Boiler Upgrade Scheme Grant Rises to £9,000 for Eligible Homeowners

What's New?

The Boiler Upgrade Scheme has already helped thousands of homeowners lower the cost of installing low-carbon heating systems. With the latest announcement, eligible applicants replacing oil or LPG heating can now benefit from increased funding.

Here's a quick overview of the changes:

• Old grant amount: £7,500
• New grant amount: £9,000
• Increase: £1,500
• Applies to: Eligible applications submitted on or after 21 July 2026

The revised funding is available for qualifying properties in England and Wales that currently use oil or LPG as their primary heating source.

Important Information Before You Apply

While the increased funding is welcome news, it's important to understand when it applies. The £9,000 grant is only available for Boiler Upgrade Scheme applications correctly submitted on or after 21 July 2026.

If your Boiler Upgrade Scheme voucher was issued before 21 July 2026, it will remain at the previous value of £7,500, even if your heat pump is installed after the new funding came into effect. If you're unsure which grant applies to your installation, your installer will be able to explain the process and confirm your eligibility.

The Boiler Upgrade Scheme is designed to reduce the upfront cost of installing renewable heating systems such as air source heat pumps.

Rather than homeowners submitting an application themselves, the process is completed by an MCS-certified installer. Once approved, the grant is deducted directly from the installation cost, helping to make low-carbon heating more affordable.

The scheme continues to play an important role in helping homeowners improve energy efficiency while reducing reliance on fossil fuels.

Why Has the Grant Been Increased?

Many homes still rely on heating oil or LPG, particularly in areas that are not connected to the gas network.

By increasing the available funding to £9,000, the Government hopes to encourage more homeowners to replace older heating systems with cleaner alternatives. The additional support helps reduce the upfront investment, making air source heat pumps a more accessible option for eligible households.

Who Can Benefit?

The increased grant is aimed at homeowners replacing an existing oil or LPG heating system with a qualifying air source or ground source heat pump. To qualify, the installation must be completed through an MCS-certified installer, who will also submit the Boiler Upgrade Scheme application on your behalf.

If you're uncertain whether your property meets the requirements, a professional assessment is the best way to determine your eligibility.

What Does This Mean for Homeowners?

The additional £1,500 of funding could make a meaningful difference to the overall cost of installing a heat pump.

Combined with the long-term benefits of improved energy efficiency, lower carbon emissions, and reduced dependence on fossil fuels, the revised grant provides even greater support for homeowners planning to upgrade their heating system. If your home currently relies on oil or LPG heating, now may be an excellent time to explore the opportunities available through the Boiler Upgrade Scheme.

Thinking about installing an air source heat pump? Darlington Heat Pumps can help you check your eligibility and guide you through the installation process.