The Boiler Upgrade Scheme (BUS) is the UK's main heat pump grant, offering up to £7,500 for most homes in England and Wales and rising to £9,000 for oil and LPG properties from July 2026. Scottish homeowners have a separate scheme through Home Energy Scotland. Grants do not cover the full cost, but they make a significant dent.
What Grants Are Available in 2026?
There are two main schemes to know about depending on where you live.
Boiler Upgrade Scheme (England and Wales)
The BUS is the primary grant for replacing a fossil fuel heating system with a heat pump in England and Wales. It is installer-led, meaning your MCS-certified installer applies on your behalf. You do not fill in forms or wait for a cheque. The grant is deducted directly from your installation quote.
Current grant amounts
| Propoerty Type | Grant Amount |
|---|---|
| Gas | £7,500 |
| Oil and LPG | £9,000 |
The £9,000 uplift for oil and LPG properties was announced in April 2026 and is expected to take effect in July 2026, subject to a formal Grant Change Notice on GOV.UK. Until that notice is published, the current £7,500 rate applies to all properties.
The 120-day rule matters here. BUS voucher applications can be submitted up to 120 days after an installation is commissioned. If you have a heat pump installed in May or June 2026, you may be able to apply under the new £9,000 rate in July, provided the commission date falls within that window. If you already hold a BUS voucher and installation has not yet happened, you can withdraw and reapply at the higher rate once it goes live. But, confirm the exact change date with your installer before doing so.
Why oil and LPG homes are getting more
Oil and LPG prices have no equivalent of a price cap. When global energy markets spike, households on these fuels absorb the full impact. The government was explicit that the uplift targets those most exposed to volatile energy costs, particularly in rural areas. A heat pump removes that exposure and your heating bill moves to electricity, which has price cap protection.
Home Energy Scotland (Scotland)
Scottish homeowners are not covered by BUS. Instead, the Home Energy Scotland Grant and Loan Scheme provides:
- Grants of up to £7,500 towards a heat pump installation
- Interest-free loans of up to £7,500 on top of the grant
- Combined support of up to £15,000 for eligible properties
The application process is different from BUS. You apply through Home Energy Scotland rather than through your installer. Heat Geek works with installers across Scotland and can guide you through the process.
Do You Qualify for BUS?
The main conditions:
- Your property is in England or Wales
- You are replacing a fossil fuel heating system (gas, oil, LPG or electric storage)
- You own the property (landlords may also qualify in some cases)
- Your installer is MCS-certified and registered to apply for BUS
- The system meets performance and commissioning standards
You cannot stack BUS with certain other government funding. If major public funding has already been applied to your home's heating system, you may be excluded. We check all of this during your Design Consultation.
Does the Grant Cover the Full Cost?
No. A typical air source heat pump installation costs between £10,000 and £15,000 before any grant. The BUS grant covers a significant portion but there will usually be a remaining balance to pay.
That balance can vary depending on your property, the system specification, and whether upgrades to radiators, pipework or controls are needed. Some homes need very little additional work. Others need more. The only way to know is through a proper heat loss calculation.
Why the Design Matters as Much as the Grant
Most heat pump problems such as high bills, cold rooms, systems that trip out in winter trace back to poor design, not the technology. A heat pump is not a direct swap for a boiler. It needs to be sized correctly, run at low flow temperatures and have the right emitters and controls.
A system running at a coefficient of performance (COP) of 4 costs half as much to run as one running at 2. That difference comes entirely from how the system is designed and installed.
For oil and LPG homeowners specifically, a well-designed heat pump at today's fuel prices already makes a strong running cost case before the grant is factored in. The £9,000 BUS uplift from July 2026 strengthens that further.
Getting the design right is what Heat Geek does. Our ZeroDisrupt™ process uses in-house tooling and AI to calculate your home's heat loss and build a system specification around it. Every install in our network is carried out by engineers trained to our standard.
What Happened to the Renewable Heat Incentive?
The domestic RHI closed to new applicants on 31 March 2022. It provided ongoing payments over roughly seven years for renewable heating installations. BUS replaced it as the primary support scheme for domestic properties in England and Wales.
