The Boiler Upgrade Scheme: Government Help With a Heat Pump

The Boiler Upgrade Scheme is a government grant that reduces the upfront cost of replacing a fossil fuel heating system with a low-carbon alternative, most commonly an air source heat pump. It is open to eligible homeowners and some landlords in England and Wales. Scotland and Northern Ireland have their own support. Details change, so always check GOV.UK for the latest.

How much is the grant?

Under the government's Warm Homes Plan, published in January 2026, the grant for qualifying heat pump installations was increased to up to £7,500. Grant levels for other technologies, such as biomass boilers, differ. Because levels and rules can be updated, check the current figures before you commit to a quote.

How does the money reach you?

You do not apply for the grant yourself. Your installer applies on your behalf, and the grant is taken off the quote, so you pay the reduced amount. This means you must use an installer who is registered to claim under the scheme.

Who is eligible?

• You own the property, including some landlords and owners of small non-domestic buildings, in England or Wales.
• The property has a valid Energy Performance Certificate, and your installer has checked the current EPC-related conditions.
• The existing heating system is being replaced, and the heat pump is installed by an MCS-certified installer.
• You have not received other government grants for the same installation.

The exact criteria can change, so ask your installer to confirm eligibility in writing.

Is your home ready for a heat pump?

A heat pump works best in a well-insulated home. Before getting quotes, review your loft, wall and floor insulation and your draughts. Our guides on how heat pumps work, heat pumps versus boilers, loft insulation and draught-proofing will help.

Getting quotes

1. Choose at least three MCS-certified installers and ask for a room-by-room heat loss calculation.
2. Ask what size heat pump they recommend and why, the expected efficiency, the flow temperature and whether radiators need to change.
3. Check that the quote shows the grant deducted, the total cost and what is included, such as a new hot water cylinder.
4. Ask about guarantees, servicing and what happens if the installer stops trading.

Other considerations

Zero-rated VAT on the installation of energy-saving materials, including heat pumps, applies in Great Britain until 31 March 2027, according to HMRC guidance, and this should be reflected in quotes. Check the position at the time of your installation. Also consider whether a smart tariff would suit you once the heat pump is running.

The grant can make a heat pump much more affordable, but it is not right for every home. Take time to get properly designed quotes before you decide.