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Last updated 14 July 2026 · reviewed after the 21 July uplift announcement

The Boiler Upgrade Scheme, explained in plain English

The Boiler Upgrade Scheme (BUS) is a government grant of up to £9,000 towards replacing an oil, LPG, electric or coal heating system with a heat pump. This guide covers who qualifies, what it pays for, and how the money reaches you — with a source for every claim.

12-minute read · written for homeowners, not heating engineers

What the grant is

The Boiler Upgrade Scheme is run by the Department for Energy Security and Net Zero and administered by Ofgem. It gives homeowners in England and Wales a fixed grant towards a heat pump or, in limited cases, a biomass boiler (gov.uk: Apply for the Boiler Upgrade Scheme).

£9,000

for homes currently heated by oil or LPG — 21 July 2026 to 31 March 2027

£7,500

for homes on other eligible fuels, such as electric or coal heating

The higher oil and LPG rate is temporary and reviewed at the end of March 2027 (Ofgem: Boiler Upgrade Scheme). You never receive the money yourself — it goes to your installer, who takes it off your quote before you pay.

Who qualifies

You’re very likely eligible if all of these are true:

  • You own the property (including with a mortgage), in England or Wales
  • You're replacing an oil, LPG, electric or coal system — not mains gas in most cases
  • The new system is fitted by an MCS-certified installer

There is no income test and nothing to repay. Since 2024 there is no requirement to install loft or cavity insulation first, though your installer may still recommend it (gov.uk: eligibility rules). Second homes and most new-builds don’t qualify.

What you’ll actually pay

Ofgem’s scheme data puts the median cost of an air source heat pump installation at around £13,000 before the grant (Ofgem annual report, 2025). For an oil or LPG home at the £9,000 rate, that means a typical bill of £3,500 to £6,000 — often comparable to a like-for-like oil boiler replacement.

Running costs matter as much as the install. A heat pump delivers roughly 3 units of heat per unit of electricity; Nesta’s April 2026 analysis puts the typical saving at around £650 a year for a medium home switching from oil.

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How the money flows

  1. Your installer applies.Once you accept a quote, your MCS-certified installer applies to Ofgem for a voucher on your behalf. You’ll get an email from Ofgem asking you to confirm they’re acting for you.
  2. The voucher is issued. Vouchers are valid for 3 months for air source heat pumps — long enough for a normal installation.
  3. The grant is deducted. Your quote already shows the price after the grant. You pay the difference; Ofgem pays your installer the rest after the work is commissioned.

Questions worth asking any installer

Whoever quotes you — through Rewarm or not — these five questions separate careful installers from quick ones:

  • Have you done a room-by-room heat-loss calculation, and can I see it?
  • What flow temperature is the system designed for, and which radiators need changing?
  • What's the seasonal efficiency (SCOP) you expect, and at what outdoor temperature?
  • Is the quoted price after the grant, and who applies for the voucher?
  • What does the workmanship warranty cover, separate from the manufacturer's?

Common questions

Can I get the grant if I'm on mains gas?

Yes — gas-heated homes qualify for the £7,500 rate when replacing the gas boiler with a heat pump. The £9,000 uplift is specifically for oil and LPG homes.

Does my house need to be well insulated first?

No — the old rule requiring loft and cavity insulation was removed in 2024. A well-insulated home will still run cheaper, so it's worth doing where practical.

Can I combine it with other schemes?

You can't use BUS twice on the same property or stack it with ECO4 funding for the same measure, but insulation funded separately is fine. Your installer checks this during the voucher application.

What if the £9,000 rate ends before I'm ready?

The rate that applies is the one in force when your installer's voucher is issued, not when the work finishes. The uplift runs to 31 March 2027; a voucher issued before then locks in £9,000.

Written by Rachel Hendra

Head of Homeowner Guidance at Rewarm · 11 years in domestic retrofit, formerly Energy Saving Trust

This guide is general information, not financial advice. Reviewed against Ofgem and gov.uk guidance on 14 July 2026. Spotted something out of date? Tell usand we’ll fix it within a week.