Last updated: 30 October 2026
As of 30 October 2026, the government’s Boiler Upgrade Scheme (BUS) is still available after the October 2026 Budget, with no changes to eligibility or grant amounts. Property owners in England and Wales can claim £7,500 towards a heat pump, or £9,000 for homes heated by oil or LPG until 31 March 2027. Here’s who is eligible, and the options if a heat pump isn’t right for your home.
| What | Detail |
|---|---|
| Air source or ground source heat pump | £7,500 grant |
| Oil or LPG homes (no mains gas) | £9,000 (an extra £1,500) until 31 March 2027 |
| Air-to-air heat pump | £2,500 grant (homes only) |
| Biomass boiler | £5,000 grant (rural, off-gas homes only) |
| Where it applies | England and Wales |
| Who runs it | Ofgem, on behalf of the government |
| Budget | £400 million in 2027-28, rising broadly in line with inflation |
| End date | None published on GOV.UK |
What has changed in the Boiler Upgrade Scheme?
The October 2026 Budget made no Boiler Upgrade Scheme changes to eligibility or grant amounts. The main change is to the Boiler Upgrade Scheme budget: the government will fund the scheme at £400 million in 2027-28, rising broadly in line with inflation after that.
Here’s what remains the same:
- The scheme still covers England and Wales. Scotland and Northern Ireland have separate schemes
- The grant still pays £7,500 towards an air source or ground source heat pump
- The temporary £9,000 rate for oil and LPG homes continues until 31 March 2027
- Ofgem still runs the scheme, and an MCS-certified installer still applies for the grant on your behalf
Before the Budget, the Guardian reported on 12 October 2026 that ministers were preparing to cut hundreds of millions of pounds from the scheme’s £2.7bn budget. In the end, the scheme continues with no change to who can claim or how much.
The Budget also announced plans to remove the gas standing charge from 2027. This isn’t part of the Boiler Upgrade Scheme, but it may affect your running costs if you’re moving off gas (see below).
Is the Boiler Upgrade Scheme still available?
Yes, the Boiler Upgrade Scheme is still available for homes in England and Wales, with a £7,500 grant to contribute to the cost of an air source or ground source heat pump. There’s also a £2,500 grant towards an air-to-air heat pump. GOV.UK doesn’t publish a Boiler Upgrade Scheme end date.
Uptake for the scheme in England and Wales has been high. Nesta reports that July and August 2026 were the busiest months on record for applications. High demand doesn’t mean you need to rush. It’s better to be sure which heating system suits your home first.
Who is eligible for the Boiler Upgrade Scheme?
Boiler Upgrade Scheme eligibility hasn’t changed following the October 2026 Budget. It isn’t UK-wide: only properties in England and Wales qualify. To meet the £7,500 heat pump grant eligibility rules:
- Your property is in England or Wales
- You are an owner-occupier, a landlord or a small business
- The new heating system must be replacing a fossil fuel or direct electric heating system. Most new builds are excluded, as the scheme is designed to improve the use of low-carbon heating in older buildings
- If you’re replacing electric storage or panel heaters with a heat pump, you may also qualify
- An MCS-certified installer must carry out the work and apply for you, and install the heat pump within 120 days of applying
- Social housing isn’t eligible
Eligibility rules can change, so always check the live GOV.UK page before committing to a new heating system.
Until 31 March 2027, homes heated by oil or LPG can get up to £9,000. Read more about the £9,000 heat pump grant for oil and LPG homes.
Is a heat pump right for your home?
Heat pumps suit many homes. Regardless of whether you can use a grant towards the costs or not, what matters is assessing the suitability of a heat pump for your home.
To help you weigh this up, here are four things that matter most if you’re considering installing a heat pump in your home:
- Insulation and heat loss. A heat pump works best at steady, lower flow temperatures, so a home that retains heat will benefit from the technology far better than a draughty house.
- Outdoor space. An air source heat pump unit needs room outside, with adequate clearance around it.
- Radiators and pipework. Existing radiators are often too small for the lower temperatures a heat pump needs to run efficiently.
- Hot water storage. You’ll need space for a cylinder, which stores hot water.
For the full suitability checklist, read whether air source heat pumps are suitable for UK homes.
Alternatives to heat pumps if you’re moving off gas or oil
If a heat pump isn’t right for your home, the main alternatives to heat pumps in the UK are electric radiators, an electric boiler and high heat retention storage heaters. While none of these currently qualify for the Boiler Upgrade Scheme, to help you choose, think about the level of comfort, control and running costs they’ll provide for your home.
Our guide on whether electric heating is the best alternative to gas boilers goes into more detail to help you compare fuel options.
| Option | Covered under a BUS grant? | Often suits | Things to consider |
|---|---|---|---|
| Air source heat pump | Yes (£7,500) | Well-insulated homes with outdoor space and a wet system | Upfront cost, radiator sizing, hot water cylinder, a certified MCS installer |
| Electric radiators (e.g. Fischer HeatCore) | No | Homes where a heat pump is impractical, like flats and some older homes, or those with no wet system | Higher cost per kWh of heat than a heat pump. Room-by-room control and good heat retention will help manage use. Electric radiators can be installed in just one day |
| Electric boiler | No | Homes keeping existing radiators and pipework | It’s a simple swap from gas or oil. Running costs are similar to other direct electric heating. For more information, read electric boiler installation costs vs electric radiators |
| High heat retention storage heaters | No | Homes on off-peak tariffs, or those replacing old storage heaters | Your choice of tariff will make all the difference here. Modern models retain heat better than older systems. |
| Staggered installation / Hybrid heating | Depends | Spreading the cost to upgrade, or balancing rooms with different heating needs | Plan your energy upgrade with a home survey to ensure different heating systems work together |
| Solar panels and battery storage | No (not under BUS) | Any of the above | Can reduce how much grid electricity you buy, depending on the home and usage |
If you already have storage heaters, this one’s worth knowing about. In an Energy Saving Trust field trial of five homes, old storage heaters were replaced with Fischer electric heaters, and households reported feeling more comfortable at an indoor temperature 0.7°C lower on average.
When weighing up a home heating upgrade, always factor the running costs which will depend on tariff, property size, your home’s insulation, risk of heat loss, room size, usage, room-by-room heating controls and the winter heating schedule. Running costs may also shift after the October 2026 Budget.
The government plans to remove the gas standing charge (currently about £108 a year, according to MoneySavingExpert) in 2027, or as soon as possible after, and move the cost onto the gas unit rate instead. It won’t affect bills this winter, the exact date hasn’t been confirmed, and electricity standing charges stay for now. Find out more about why electricity costs more than gas in the UK.
What should you do now?
If you’re ready to move away from gas or oil, here’s what to do next:
- If you’re considering a heat pump, double check your eligibility on GOV.UK, and ask an MCS-certified installer for an assessment. All applications go through their selected installer.
- If a heat pump isn’t suitable for your property, compare electric heating alternatives based on your household’s comfort, heating schedule and running costs – not just the savings a grant could provide.
- Don’t rush. A decision driven by a deadline is rarely the best one. Given energy prices change every quarter, always factor how your home loses heat.
- If you’re unsure which electric heating solution is more suitable, at Fischer we provide a completely free home heating survey to assess your property and recommend which electric heating option will suit it best.
Book a free heating survey to find the right option for your home
Regardless of the heating grant, the best heating system is the one that suits your home. Book a free home heating survey to assess your property and household’s heating needs.
At Fischer, we start with your home’s heat loss, rather than your grant options, and recommend an electric heating solution that’s right for you. For more information about future proofing your home, request a free catalogue or browse our full range of electric heating solutions.
Boiler Upgrade Scheme FAQs
Is the Boiler Upgrade Scheme still available?
Yes. The Boiler Upgrade Scheme is still available for homes in England and Wales. For more information on the latest grants, check out GOV.UK or ask an MCS-certified installer, who applies for the grant on your behalf.
How much is the Boiler Upgrade Scheme grant?
In 2026, the main heat pump government grant is £7,500 towards an air source or ground source heat pump. Homes heated by oil or LPG can get up to £9,000 until 31 March 2027. There’s also £2,500 towards an air-to-air heat pump, and £5,000 towards a biomass boiler in rural, off-gas homes.
When does the Boiler Upgrade Scheme end?
There’s no official Boiler Upgrade Scheme end date on GOV.UK. In the October 2026 Budget, the government confirmed funding of £400 million for 2027-28, rising broadly in line with inflation after that. The £9,000 rate for oil and LPG homes ends on 31 March 2027.
Is there a free boiler upgrade scheme?
No. The Boiler Upgrade Scheme is a grant towards a heat pump, not a free boiler. ECO, the main scheme that funded free boiler replacements for eligible households, ended on 31 March 2026. Check GOV.UK to find energy grants for your home in your local area.
Can landlords use the Boiler Upgrade Scheme?
Yes. The Boiler Upgrade Scheme for landlords works the same way as for homeowners: private landlords in England and Wales can apply for rental properties through an MCS-certified installer. Social housing isn’t eligible. For wider heating rules, read about the Decent Homes Update and the Renters’ Rights Act 2026.
Can I use the Boiler Upgrade Scheme to replace storage heaters or electric heating?
Yes, in some cases. GOV.UK lists electric heating alongside oil, gas and LPG as systems the scheme can replace, so swapping storage heaters for a heat pump may qualify.
Does the Boiler Upgrade Scheme cover air-to-air heat pumps?
Yes. GOV.UK lists a £2,500 grant towards an air-to-air heat pump, for homes only. The usual Boiler Upgrade Scheme eligibility rules apply, and an MCS-certified installer must apply on your behalf.
What heating alternatives are there to installing a heat pump?
There are many efficient alternatives to installing a heat pump in the UK, including electric radiators, an electric boiler, high heat retention storage heaters, or you could install a mix. However, none of these systems currently qualify for the Boiler Upgrade Scheme. Which one suits you depends on your home, its heat loss and your household’s heating requirements.