Boiler Upgrade Scheme 2026: £7,500 to £9,000 Grants

Boiler Upgrade Scheme 2026: What's in Force and What's Only Announced

Four things changed in 2026, and only some of them are live. Here's where each one stood on October 29, 2026.

The honest summary: if you heat with oil or LPG, the £9,000 rate is the best deal this scheme has ever offered, and it has a hard stop on 31 March 2027. Everyone else gets the same £7,500 that's applied since October 2023, with more certainty than before that the money will still be there next year.

Who Qualifies for the Boiler Upgrade Scheme, and Who Doesn't

There are only 2 core tests on GOV.UK's eligibility page (opens in a new tab): you must own the property and you must be replacing a fossil fuel heating system (oil, gas, electric or LPG). Income doesn't matter, and having had other energy efficiency funding, such as insulation, doesn't stop you.

Properties that can qualify:

• Your own home, including one with a mortgage
• A second home
• A home you rent out to tenants (Ofgem's guidance says landlords must tell the tenant about the installation)
• A small business building, within the capacity limits
• A self-build, if you or the original owner built it (or paid a builder) and it's never been owned by a business
• A finished new build you've moved into that came with a fossil fuel boiler

Properties that can't:

• Homes in Scotland and Northern Ireland. The scheme is open in England and Wales only.
• Social housing.
• Most new builds still being built by the developer.
• Any property that's already had government funding for a heat pump or biomass boiler. You get one grant per property.
• Hybrid systems (for example, a gas boiler working alongside an air source heat pump).
• A replacement for an existing low carbon system. You can't use the grant to swap one heat pump for another.

Extra rules for biomass. GOV.UK says a biomass boiler only qualifies if the property is off the gas grid, in a rural location and the boiler has an emissions certificate. Biomass can't be funded in a self-build.

Extra rules for the £9,000 rate. Ofgem's guidance says the home must not be fuelled by mains gas, must have no record of a gas meter point (a capped or clamped meter still counts as gas), mustn't be on a heat network and mustn't be a new build, and the heating being replaced must run on oil or LPG. A home heated by direct electric storage heaters off the gas grid gets £7,500, not £9,000.

Capacity limits. GOV.UK caps systems at 45kWth for an individual system, 70kWth where more than one heat pump is installed and 300kWth for shared ground loops. That covers almost every house.

What the Grant Pays For: Grantsights Analysis of 96,611 Grants Paid

The scheme had paid 96,611 grants by the end of September 2026, and 97.9% of them were for air-to-water heat pumps. Grantsights analysis of Table 1.1 of the DESNZ September 2026 data follows each application through to payment.

Source: DESNZ, Boiler Upgrade Scheme statistics: September 2026, Table 1.1 (May 2022 to September 2026, England and Wales). Provisional.

Two things stand out. First, air-to-air heat pumps have been in the rules since April 28, 2026, but no voucher had been issued for one by September 30, 2026; the government's loan factsheet says air-to-air support applies "when MCS certification available". If an installer quotes you a £2,500 air-to-air grant, ask whether they've had one issued yet. Second, biomass is a niche: 426 grants in four and a half years.

What people replaced. According to the DESNZ September 2026 data (Table 1.3), 55% of paid grants replaced gas, 18% replaced oil, 13% went to properties with no previous heating system, 9.6% replaced direct electric heating, 3.1% replaced LPG and 1.1% replaced coal. That 13% "no heating" group is mostly self-builds and properties that had been without a working system.

The growth curve. Grants paid each financial year rose from 9,952 in 2022 to 2023, to 13,829, then 25,201, then 30,996 in 2025 to 2026. Another 16,633 were paid between April and September 2026. Monthly applications reached 9,738 in September 2026, the highest since the scheme started and 138% above September 2025's 4,089.

The £9,000 effect. DESNZ says 8,107 applications for the £9,000 off-gas grant arrived between July and September 2026, 32% of all 25,374 applications in that quarter. In September, 1,205 of the 3,332 grants paid (36%) were at the higher rate. A government press release on August 27, 2026 said leaflets had gone to 200,000 eligible homes in June.

What a Heat Pump Really Costs After the Grant

The grant isn't the whole bill, and for most people the balance is £3,000 to £8,000. DESNZ publishes the reported installation cost of every paid grant, including the grant itself, and Grantsights subtracted the grant to show what owners pay.

Source: DESNZ, Boiler Upgrade Scheme statistics: September 2026, Table Q1.1A (2026 Q3). The "after grant" column is Grantsights' subtraction, not a DESNZ figure.

For an off-gas home on oil or LPG getting £9,000, the median air source job leaves about £3,826 to pay. The median installed air source heat pump in that quarter was 8kW.

Costs have fallen. DESNZ says that after adjusting for inflation, the median air source heat pump cost in July to September 2026 was 14% lower than the same quarter of 2022, when it was £14,989. Ground source costs jumped in the latest quarter (from £27,232 to £34,630 at the median), alongside a rise in median size from 10.5kW to 15kW, so treat that single quarter with caution.

Paying the balance. The Warm Homes Loan Scheme (opens in a new tab), launched on October 28, 2026, lets homeowners anywhere in the UK borrow for a heat pump through one of 10 named lenders. The government's factsheet says loans of up to £20,000 for an air source heat pump and £35,000 for a ground source heat pump can sit alongside the grant, with interest rates up to 5 percentage points below regular loans and some loans interest-free. You can't use a loan and other government funding for the same part of the work, and you'll face normal credit checks.

Where the Grants Went: Grantsights Analysis by Region and Council

The South West has taken heat pump grants at 4.6 times London's rate per household. Grantsights analysis of Tables 1.2A and 1.2B of the DESNZ September 2026 data ranks every English region and Wales by grants paid.

Source: DESNZ, Boiler Upgrade Scheme statistics: September 2026, Tables 1.2A and 1.2B. Household rates use ONS Families and Households 2025, as published in Table 1.2B.

The pattern follows housing type. DESNZ says 49% of paid grants went to rural properties and 39% (37,449) to homes off the gas grid, while London's flats and terraces are harder to fit with an outdoor unit. A case in point is Cornwall, where Table Q1.2 shows 3,448 heat pump grants paid, more than any other single council area in England and Wales. North Yorkshire (2,310), Wiltshire (1,794), Somerset (1,727), Buckinghamshire (1,427) and Dorset (1,390) follow among unitary councils, and Hampshire (3,537) and Devon (3,352) lead the two-tier counties. At the other end, the City of London had none and the Isles of Scilly had 11.

None of this changes your eligibility, which is the same everywhere in England and Wales. It does suggest that installer choice and competition are thinner in the regions at the bottom of the table, so you may need to look further afield for quotes.

How to Get the Grant: The 6 Steps and Real Timelines

GOV.UK's how to apply page (opens in a new tab) and Ofgem's property owner guidance set out 6 steps. You never fill in a government form yourself.

1. Check your home is suitable. GOV.UK's heat pump suitability checker (opens in a new tab) gives a first view. An installer's survey is what counts.
2. Get at least 2 or 3 quotes from MCS certified installers. Use the MCS installer search (opens in a new tab). Since April 28, 2026, every quote must show the grant deducted upfront.
3. Agree a quote. Your installer confirms you're eligible and applies to Ofgem for a voucher.
4. Give consent within 14 days. Ofgem emails you to confirm the installer is acting for you and to verify your identity. According to the Ofgem property owner guide (version 5.1), if you don't respond within 14 days, the application may be rejected and your installer may have to start again.
5. Installation. Once the voucher is issued, the installer must finish, commission and redeem it within 3 months for air source, air-to-air and biomass, or 6 months for ground source. If they can't, the voucher may need to be withdrawn and a new one applied for.
6. Checks. Ofgem may phone you or visit to check the installation, and MCS may run its own checks.

How long it takes. No official page publishes an average wait from first quote to finished job. The voucher rules set the outer limit once a voucher is issued: 3 months for air source and 6 months for ground source. Before that, allow time for surveys, quotes and the 14-day consent step.

Applying after the work is done. Ofgem's guidance allows an installer to apply within 120 days of commissioning, but it warns that retrospective applications carry extra risk and a grant isn't guaranteed. The safer route is to have the voucher issued before work starts.

What Ofgem Doesn't Tell You About the Boiler Upgrade Scheme

Ofgem's guidance explains the process well. What it doesn't spell out is how the numbers and the rules play out for a household deciding right now.

The grant covers less than you think on ground source. According to the DESNZ quarterly cost data, a ground source job had a £34,630 median in July to September 2026. At that price, a ground source system leaves £27,130 to pay after the standard grant. The scheme pays the same £7,500 for both types, so the grant covers 58% of a median air source job but 22% of a median ground source job. Unless you have a strong reason (very large home, shared ground loop, space constraints for an outdoor unit), air source is where the grant does the most work.

Not every installer chases every job. Ofgem doesn't publish rejection rates or how many quotes households typically need, and 29,255 applications hadn't turned into vouchers by September 30, 2026. Some were still in progress, some were withdrawn, some were rejected. If your first installer goes quiet after the survey, that's common, and it doesn't mean you're ineligible.

The deadline that matters is March 31, 2027, but only for oil and LPG homes. The £9,000 rate applies to applications "properly made" by that date, which Ofgem defines as complete information plus your consent and identity check. Leaving it to the last fortnight is a mistake: a missed 14-day consent email can push you past the cut-off.

Insulation isn't a rule, but it's still your problem. The insulation condition was dropped in May 2024. Ofgem's guidance still says heat pumps work best in a well-insulated home. An installer who sizes a heat pump for an uninsulated loft is sizing it for higher running costs. Ask the installer to show you the heat loss calculation.

The budget is first come, first served each year. DESNZ says vouchers are issued until the budget cap for the financial year is reached. With record applications in autumn 2026, it's worth watching Ofgem's budget updates if you're planning a job for early 2027.

Boiler Upgrade Scheme Scams and Cold Callers: How to Check an Offer

Heat pump and "free boiler" adverts attract dishonest sellers. The official guidance comes down to 6 checks:

• The grant must come off your invoice. Since April 28, 2026, installers must deduct it upfront, per Ofgem's guidance. Anyone asking you to pay full price and "claim the £7,500 back later" isn't following the rules.
• Only MCS certified installers can claim. Check the company on the MCS installer search (opens in a new tab) yourself, not from a link the caller sends.
• MCS doesn't cold call. MCS's scam guidance (opens in a new tab) says it never shares your details with installers or asks them to contact you, and it won't sell you warranties. Its genuine BUS checks come from boilerupgradescheme@mcscertified.com or 0333 103 8198.
• Ofgem's consent email is expected, but only after you've agreed a quote. If you get one for work you didn't agree, Ofgem's guidance says to contact its Counter Fraud team at counterfraud@ofgem.gov.uk.
• Don't sign on the doorstep. MCS warns that cold callers often offer urgent deals; take your time and compare quotes.
• Report it. MCS points people to the Citizens Advice Consumer Service on 0808 223 1133. For questions about a voucher, Ofgem's line is 0330 053 2006.

If a heat pump installation goes wrong, start with the installer, then MCS (hello@mcscertified.com or 0333 103 8130). Ofgem doesn't certify installers or products.

If You Can't Use the Boiler Upgrade Scheme: Other Routes

The scheme only covers 2 of the UK's 4 nations and excludes some homes, so here are the alternatives, starting with the one that pays the most.

• Scotland: the Home Energy Scotland Grant and Loan (opens in a new tab) offers up to £7,500 grant for a heat pump plus an optional £7,500 interest-free loan, with a £1,500 rural uplift. It's for homeowners living in the home as their main residence, and air-to-air and hybrid heat pumps aren't eligible.
• Northern Ireland: GOV.UK says the Boiler Replacement Scheme is closed. See NI Direct's energy saving grants page (opens in a new tab). The Warm Homes Loan Scheme covers Northern Ireland.
• England, on a low income: the Warm Homes: Local Grant (opens in a new tab) can fund an air source heat pump for free if household income is usually £36,000 or less (with exceptions) and the home is rated EPC D to G. Councils usually make contact within 10 working days.
• Wales, on a low income: the Welsh Government's Nest scheme (opens in a new tab) can fund heat pumps, insulation and solar panels for eligible households (0808 808 2244).
• ECO4 households: ECO4 also funded heat pumps, but it ends on 31 December 2026 and can't be combined with this grant on the same job. Our ECO4 scheme guide explains what's still possible.

If you're interested in solar alongside a heat pump, our solar panel grants UK guide covers what support exists for panels and batteries. For help with this winter's bills rather than new heating, see our Warm Home Discount guide. If someone in your home is disabled and needs adaptations as well as heating work, the disabled facilities grant guide is a better fit. Readers in the Republic of Ireland should look at our SEAI grants guide, since this scheme doesn't apply there.

Sources Checked

All sources were read or downloaded on October 29, 2026:

• GOV.UK, Apply for the Boiler Upgrade Scheme (opens in a new tab): overview, what you can get (opens in a new tab), check if you're eligible (opens in a new tab) and how to apply (opens in a new tab)
• Ofgem, Boiler Upgrade Scheme (opens in a new tab) and Guidance for Property Owners (opens in a new tab) (version 5.1)
• DESNZ, Boiler Upgrade Scheme statistics: September 2026 (opens in a new tab), Tables 1.1, 1.2A, 1.2B, 1.3, 1.5, 1.6, A1.4, M1.1, Q1.1A and Q1.2, and the release's scheme background and commentary
• DESNZ, Boiler Upgrade Scheme: budget increase, April 2026 (opens in a new tab)
• DESNZ, Warm Homes Plan (opens in a new tab) (funding allocations table)
• DESNZ, Record number of heating oil households apply for a heat pump (opens in a new tab) (August 27, 2026)
• GOV.UK, Warm Homes Loan Scheme (opens in a new tab) and Warm Homes Loan Scheme: Factsheet (opens in a new tab)
• GOV.UK, Warm Homes: Local Grant (opens in a new tab); Welsh Government, Nest (opens in a new tab); Home Energy Scotland, Grant and Loan (opens in a new tab); NI Direct, energy saving grants (opens in a new tab)
• MCS, Be Scam Aware (opens in a new tab)