The Boiler Upgrade Scheme grant for eligible off-gas grid properties in England and Wales increased from £7,500 to £9,000 on 21 July 2026, a rise of 20%1. The Department for Energy Security and Net Zero said the uplift is intended to help rural households move from heating oil to a heat pump1. The grant categories and values were confirmed in a notice of approved grant categories and values, effective from that date2.
The £9,000 value applies to an air-to-water or ground source heat pump in an off-gas grid property replacing a heating system fuelled by oil or liquefied petroleum gas (LPG)2. Other categories are unchanged: £7,500 for an air-to-water or ground source heat pump in a property that is not off the gas grid, £2,500 for an air-to-air heat pump, and £5,000 for a biomass boiler in limited circumstances2. Ofgem states the uplifted grant value for off-gas grid properties will be in place until 31 March 20273.
| Grant category | Value |
|---|---|
| Air-to-water or ground source heat pump, off-gas grid, replacing oil or LPG | £9,000 |
| Air-to-water or ground source heat pump, not off-gas grid | £7,500 |
| Air-to-air heat pump | £2,500 |
| Biomass boiler (limited circumstances) | £5,000 |
The government said leaflets would be delivered to 200,000 eligible homes in England and Wales with information on how to claim the extra funding1. The scheme is installer-led: the installer submits a voucher application on behalf of the property owner, and the grant is paid to the installer, with the property owner paying the total cost less the grant4. Installers are required to pass on the full value of the grant as an upfront discount3. Ofgem guidance states the uplifted values apply to applications properly made on or after 21 July 20265.
"From 21 July the Boiler Upgrade Scheme grant is being increased by 20%, from £7,500 to £9,000, to help rural households make the move from heating oil to a heat pump."
The Heat Pump Association's chief executive, Charlotte Lee, said the £1,500 uplift would make the transition "significantly more affordable for the thousands of oil-heated homes", noting many such households have faced price uncertainty without the protection of the energy price cap1. National Energy Action's head of policy and public affairs, Matt Copeland, said the real test would be whether the support reaches those most at risk1.
Why it matters for households
Homes off the gas grid have no access to the energy price cap, so their heating costs track oil and LPG prices directly1. A larger grant reduces the upfront capital gap between a fossil fuel boiler replacement and a heat pump, which is the point at which most households decide4. The grant is deducted from the installation cost by the installer rather than paid to the household afterwards3. Eligibility depends on the property being off the gas grid and the heating system being replaced being oil or LPG2. The uplifted value is time-limited to 31 March 20273, and vouchers are issued first come, first served until the annual budget cap is reached4. The scheme budget for 2026/27 is £400 million4.
What happens next
The uplifted £9,000 value runs until 31 March 20273. The final date on which Ofgem can issue vouchers is 31 December 20293. Funding for further years up to 2029/30 was confirmed through the Warm Homes Plan in January 20264. The next set of monthly Boiler Upgrade Scheme statistics is due for publication on 24 September 20264.
Sources5 cited
- Thousands of homes will be eligible for £9,000 off a heat pump - GOV.UK, gov.uk
- Notice of approved grant categories and values for the Boiler Upgrade Scheme - GOV.UK, gov.uk
- Boiler Upgrade Scheme Installer Guidance V5.1, ofgem.gov.uk
- [](https://assets.publishing.service.gov.uk/media/6a855be254bcee010d5144fa/Boiler_Upgrade_Scheme_BUS_Statistics_July_2026.xlsx), assets.publishing.service.gov.uk
- Boiler Upgrade Scheme: Guidance for Property Owners | Ofgem, ofgem.gov.uk