The Boiler Upgrade Scheme (BUS) grant for homes heated by oil or liquefied petroleum gas (LPG) has been increased from £7,500 to £9,000, £1,500 more than the standard rate1. The uplift was announced in April 2026 and is expected to take effect in July 2026, subject to a formal Grant Change Notice on GOV.UK; until that notice is published, the £7,500 rate applies to all properties1. The increase applies to homes in England and Wales currently heated using oil or LPG2.
The Boiler Upgrade Scheme is the primary grant for replacing a fossil fuel heating system with a heat pump in England and Wales, and it is installer-led, meaning an MCS-certified installer applies on the householder's behalf1. Grant amounts by property type are set out as follows1:
| Property type | Grant amount |
|---|---|
| Gas | £7,500 |
| Oil and LPG | £9,000 |
The government's stated reason for targeting oil and LPG homes is that these fuels have no equivalent of a price cap, so households absorb the full impact of global market spikes1. One supplier account states that in the week between 26 February and 5 March 2026 heating oil prices jumped by over 80%, with 500 litres rising from around £307 to over £550 and 1,000 litres reaching as much as £9853. The same account puts typical annual heating costs for an oil boiler at around £1,600 to £2,300, against £850 to £1,250 for an air source heat pump3. A separate supplier states an air source heat pump typically costs around £11,0002, while another puts a typical installation at between £10,000 and £15,000 before any grant1.
"The £9,000 uplift for oil and LPG properties was announced in April 2026 and is expected to take effect in July 2026, subject to a formal Grant Change Notice on GOV.UK."
Not all sources agree on timing. One supplier states the £9,000 grant "applies to eligible homes in England and Wales right now"3, while another describes it as "now available"2. Heat Geek states the current £7,500 rate applies to all properties until the Grant Change Notice is published1. Scottish homeowners are not covered by BUS and instead apply through Home Energy Scotland, which offers grants of up to £7,500 plus interest-free loans of up to £7,500, a combined £15,0001; one supplier puts potential Scottish funding at up to £16,5003. The domestic Renewable Heat Incentive, which BUS replaced, closed to new applicants on 31 March 20221.
Why it matters for households
Homes off the gas grid have no price cap protecting them from oil and LPG market movements, so their heating costs can change sharply between refills1. Moving heating onto electricity shifts the running cost onto a capped tariff, and a heat pump uses around 3.5 times less energy than a gas boiler to produce the same heat4. For a household weighing up a switch, the grant reduces the upfront gap, but it does not cover the full cost: a typical installation runs to between £10,000 and £15,000 before any grant1, leaving a balance that varies with radiator, pipework and control upgrades1. Running costs depend heavily on system design, with a system running at a coefficient of performance of 4 costing half as much to run as one running at 21. BUS cannot be stacked with certain other government funding1.
What happens next
The £9,000 rate is expected to take effect in July 2026, subject to a formal Grant Change Notice on GOV.UK1. BUS voucher applications can be submitted up to 120 days after an installation is commissioned, so a heat pump commissioned in May or June 2026 may fall within the window for the higher rate once it goes live; householders already holding a voucher for an uninstalled system can withdraw and reapply at the higher rate1. The exact change date has not been confirmed.
Sources4 cited
- Heat Pump Grant: what's available for you? | Heat Geek, heatgeek.com
- £9k Heat Pump Grants for Oil Heated Homes | Wiser, wiser.draytoncontrols.co.uk
- Heating Oil Prices UK: How to Protect Your Home From Rising Costs, airahome.com
- How to respond to the energy crisis | Nesta, nesta.org.uk