More than 200,000 eligible homeowners will receive a leaflet through their letterbox next week advising them how to claim extra funding if they want to upgrade to a heat pump.
Originally announced earlier this year, the uplift in funding from £7,500 to £9,000 under the Boiler Upgrade Scheme, is targeted at properties in England and Wales that don't connect to mains gas, and are reliant on an oil or LPG boiler.
Coming into force on 21 July 2026, it is hoped the 20% increase will make it more affordable for thousands of homeowners to make the switch.
Why the extra funding is being made available
The Boiler Upgrade Scheme (BUS) supports the installation of low-carbon heating systems, and is currently capped at £7,500 for households replacing gas boilers.
The higher grant of £9,000 will apply to homeowners in England and Wales who are looking to replace an oil or LPG fed boiler with 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, and has partly been fuelled by the crisis in the Middle East.
In a government statement, Minister for Energy Consumers, Martin McCluskey, said: "This government is determined to bring down energy bills, but I know the war in the Middle East has hit households on heating oil especially hard. We have already taken action to support these households through confirming over £50 million in support for vulnerable customers on heating oil. Now, the Boiler Upgrade Scheme will help thousands of families across England and Wales switch to clean heat to protect them from volatile fossil fuels."
How the process will work
As with all Boiler Upgrade Scheme grants, the heat pump must be installed by a Microgeneration Certification Scheme (MCS) registered installer, who can apply for the grant on your behalf. The money is paid directly to them, thereby reducing your upfront costs.
If you don't receive a leaflet over the coming weeks, homeowners can also use the official UK government Boiler Upgrade Scheme eligibility checker on GOV.UK to see if they are eligible. It asks a few basic questions about your home and heating system and tells you if you’re likely to qualify.
However, there are some conditions. There is an end date to the increased amount which is currently stated as March 2027. The same 120-day install window also applies, meaning your installer must commission and install the heat pump within 120 days of applying for the grant.
How your eligibility will be assessed
The leaflet being issued by the government will explain how to assess your suitability, but in essence, a registered installer will also look at your home, confirm eligibility, and complete the application process as part of the installation.
What will then happen is that the installer will typically replace the existing heating system, including removing oil or LPG boilers and install a heat pump as the new 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.
On the whole, it has been received positively by industry leaders, with Matt Copeland, Head of Policy and Public affairs at National Energy Action saying in response to the government statement: "This is a positive step for households relying on heating oil, who have recently faced the highest and most volatile energy costs. Many families will be expecting to ration their heating in the coming winter, living in homes they cannot afford to keep warm, not through choice but constraint.
"Supporting the shift to cleaner heating in these homes can help deliver greater stability and lower bills. The real test," he notes, "will be whether this support reaches those most at risk and makes homes genuinely affordable to heat."
