finance
UK Heat Pump Grant Rises to £9,000 for Oil and LPG Homes From July
The Boiler Upgrade Scheme will offer £9,000 for air-to-water or ground source heat pumps to off-gas-grid homes replacing oil or LPG systems starting 21 July 2026. The higher rate runs until 31 March 2027. Standard grants remain £7,500 for other eligible households.
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The Boiler Upgrade Scheme will increase its grant to £9,000 for households currently heating with oil or LPG that install air-to-water or ground source heat pumps, beginning 21 July 2026. The uplift applies only to fresh applications submitted on or after that date and ends 31 March 2027. Vouchers already in progress before 21 July stay at the existing £7,500 level.
Air-to-water and ground source heat pumps receive £7,500 for most homes. Air-to-air heat pumps receive £2,500 in residential properties. Biomass boilers receive £5,000 in rural, off-gas-grid homes. Zero VAT applies to all qualifying installations.
Properties must be in England or Wales and owned by the applicant. The existing system must be fossil fuel or electric. The home must not already have a heat pump and must not be a new-build. Installation must be performed by an MCS-certified installer. Installers may now use utility bills and photographs where no valid EPC exists.
Applicants contact an MCS-certified installer listed on the MCS website. The installer assesses the property, confirms eligibility, and submits the voucher application to Ofgem. The grant is deducted from the final invoice after installation. The scheme operates under a fixed annual budget. Ofgem stops issuing vouchers once the budget is reached.
