What is the Boiler Upgrade Scheme?

Definition: The Boiler Upgrade Scheme (BUS) is the government heat pump grant for England and Wales. It takes £7,500 off an air source or ground source heat pump fitted by an MCS-certified installer, who applies for you. Homes heated by oil or LPG with no mains gas get £9,000 instead, for applications made from 21 July 2026 to 31 March 2027. There’s no income test.

You’ll also see it called the heat pump boiler grant or the Ofgem heat pump grant. Same scheme: the Department for Energy Security and Net Zero (DESNZ) sets the rules and Ofgem runs it.

How much is the Boiler Upgrade Scheme grant?

£7,500 for most people. The amount depends on the technology and on what heats the building now, and it comes off your installer’s quote rather than being paid to you (GOV.UK, Ofgem).

*Applications properly made from 21 July 2026 to 31 March 2027. Voucher periods are from DESNZ’s BUS statistics.

Who gets £9,000 instead of £7,500?

Only properties where the heating runs on oil or LPG and there’s no mains gas connection (GOV.UK). Ofgem’s test is strict. A capped or clamped gas meter still counts as mains gas, and the property mustn’t have any record of a gas meter point, be on a heat network or be a new build (Ofgem property owner guidance v5.1, para 4.28). Self-builds get £7,500. The uplift covers air-to-water and ground source heat pumps only.

Ofgem only treats an application as “properly made” once you’ve given consent and passed the identity check, so don’t leave it to the last week of March. Timing rules and worked examples are in our £9,000 oil and LPG guide.

What does the grant cover?

Heat pumps, mostly. The system has to meet minimum efficiency standards, and capacity is capped at 45kWth for a single system, 70kWth where several heat pumps work together and 300kWth on a shared ground loop (GOV.UK). Ofgem adds that a heat pump must be sized to meet the property’s full space heating need.

Biomass boilers get £5,000, but only in rural properties off the gas grid, with an emissions certificate, and never in a self-build (GOV.UK eligibility).

Air-to-air heat pumps have been eligible for £2,500 since 28 April 2026, in homes only. Take-up is thin: 145 applications and no vouchers issued by the end of August 2026 (DESNZ). Our air-to-water vs air-to-air comparison covers when each makes sense.

Since the same April change, a BUS heat pump can in some cases run alongside another low-carbon heater. Never a fossil fuel one: the gas, oil or LPG system has to go completely (Ofgem guidance, paras 3.20 to 3.22).

Who qualifies for the Boiler Upgrade Scheme?

Two tests. You own the property, and you’re replacing fossil fuel heating, which GOV.UK says includes oil, gas, electric or LPG (GOV.UK). Income doesn’t come into it. Beyond that:

• Landlords and second-home owners qualify, one grant per property, and landlords must tell tenants about the work. See our landlords and second homes guide.
• Businesses and other organisations qualify for buildings they own (more below).
• Self-builds qualify if you or the original owner built the home, or paid a builder to, and it has never been owned by a business or organisation. Our self-build grants guide has the evidence rules.
• Most new builds don’t. A home the developer is still building is out, but if you move into a finished new build with a fossil fuel boiler, you may be able to claim.
• Churches and park homes may qualify, according to Ofgem.
• Social housing doesn’t, and that includes shared ownership. Nor does an address that has already had public money for a heat pump or biomass boiler.

Do you need an EPC or insulation first?

Not strictly. The rule that your EPC couldn’t show outstanding loft or cavity wall insulation recommendations went on 8 May 2024, and the valid EPC requirement was relaxed from 28 April 2026 (DESNZ scheme background). Without a valid EPC, your installer sends other evidence: a utility bill from the last three months, your latest fuel receipt, photos of the existing heating or an expired EPC (Ofgem guidance, para 4.24).

Get a new EPC anyway if yours has lapsed. It’s the cleanest evidence for the off-gas test behind the £9,000, and the Warm Homes: Local Grant still works off EPC bands (here’s what an EPC survey costs). Insulation is now advice, not a condition, whatever older guides say.

How do you claim the grant?

You don’t apply yourself. BUS is installer-led, and Ofgem won’t pre-approve anything before an installer applies (Ofgem guidance, para 2.03). The sequence:

1. Get quotes from installers certified under MCS. The MCS find an installer tool can filter for firms with a BUS installer account.
2. The installer does a heat loss assessment and gives you an itemised quote showing the price, the grant and what you pay. Deducting the grant upfront is a legal requirement. Here’s what a good heat pump quote looks like.
3. You agree the quote and the installer applies on Ofgem’s system. No forms for you.
4. Ofgem emails you from boiler.upgrade.scheme.ofgem@notifications.service.gov.uk with a secure link to confirm consent and identity. Reply within 14 days or the application may be rejected. You can only confirm one installer’s application per property.
5. Ofgem issues the voucher. The installer has 3 months to fit, commission and redeem it (6 for ground source). If the job overruns, the installer reapplies and you consent again.
6. Ofgem pays the installer, not you. MCS may check the job with you, and Ofgem may audit it.

One trap. An installer can apply up to 120 days after commissioning, but Ofgem warns retrospective applications carry extra risk, so don’t let work start before the voucher is issued.

Is there a Boiler Upgrade Scheme login?

Not for homeowners. The BUS login on GOV.UK is for installers, who sign in to their BUS installer account to apply for vouchers and check their status. Your only online step is the consent email. If someone asks you to log in to a “grant portal” or pay a fee to release your grant, treat it as a scam and read our guide to spotting energy grant scams. Questions about your application go to your installer first, general ones to BUS.Enquiry@ofgem.gov.uk.

Does the grant make a heat pump cheaper than a new boiler?

Not usually on mains gas. On oil, the £9,000 makes it roughly level.

DESNZ puts the median total cost of a BUS-funded air source heat pump at £12,908 in April to June 2026, including the part the grant pays (BUS statistics). Take off £7,500 and you pay £5,408, about double the £2,720 typical combi swap in our boiler price guide. Simpler jobs close the gap: our heat pump price guide models a typical three-bed air source install at £10,684, which leaves £3,184, within about £460 of that boiler.

The sums change in two cases. One is a gas job that’s already expensive: a system or regular boiler, a change of boiler type or a move to another room takes our boiler range up to £6,134, more than that £5,408. The other is oil or LPG with no mains gas. £9,000 off the median leaves £3,908, inside the £2,500 to £4,500 our oil boiler replacement guide gives for a like-for-like oil boiler. Ground source doesn’t get close: its median is £27,232, so you’d still pay £18,232 after £9,000.

Running costs are tighter. Under the October–December 2026 price cap, electricity (26.32p/kWh) costs 3.3 times as much as gas (7.97p/kWh). A boiler loses some heat up the flue, so against a 90%-efficient boiler a heat pump needs a seasonal efficiency (SCOP) of about 3 to match gas on unit prices, and good design is what gets it there. Our gas boiler vs heat pump comparison goes through the bills.

Want to see the grant on a real quote? Request a free quote and up to three approved installers who cover your area may contact you. No charge, no obligation.

What doesn’t the scheme cover?

• Hybrid systems, or any setup that keeps a gas, oil or LPG heater.
• Replacing an existing heat pump or another low-carbon system.
• A new gas, oil or LPG boiler.
• Heat pumps you don’t end up owning. Finance or leasing deals where a lender or installer keeps ownership aren’t eligible (Ofgem guidance, para 4.43).
• Air-to-air heat pumps in non-residential buildings.
• Anything in Scotland or Northern Ireland.

Can you combine it with 0% VAT and the Warm Homes: Local Grant?

0% VAT, yes. Installing a heat pump in a home is zero-rated until 31 March 2027 and the grant comes off on top; from 1 April 2027 the rate goes back to 5% (HMRC VAT Notice 708/6).

The Warm Homes: Local Grant works alongside BUS for different jobs, and GOV.UK confirms insulation funding doesn’t affect BUS eligibility. For the heat pump itself it’s one or the other. If you’re in England, your EPC is D to G and your household income is under £36,000 (or you get means-tested benefits), check the Warm Homes: Local Grant first. Its low-carbon heating cap is £16,600, more than twice the standard BUS grant. ECO4 has been extended to 31 December 2026, but ECO4 money can’t be combined with BUS on the same project, so ECO4-funded insulation and a BUS-funded heat pump have to be separate jobs.

How long will the scheme run?

Funding is confirmed up to 2029/30 through the Warm Homes Plan, so on current plans BUS runs to March 2030 (DESNZ). This year’s budget is £400 million (GOV.UK). Vouchers are first come, first served until each year’s budget runs out, and demand is climbing. July 2026 brought 8,150 applications, the most in any month since launch. Our BUS uptake statistics track the trend. If you’re on oil or LPG, apply this winter, not next spring.

What about Scotland, Wales and Northern Ireland?

Wales is in BUS on the same terms as England. Low-income Welsh households should also check Nest, which is means-tested and funds heat pumps.

Scotland isn’t in BUS. Home Energy Scotland offers a heat pump grant of £7,500, plus £1,500 in rural areas, and up to £7,500 more as a loan (see our Home Energy Scotland guide).

Northern Ireland has no BUS, and GOV.UK notes its old Boiler Replacement Scheme is closed. Help there is income-tested: Affordable Warmth for households under £23,000, and NISEP-funded schemes for low-income owner-occupiers. See our Northern Ireland heat pump grants guide and NISEP and Affordable Warmth guide.

Can businesses and public sector buildings get a heat pump grant?

Yes, if the building is small enough. GOV.UK says you can use BUS for “a building used for your business”, at the same £7,500 for an air source or ground source heat pump, within the capacity caps above. Take-up is tiny: 576 of the 93,364 grants paid by the end of August 2026 went to non-domestic buildings (DESNZ). And the 0% VAT rate covers homes and charitable buildings, not ordinary business premises (HMRC).

Bigger public buildings have their own route. The Public Sector Decarbonisation Scheme, delivered by Salix Finance for DESNZ, helps buildings such as schools and hospitals in England switch to cleaner heating. Phase 4 closed to new applications in November 2024, though grants are still being awarded under it (GOV.UK), and Salix lists its current phases as in delivery. Until a new round opens, BUS is the realistic route for a small public building that meets its rules.

We don’t install or test heating systems: this guide is based on published rules, prices and data from GOV.UK, Ofgem, DESNZ and HMRC, checked September 2026.

FAQs

Who runs the Boiler Upgrade Scheme, GOV.UK or Ofgem?

Both. DESNZ sets the rules and grant values, published on GOV.UK. Ofgem administers the scheme: it checks applications, issues vouchers, pays installers and audits installations.

How much is the Boiler Upgrade Scheme for oil homes?

£9,000 towards an air-to-water or ground source heat pump if the home is heated by oil or LPG and has no mains gas connection, for applications properly made from 21 July 2026 to 31 March 2027. After that it’s £7,500.

Can I log in and apply for the grant myself?

No. Only installers certified under MCS have BUS accounts. You confirm consent and identity through a secure link Ofgem emails you after your installer applies.

Is the Boiler Upgrade Scheme different in Sheffield, Manchester or Chelmsford?

No. It’s a national scheme with the same grant and rules across England and Wales. Installer prices and availability vary by area, so compare local quotes.

Can I get the grant if my boiler still works?

Yes. GOV.UK’s tests are about owning the property and replacing fossil fuel heating, and nothing requires the old boiler to have failed. Switching before a breakdown gives you time to compare quotes.