Heat Pump Grant Rises to £9,000 for Oil and LPG Homes From 21 July 2026

Correction (3 July 2026): an earlier version of this article said the Boiler Upgrade Scheme was rising to £9,000 for all applicants from 1 July 2026. That was wrong, and we’re sorry. The standard grant remains £7,500. The £9,000 rate is a targeted uplift for homes currently heated by oil or LPG, running 21 July 2026 to 31 March 2027. This article has been rewritten against GOV.UK, in line with our editorial standards.

What’s actually changing

• Standard BUS grant: £7,500 for air source and ground source heat pumps — unchanged
• Homes currently heated by oil or LPG: £9,000 from 21 July 2026 to 31 March 2027 (air-to-water and ground source)
• Air-to-air heat pumps: £2,500 (introduced April 2026, unchanged)
• No income test; scheme extended to March 2030 with a £400m budget for 2026-27

What it means in practice

A typical air source heat pump installation costs £8,000–£15,000 before grants. If you heat with mains gas, nothing changes: the £7,500 grant brings many projects into £2,500–£7,500 net territory. If you heat with oil or LPG — common in rural Lancashire, Cumbria and the Cheshire fringe — waiting until 21 July is worth an extra £1,500, taking a typical install to £2,000–£6,000 net.

The grant is claimed by your MCS-certified installer on your behalf, and the application date sets the amount — so oil and LPG households should talk to their installer about timing the application inside the uplift window.

Who qualifies

• You own the property (homeowners and small landlords)
• You’re replacing a fossil-fuel system — gas, oil or LPG (the £9,000 uplift needs the existing heating to be oil or LPG)
• The property has a valid EPC with no outstanding loft/cavity insulation recommendations (or you address them)
• England and Wales only — Scotland has separate Home Energy Scotland funding

Estimate your numbers

Our free savings calculator gives you a regional cost range, estimated annual saving and payback for a heat pump in your area — or read the full heat pump cost guide. Want quotes when our comparison service launches? Join the waitlist.