UK raises heat pump grant to £9,000 for oil-reliant homes

cream heat pump on outside wall of home with cream rendered walls and grass area in front of heat pump — *Rural homeowners reliant on oil boilers are set to benefit from the changes to the heat pump grant scheme* (Image credit: Oliver Hasselluhn/Getty Images)

The UK government has increased financial support for households switching from oil and LPG boilers to heat pumps, raising the maximum grant under the Boiler Upgrade Scheme to £9,000 for eligible homes.

The change is aimed at properties off the gas grid, particularly in rural areas where heating oil and bottled gas are commonly used.

We explain what has been announced, who it affects, and how the £9,000 heat pump grant will work for eligible homeowners.

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What has changed in the grant scheme

The Boiler Upgrade Scheme, which supports the installation of low-carbon heating systems, has been increased from £7,500 to £9,000 for households replacing oil or LPG boilers.

The higher grant applies to homes that are not connected to the gas grid and rely on heating oil or liquid petroleum gas. The funding can be used towards the cost of installing an air-source or ground-source heat pump.

The government says the change reflects higher upfront costs often faced by rural households upgrading heating systems.

Who is eligible and how it works

Engineer carrying out the twice yearly servicing of an old oil-fed cooker — *Those reliant on oil boilers are set to benefit from the scheme* (Image credit: Getty Images / triffitt)

The £9,000 grant is available to homeowners in England and Wales replacing fossil fuel heating systems with heat pumps.

Applicants must use an installer registered under the Boiler Upgrade Scheme, and the grant is paid directly to the installer, reducing upfront costs.

Homeowners can use the official UK government Boiler Upgrade Scheme eligibility checker on GOV.UK. It asks a few basic questions about your home and heating system and tells you if you’re likely to qualify.

How the support is applied in practice

The £9,000 grant is deducted from the upfront cost of installing a heat pump by an accredited installer, so homeowners pay a reduced price rather than claiming the money back later.

MCS-accredited installers registered under the Boiler Upgrade Scheme assess the property, confirm eligibility and complete the application process as part of the installation.

The scheme typically involves replacing the existing heating system, including removing oil or LPG boilers and installing a heat pump as the main source of heating.

In some cases, additional work such as adjustments to radiators or insulation may be needed, depending on the property.

The higher grant level is intended to make heat pump installations more financially accessible for households facing the highest upfront costs, particularly those replacing oil-based heating systems, and with rising oil costs, the news could come as some relief for rural homeowners.

News Editor Joseph has previously written for Today’s Media and Chambers & Partners, focusing on news for conveyancers and industry professionals. Joseph has just started his own self build project, building his own home on his family’s farm with planning permission for a timber frame, three-bedroom house in a one-acre field. The foundation work has already begun and he hopes to have the home built in the next year. Prior to this he renovated his family's home as well as doing several DIY projects, including installing a shower, building sheds, and livestock fences and shelters for the farm’s animals. Outside of homebuilding, Joseph loves rugby and has written for Rugby World, the world’s largest rugby magazine.