Heat pump grant UK 2026: £9,000 for oil & LPG boiler homes

Key takeaways

• The UK Boiler Upgrade Scheme heat pump grant has increased to £9,000 for homes using oil or LPG (expected to come into effect in July 2026)
• The grant is applied upfront through your installer, reducing the cost immediately.
• With rising fuel costs and changing support schemes, acting now gives you more certainty on price and timing.

If you heat your home with oil or LPG, there’s a new opportunity to switch to a heat pump for less.

From July 2026, the UK government is expected to increase the Boiler Upgrade Scheme grant to £9,000 for homes using oil or LPG. That’s a £1,500 increase – and would be the highest level of support available in England and Wales for switching to low-carbon heating.

Here’s what’s set to change, who qualifies, and what it means for your home.

The heat pump grant for oil and LPG homes just got bigger

The Boiler Upgrade Scheme (BUS) is designed to reduce the upfront cost of installing a heat pump.

Previously, the grant offered £7,500 for most homes replacing an oil, LPG or gas boiler. Now, homes heated by oil or LPG will receive up to £9,000 toward a heat pump installation.

This change is aimed at households that are often hardest hit by rising fuel costs, particularly in rural areas where mains gas isn’t available. It mirrors the £1,500 rural uplift available in Scotland through the Home Energy Scotland Grant and Loan scheme.

For many of these homes, switching to a heat pump has always made sense environmentally. Now, it’s going to become more financially accessible, too.

What the £9,000 Boiler Upgrade Scheme grant covers

The grant is applied directly to the cost of installing an air source heat pump.

You don’t need to claim the money yourself. Instead:

• your installer applies for the grant
• it’s deducted from your total installation cost
• you pay the reduced amount

And eligibility is pretty simple. All you’ll need is: 

• a property in England or Wales
• a valid EPC (Energy Performance Certificate) 
• an installation carried out by an MCS-certified installer

Not sure if you’ll qualify? Talk to one of our clean energy experts on 0330 828 1111, and we’ll let you know in an instant. 

Who benefits most from the increased heat pump grant?

This increase is specifically designed for homes currently using heating oil or LPG (liquefied petroleum gas).

There are around 1.7 million homes in England and Wales in this category – many of them in rural areas without access to mains gas.

These households often face higher and more volatile fuel costs, with fewer alternatives to fossil fuels and greater exposure to global price fluctuations. For them, the £9,000 grant will significantly reduce the barrier to switching.

Why this matters now

Government support schemes don’t stay the same forever.

The increase to £9,000 reflects a broader push to accelerate the transition away from fossil fuel heating – particularly in off-grid homes.

At the same time, installation demand is rising, grant budgets are finite, and eligibility rules can change. Acting while support is available gives you more certainty – both on cost and timing.

What this means for the cost of switching to a heat pump

A heat pump is a long-term investment – typically lasting 15 to 20 years.

The £9,000 grant will reduce the upfront cost significantly, but it’s only part of the picture.

When you switch from oil or LPG to a heat pump, you’re also moving away from delivered fuels with fluctuating prices and ongoing reliance on fossil fuels. Instead, you’re switching to a system that runs on electricity, delivering steady, low-temperature heating throughout your home.

Heat pumps are already significantly more efficient than traditional boilers, producing three to four units of heat for every unit of electricity used.

In the UK, one of the reasons savings haven’t always been higher is because electricity prices have historically been tied to gas. But that’s starting to change.

We explain this in more detail in our guide to why electricity prices are linked to gas, but in short: as the UK moves toward cleaner and more stable electricity pricing, the long-term cost of running a heat pump is expected to become increasingly competitive.

For homes using oil or LPG – where fuel costs are often even higher and more volatile than gas – that shift makes an even bigger difference.

Ready to claim your heat pump grant?

If your home is heated by oil or LPG, you could be eligible for £9,000 toward a heat pump installation very soon.

A free home energy assessment with Aira will show you:

• how a heat pump would work in your home
• what your installation could look like
• and how much the grant would reduce your upfront cost
• how much you’ll save vs your old boiler

From there, you can decide whether switching now makes sense for you.