What the grant is
The Boiler Upgrade Scheme (BUS) is a government grant in England and Wales that takes £7,500 off the cost of an air source or ground source heat pump, as of October 2026. You do not apply yourself. Your MCS-certified installer applies, and the grant comes off your bill. With it, a typical air source install falls from £11,000 to £14,500 to about £3,500 to £7,000 (typical prices, checked October 2026).
The scheme is run by Ofgem. Rules and funding can change, so always check the current position on gov.uk before you commit.
Who qualifies
| Requirement | What it means in practice |
|---|---|
| Home in England or Wales | Scotland and Northern Ireland have separate support |
| You own the property | Homeowners, small landlords and some small businesses can apply |
| Replacing fossil fuel heating | Gas, oil, LPG or direct electric heating being removed |
| Valid Energy Performance Certificate | An EPC issued within the last 10 years, with no insulation requirement |
| MCS-certified installer | The installer must be certified for the technology they fit |
| Heat pump only | Hybrid systems that keep a fossil fuel boiler are not covered |
If you do not have an EPC, or it has expired, you can book a domestic energy assessor to produce one. Look up any existing certificate on the government EPC register through gov.uk.
Homes the scheme usually does not cover
A few situations fall outside the scheme, or need checking carefully:
- Most new builds. New homes are generally excluded, though custom self-builds have been treated differently. Check the current rules if you are building.
- Social housing. Homes owned by councils and housing associations are not covered.
- Homes that already had government funding for a heat pump. You cannot normally claim twice for the same property.
- Very large systems. The scheme has a size limit, which most ordinary homes are well within. Your installer will confirm.
If any of these might apply to you, raise it at the survey stage rather than after you have signed.
No insulation requirement
Earlier versions of the scheme linked eligibility to loft and cavity wall insulation. As of October 2026 there is no insulation requirement. You need a valid EPC, but it does not have to be clear of insulation recommendations.
That said, insulation still matters to you. A home that loses less heat needs a smaller heat pump, fewer radiator upgrades and less electricity. If cheap fixes like topping up the loft are available, they are usually worth doing first. See ECO4 and insulation grants for help with the cost.
How the claim works
- Survey and quote. An MCS-certified installer surveys the house and gives you a quote showing the price before and after the grant.
- Installer applies. They submit the application to Ofgem with your details and EPC.
- You confirm. Ofgem contacts you to confirm you agreed to the installer applying for you. Reply promptly.
- Voucher issued. Once approved, a voucher is issued with a validity period. Ask your installer how long yours lasts.
- Installation. The heat pump goes in and is commissioned.
- Installer redeems. The installer claims the £7,500 from Ofgem. You pay only the balance on your quote.
Mistakes that can cost you the grant
- Using an installer without the right MCS certification. Check on the MCS register before signing.
- An expired EPC. Check the date before the application goes in.
- Choosing a hybrid. Keeping a gas or oil boiler alongside the heat pump rules out the grant.
- Keeping the old system in use. The heat pump must replace your fossil fuel heating, not sit beside it.
- Missing the confirmation from Ofgem. If you do not respond, the application can stall.
Never pay a deposit to someone who says they will “apply for the grant” but cannot show MCS certification. Only certified installers can claim it.
What the grant does not do
It does not guarantee lower bills. That depends on how well the system is designed and your electricity to gas price ratio. Read heat pump running costs vs a gas boiler to work out your own numbers.
It does not cover everything. Extra radiators, pipework or electrical work sit in the quote, and the £7,500 comes off the total. Our installation cost guide shows what usually goes into that total.
Wales and the rest of the UK
The scheme applies in Wales just as in England. Welsh households may also find other support, set out in heat pump grants in Wales. In Scotland, see Home Energy Scotland heat pump grants. In Northern Ireland, see heating grants in Northern Ireland.
City Boiler connects you with independent MCS-certified installers who handle the grant application for you.
Common questions
How much is the Boiler Upgrade Scheme grant?
£7,500 off an air source or ground source heat pump, as of October 2026. It is taken off your bill by your installer, so you pay the balance. Check the current rules on gov.uk before you commit, because the scheme can change.
Do I need to insulate my home to get the grant?
No. There is no insulation requirement for the Boiler Upgrade Scheme as of October 2026. You do need a valid Energy Performance Certificate. Insulating can still lower your running costs and the size of heat pump you need.
Do I apply for the grant myself?
No. Your MCS-certified installer applies on your behalf and deducts the grant from your quote. You confirm the application when Ofgem, which runs the scheme, contacts you.
Is the grant available in Scotland or Northern Ireland?
No. The Boiler Upgrade Scheme covers England and Wales only. In Scotland, Home Energy Scotland runs its own grant and loan. In Northern Ireland, check NI Energy Advice for any current support.
Do I have to pay the grant back if I move?
The scheme is a grant, not a loan, so there is nothing to repay in the normal course of things. As with any scheme, read the terms your installer gives you and check gov.uk for the current rules.