Quick answer
The Boiler Upgrade Scheme (BUS) is a government grant in England and Wales that pays £7,500 towards an air-source or ground-source heat pump (or £5,000 towards a biomass boiler in eligible properties). It is not a grant for a new gas boiler — its purpose is to move homes away from gas and oil heating.
You don't apply yourself: an MCS-certified installer confirms eligibility, deducts the grant from your quote, and claims it back from Ofgem.
Scotland and Northern Ireland run their own separate schemes.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a government grant in England and Wales that helps with the upfront cost of replacing a fossil-fuel heating system with a low-carbon one.
In 2026 it offers a fixed grant of £7,500 towards an air-source or ground-source heat pump, and in limited circumstances a grant towards a biomass boiler (typically for rural, off-gas-grid properties where a heat pump isn't suitable).
The key point most people get wrong: it is not a grant for a new gas boiler. The whole purpose of the scheme is to move homes away from gas and oil heating, so a like-for-like gas combi or system boiler swap does not qualify for any BUS funding.
In one line: the Boiler Upgrade Scheme pays £7,500 towards a heat pump (or biomass in some cases) to replace a gas or oil boiler — it does not fund a replacement gas boiler.
How much is the grant?
The grant amounts in 2026 are fixed and discount-based — they come off the price your installer quotes, rather than being paid to you. Indicative figures:
| Technology | Grant (indicative, last checked 2026) |
|---|---|
| Air-source (air-to-water) heat pump | £7,500 |
| Ground-source heat pump (incl. water-source) | £7,500 |
| Air-to-air heat pump (residential only) | £2,500 |
| Biomass boiler (eligible properties only) | £5,000 |
Most people mean an air-to-water heat pump (the type that feeds your radiators and hot water) when they say "air-source", and that's the £7,500 figure.
A lower £2,500 grant covers air-to-air heat pumps in residential properties — these warm the air directly and don't heat your water, so they're a different product. The grant is a contribution, not the full cost. Figures here are indicative ranges for guidance, last checked 2026 — not a quote.
Higher grant for off-grid oil and LPG homes (from 21 July 2026): the government has confirmed an increased grant of up to £9,000 (a £1,500 uplift on the standard £7,500) for homes off the gas grid that currently heat with oil or LPG and switch to an air-to-water or ground-source heat pump.
It does not apply to air-to-air heat pumps or biomass. Date and figures verified against GOV.UK and last checked 2026 — always confirm the current amount before you commit, as scheme values change.
Who is eligible?
Eligibility is checked by your installer before you commit, but the main conditions are:
- The property is in England or Wales (Scotland runs its own separate schemes — see below).
- You own the property — this includes owner-occupiers, private landlords, second homes and some small non-domestic buildings.
- You are replacing a fossil-fuel system (gas, oil, LPG or electric). The scheme is about decarbonising existing heating, not fitting a second system.
- The new system is installed by an MCS-certified contractor and commissioned within the scheme's deadline (currently within 120 days of the grant application).
What about the EPC and insulation?
This is the part that has changed, so it's worth being clear. Under the original BUS rules you needed a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity-wall insulation before a grant could be issued.
The rules have since been relaxed: that insulation bar has been removed, so an outstanding loft or cavity-wall recommendation no longer automatically blocks a grant.
A valid EPC (generated within the last 10 years) is still useful and a sensible starting point — broadly, a property at EPC band D or above is generally taken to indicate sufficient insulation for a heat pump to perform well.
Because the detail here has moved, confirm the current EPC and insulation position with your installer and against GOV.UK before you commit.
Either way, a heat pump performs best in a reasonably well-insulated home, so it's still worth discussing loft and cavity-wall insulation with your installer as part of the system design.
When you can't get the grant
Some situations are excluded. You generally cannot claim a BUS grant for:
- Most new-build properties (a finished new build with a fossil-fuel boiler already fitted may be an exception — check with your installer).
- Social housing.
- A property that has already received government funding or support for a heat pump or biomass boiler.
- Replacing an existing low-carbon system — the scheme funds moving off fossil fuels, so swapping one heat pump for another isn't covered.
Is it worth it after the grant? Indicative costs
The grant only answers half the question — what matters is what you pay after it's applied, and what the system costs to run. The figures below are indicative and last checked 2026; they are for guidance only, not a quote.
| Air-source heat pump | Indicative figure (last checked 2026) |
|---|---|
| Typical installed cost (before grant) | roughly £8,000–£14,000 (varies widely by property) |
| Typical cost to you after the £7,500 grant and 0% VAT | roughly £1,000–£6,500, depending on the work needed |
The wide range reflects how much the job varies: a larger home, bigger radiators, new pipework or a hot-water cylinder all push the cost up.
On running costs, the Energy Saving Trust's position is that a heat pump can cost slightly more to run than a new gas boiler today, because electricity is currently around four times the unit price of gas — but because heat pumps are far more efficient (delivering several units of heat per unit of electricity), the gap narrows in a well-insulated home and as the relative price of electricity changes.
Whether a heat pump saves you money depends on the system you're replacing, your insulation and your tariff, so treat these as ballpark figures and get a proper MCS assessment.
How the grant is applied (via an MCS installer)
You don't apply for the Boiler Upgrade Scheme yourself. Instead:
- Choose an installer who is MCS certified (the Microgeneration Certification Scheme covers heat pumps and biomass).
- The installer confirms your property is eligible and applies for the grant on your behalf.
- The grant value is deducted from your quote, so you pay the reduced price.
- The installer claims the grant back from the scheme administrator (Ofgem) after the work is done.
Because the installer handles the paperwork, it's worth getting more than one MCS-certified quote and comparing the price after the grant, not just the headline figure.
Gas-safety note: removing an old gas boiler and disconnecting it from the gas supply is gas work and must be done by a Gas Safe registered engineer (check the engineer on the Gas Safe Register).
"CORGI" was the old gas registration body but it was replaced by Gas Safe in 2009 — always use Gas Safe today. The heat pump itself is installed by your MCS contractor.
How it differs from replacing a gas boiler
If your existing gas boiler has simply failed and you want another gas boiler, the Boiler Upgrade Scheme does not apply — there is no government grant for a straight gas-boiler replacement.
In that situation you're looking at standard installation costs, and the decision is really about whether to repair, replace like-for-like, or switch to a heat pump and claim the grant.
A few practical differences to weigh up:
- Cost timing: a new gas combi or system boiler usually has a lower upfront cost than a heat pump even after the grant, but a heat pump can have lower running costs in a well-insulated home.
- Disruption: heat pumps often need larger radiators or pipework changes and an outdoor unit; a gas-boiler swap is usually quicker.
- Suitability: not every home suits a heat pump yet, which is exactly why the EPC and insulation checks exist.
For ballpark numbers on the gas-boiler route, see our guide to boiler replacement cost.
What about Scotland and Northern Ireland?
The Boiler Upgrade Scheme covers England and Wales only. Don't assume the £7,500 figure applies UK-wide.
Scotland runs its own support through the Home Energy Scotland Grant and Loan.
Indicative figures (last checked 2026): a heat-pump grant of up to £7,500, plus an optional interest-free loan of up to £7,500 on top to help cover the rest of the cost. Homes in eligible rural and island areas can claim a £1,500 rural uplift, taking the heat-pump grant to £9,000.
The rules and amounts differ from BUS, so check the Scottish scheme directly via Home Energy Scotland before relying on these figures.
Northern Ireland has separate arrangements again — check the relevant Northern Ireland support directly, as it does not mirror either the BUS or the Scottish scheme.
Does this affect my boiler cover?
If you switch to a heat pump, a traditional gas boiler cover policy may no longer be the right product — some insurers offer dedicated heat-pump or renewable-heating cover instead. If you're staying on gas for now, it's still worth checking what a policy includes.
Our explainer on what boiler cover is and the question of whether boiler cover is worth it can help you decide.
Staying on gas for now?
If a heat pump isn't right for your home yet, compare boiler cover so a breakdown doesn't catch you out this winter.
Compare boiler coverFrequently asked questions
Can I get a Boiler Upgrade Scheme grant for a new gas boiler?
No. The scheme only funds low-carbon heating — heat pumps and, in some cases, biomass. A replacement gas boiler does not qualify for any BUS grant.
How much is the grant in 2026?
£7,500 towards an air-to-water or ground-source heat pump, £2,500 towards an air-to-air heat pump (residential), or £5,000 towards an eligible biomass boiler. From 21 July 2026, off-gas-grid homes replacing oil or LPG can get up to £9,000 towards an air-to-water or ground-source heat pump.
These are indicative figures, last checked 2026, applied as a discount on your installer's quote — confirm current amounts before committing.
Do I apply for the grant myself?
No — an MCS-certified installer applies on your behalf and deducts the grant from your quote. They then claim it back from the scheme administrator.
Why does my EPC matter?
The original rules required a valid EPC with no outstanding loft or cavity-wall insulation recommendations, but that insulation bar has since been removed, so it no longer automatically blocks a grant.
A valid EPC (within the last 10 years) is still a useful guide — broadly band D or above suggests sufficient insulation — and a heat pump works best in a well-insulated home, so it's worth discussing insulation with your installer. Confirm the current position with your installer and GOV.UK.
Does the Boiler Upgrade Scheme cover Scotland?
No. BUS covers England and Wales. Scotland has separate support via Home Energy Scotland, and Northern Ireland has its own arrangements.
Who removes my old gas boiler?
Disconnecting an old gas boiler is gas work and must be done by a Gas Safe registered engineer. Always check the engineer is listed on the Gas Safe Register before any work begins.
This article is general information, not financial or technical advice. Grant amounts and eligibility rules can change — check the current scheme details before committing. Boiler Cover UK compares a selected panel of providers, not the whole market, and may earn commission.