Boiler Upgrade Scheme 2026: Complete Application Guide

It's not means-tested. You don't need to be on benefits. You just need to own a property in England or Wales and be replacing a fossil fuel heating system. Ofgem doesn't publish a timescale; a couple of months from first quote to working heat pump is our rough guide. There's a budget of £400 million for 2026/27 and funding confirmed to 2029/30, so in our view the bottleneck is finding a good installer, not the money.

What's changed, on DESNZ's own list: 8 May 2024, the requirement to clear outstanding loft and cavity wall insulation recommendations on your EPC was removed. 28 April 2026, the requirement for a valid EPC was removed, air-to-air heat pumps were added at £2,500 (though nobody can claim that yet, below), and installers were required to deduct the grant from your upfront cost. 21 July 2026, the £9,000 grant opened for off-gas-grid homes heated by oil or LPG.

BUS by the Numbers

The scheme opened to voucher applications in May 2022. These are the latest official DESNZ statistics, covering everything up to the end of August 2026 (the August 2026 release, published 24 September 2026):

August 2026 was the second-busiest month the scheme has had, with 7,486 applications after July's record 8,150, and 120% up on August 2025. The £9,000 off-grid grant is clearly doing some of that work: it drew 5,351 applications in July and August, 34% of the total. Of the 93,364 installations paid for so far, 55% replaced gas, 17% oil and 13% went into homes that had no heating system at all (gov.uk lets self-builds claim, though most other new builds can't).

What the Scheme Covers

The air source and ground source grants were increased from £5,000 and £6,000 respectively to £7,500 on 23 October 2023. Air-to-air heat pumps were added on 28 April 2026, but nobody can claim that grant yet: in September 2026 MCS said no installers were certified for air-to-air, and DESNZ had issued no vouchers by its August 2026 statistics. Ofgem's guidance also says the heat pump must be able to meet all of the home's space heating, so a unit in one room won't qualify. They're much cheaper to install (the Energy Saving Trust puts a three-bed semi at about £3,700) but don't heat water. Our air-to-air guide covers when to wait for the grant.

DESNZ's published objectives for the scheme mention heat batteries alongside heat pumps, but gov.uk lists no heat battery grant today, so don't plan around a figure for it. The scheme also does not cover hybrid systems (gas boiler plus heat pump), and you can't use it to replace an existing low carbon heating system. Solar panels, battery storage and district heating aren't on the list either. There are capacity limits too: 45kWth for a single system, 70kWth where heat pumps are combined, 300kWth for shared ground loops. For solar, see our solar panel costs guide. Solar carries a VAT break rather than a direct grant, and that break runs out on 31 March 2027.

Check If You Qualify

Use our eligibility checker to see which grants you might qualify for. It covers BUS and the other main schemes in England, Scotland and Wales:

Eligibility: The Full Details

BUS has a much shorter eligibility checklist than means-tested schemes like ECO4. Here's what you need:

You Must

• Own the property, including second homes, buy-to-lets, and business premises
• Be in England or Wales. Scotland has the Home Energy Scotland Grant and Loan instead (£7,500 grant, rising to £9,000 with the rural and island uplift, plus an optional interest-free loan of up to £7,500). Northern Ireland has no BUS equivalent, and its Boiler Replacement Scheme has closed.
• Be replacing fossil fuel heating: gov.uk counts oil, gas, electric and LPG. You can't use BUS to replace an existing low carbon system such as a heat pump.
• That's it. You do not need an EPC. The requirement for a valid EPC was removed on 28 April 2026, and gov.uk's eligibility page no longer mentions an EPC at all. It says in as many words that you're still eligible if you've already had funding to make your property more energy efficient, for example by insulating it.

You Can't Apply If

• Your property is a new build (most are excluded; see the FAQ below for exceptions)
• It's social housing
• You've already received government funding for a heat pump or biomass boiler at this property

Insulation Requirements: The Rule That No Longer Exists

Before May 2024, your EPC couldn't have outstanding recommendations for loft or cavity wall insulation. DESNZ removed that requirement on 8 May 2024. You no longer need to address insulation recommendations before applying, and since 28 April 2026 you don't need a valid EPC at all.

That said, insulation still matters practically. A heat pump works most efficiently in a well-insulated home, and you'll pay less to run it. If the loft is bare or the cavities are empty, fix that first, especially if you'd qualify for free insulation through ECO4 (Great Britain, running until 31 December 2026) or the Warm Homes: Local Grant (England). It's just no longer a BUS eligibility requirement. The Great British Insulation Scheme closed on 31 March 2026, so anyone offering you "GBIS funding" is either confused or not to be trusted.

Biomass Boiler: Extra Requirements

Biomass boilers have tighter rules than heat pumps. You must be off the gas grid, in a rural location, and the boiler must have an emissions certificate. Self-build properties aren't eligible for biomass. Most people applying under BUS are going for heat pumps; biomass is the niche exception.

What You'll Actually Pay

Here's what a typical air source heat pump installation costs before and after the grant, on our estimates built around the DESNZ figures:

Want a more detailed estimate? Use our calculator. Pick your technology, home size, and any extras to see a personalised ballpark:

Three Real Cost Examples

These use the DESNZ median reported cost of real installs for each heat pump size in 2025/26, before and after the grant:

At every size the median install costs more than the grant, so expect to pay something. The £9,000 off-grid grant narrows the gap most: a larger oil-heated home ends up paying about the same as a gas-heated semi. Smaller, simpler jobs do come in under the median, but half of installs cost more.

The Application Process: Step by Step

Here's the full journey from start to finish. Ofgem doesn't publish timescales, so the durations are our rough guide.

How the Grant Payment Works

This confuses a lot of people, so let's be completely clear:

• You do not receive £7,500 in your bank account
• Your installer deducts the grant from your invoice; it's shown on your quotation and invoice
• You pay the installer only the balance
• Ofgem pays the installer directly

Example: installer quotes £12,200, about the median for a typical 6 to 8kW install. Your invoice shows £12,200 minus £7,500 BUS grant = £4,700 to pay. You pay £4,700. Ofgem sends £7,500 to the installer. No cash advance from you, no rebate to wait for. Your one job is to confirm to Ofgem, when it asks, that the installer is applying on your behalf.

Common Rejection Reasons (and How to Avoid Them)

Here's what can go wrong with an application, and how to prevent it:

If something goes wrong, ask your installer exactly what Ofgem said. And you don't need a valid EPC: if your home has one, your installer passes on its details (or an expired one's), so don't let anyone tell you to go and buy one.

Budget and Availability: Is the Money Running Out?

Not on current numbers. The 2026/27 budget is £400 million, and over £560 million was paid out across the first four years of the scheme. Ofgem considers applications in the order they're received.

Funding is confirmed through to 2029/30, committed in the Warm Homes Plan in January 2026. The plan allocates £2,687 million to the scheme over those five years and aims for over 450,000 heat pump installations a year across the UK by 2030. The risk of grant amounts changing is real (they've changed several times since 2022), but in our view the risk of running out of money before you can apply is low.

The real constraint is finding a good installer who can fit you in. So time the heat pump to your boiler, not to a funding deadline, and start looking for an installer a few months before you need one.

BUS vs Other Grants: Which Should You Use?

BUS isn't the only game in town. Here's how it compares to the other main schemes:

The smart strategy: if you're on qualifying benefits, check ECO4 first, as it can help with insulation and heating, including a heat pump, and it shuts on 31 December 2026. In England, check the Warm Homes: Local Grant too, because it uses an income test rather than a benefits test. If neither applies, BUS is your route. Welsh homeowners can use both BUS and Nest; Scottish homeowners use Home Energy Scotland instead of BUS.

Northern Ireland is the gap. BUS doesn't apply there, ECO doesn't either, and the NI Boiler Replacement Scheme has closed. The one heat pump route is NISEP: its Green Heat NI and Toasty Homes Heat Pump and Solar schemes fully fund an air source heat pump for owner-occupiers with a gross household income under £28,000 (single) or £35,000 (couple or family) who are replacing old or no heating. See our Northern Ireland heat pump grants page for who to contact.

Can I Get a Free Boiler?

Not from the Boiler Upgrade Scheme. BUS only pays towards a heat pump or biomass boiler that replaces a fossil fuel system, so it never funds a gas or oil boiler. Help with a new boiler comes from these instead:

There's no free boiler for age alone: pensioners get into ECO4 through Pension Guarantee Credit or Pension Savings Credit, like anyone else on the list. If someone calls offering a "free boiler grant", gov.uk's advice for ECO offers is to check with your council or the energy company they say they represent. Our ECO4 guide has the full rules and a checker.

Combining BUS with Other Support

You can't double-fund the heat pump itself, but you can stack BUS with other forms of support:

• ECO4 or the Warm Homes: Local Grant for insulation: get the fabric work funded first, then apply for BUS for the heat pump. This is the most efficient sequence, and gov.uk confirms prior energy efficiency funding doesn't disqualify you.
• 0% VAT: installing a heat pump is zero-rated for VAT, and it's already in your quote. Watch the date though: the zero rate ends on 31 March 2027 and reverts to 5% from 1 April 2027, so an installation that slips into the new tax year costs more.
• Mortgage lender cashback: for qualifying mortgage customers, Halifax and Lloyds pay £2,000 and Barclays £1,000 towards a heat pump. Terms change, so check your own lender's before you count on it.
• Smart Export Guarantee: if you add solar panels, you can earn money exporting excess electricity. BUS and SEG are fully compatible. See our solar panel costs guide.
• Heat pump electricity tariffs: tariffs like Cosy Octopus give you cheap windows through the day in exchange for an expensive late-afternoon peak. Cosy is open to any home with a heat pump, whoever installed it.

What Happened to the Home Upgrade Grant (HUG2)?

It's closed. HUG2 was an England-only, council-administered scheme for homes with no mains gas boiler. gov.uk's page now says "The Home Upgrade Grant is now closed" and points you to the Warm Homes: Local Grant instead: your council arranges the survey and pays for the work it agrees with you, with no cash cap published per household.

After Installation: What to Do Next

Your heat pump is in. Now what? The first few weeks matter:

Optimise Your Settings

Heat pumps run at lower flow temperatures than gas boilers (British Gas gives 35 to 55C against 70 to 80C). Your installer should set this during commissioning, but check it hasn't been bumped up. Lower flow temperatures mean higher efficiency and lower bills. If your house feels cold, the Energy Saving Trust's advice is to run the heat pump for longer at a steady temperature rather than turning the flow temperature up.

Register for a Heat Pump Tariff

You're now eligible for time-of-use electricity tariffs designed for heat pump owners. Cosy Octopus, for example, gives you three cheap windows a day (04:00 to 07:00, 13:00 to 16:00 and 22:00 to 00:00) at 51% below the regional day rate, in exchange for a peak between 16:00 and 19:00 at 50% above it. Octopus prices it by region rather than at one national rate, so we model heat pump tariffs at a 20p blended rate (our estimate). On that, a typical 3-bed saves £300 to £320 a year against gas, against £130 to £140 on the standard rate. What you actually save depends on your region and how much of your heating you can shift into the cheap windows.

Consider Solar Panels

A heat pump with solar panels is, in our view, the strongest setup for a UK home. Solar generates electricity during the day, your heat pump uses it, and you export any surplus via the Smart Export Guarantee. See our solar panel costs guide and solar + heat pump combo guide for details.

Monitor Your Energy Use

Install a home energy monitor or use your smart meter's in-home display to track consumption. Monitoring helps you spot issues early, such as the heat pump running at times it shouldn't, or the backup immersion heater switching on unnecessarily.

Keep Your MCS Certificate Safe

It's the record that the installation meets the MCS standard, so keep it with your house documents.

Is the Boiler Upgrade Scheme Worth It?

On oil or LPG, emphatically yes. On mains gas, it's yes when the boiler is due for replacing anyway, especially on a heat pump tariff. With a healthy gas boiler, we'd wait.

The sums use a typical 3-bed (DESNZ's median and mean gas use for 3 bedrooms), the Ofgem price cap and a heat pump at a SCOP of 3.5. Against a 90% gas boiler, the heat pump saves £130 to £140 a year on a standard tariff and £300 to £320 on a heat pump tariff (20p, our estimate). With the £7,500 grant, the median 6 to 8kW install costs £4,700:

Those are fuel savings only, with prices held flat. An air source heat pump typically lasts 15 to 20 years, so replacing a working boiler early doesn't pay back on a standard tariff, and only just does on a heat pump tariff. The break-even SCOP against gas is 2.97 on a standard tariff, which is why the design matters: a well-designed system at a low flow temperature beats it comfortably, and one running hot might not. Our are heat pumps worth it guide and heat pump vs boiler calculator go further.

Against oil it's a different conversation. A typical 3-bed on oil saves about £550 to £600 a year on a standard tariff, and with the £9,000 off-grid grant the middle half of installs cost £2,100 to £6,600, so roughly 4 to 12 years to pay back, even if the oil boiler still works. If that's you, this is close to a no-brainer, and the extra £1,500 ends in March 2027.

We don't forecast prices. The October 2026 cap period is unusually good for heat pumps because domestic electricity lost its VAT for the winter while gas went up 8.7%, and that VAT break ends on 31 March 2027.

Next Steps

1. Time it: with a working gas boiler, plan the heat pump for when the boiler is due. On oil or LPG with no mains gas, don't wait: the extra £1,500 ends in March 2027
2. Don't buy an EPC. You don't need one for BUS and haven't since April 2026. If you happen to have one it's a useful list of what's worth doing, but it isn't a requirement, so don't pay for one just for this
3. Check for free insulation: see if you qualify for ECO4 (Great Britain, closes 31 December 2026) or the Warm Homes: Local Grant (England) before spending anything on insulation
4. Get 3 MCS installer quotes: check credentials at mcscertified.com, and always ask for the heat loss calculation
5. Compare quotes carefully: the cheapest isn't always the best. Look at the specification, not just the price
6. Confirm BUS handling: make sure your chosen installer will submit the Ofgem application on your behalf
7. Model your savings: use our heat pump savings calculator to estimate running costs and payback

For the full context on heat pump installation (costs, what to expect, and how to choose a system), see our air source heat pump costs guide. For the bigger picture on making your home energy-efficient, start with our complete home energy efficiency guide.