typical cost; Scotland and Northern Ireland support
- Energy Saving Trust: Ground source heat pumps: about £15,000 with trenches
- HMRC VAT Notice 708/6: energy-saving materials: heat pumps zero-rated to 31 Mar 2027, 5% from 1 Apr 2027
- Local heat pump support in Guernsey and Jersey: not verified