If your home is not on mains gas and you heat it with oil or LPG, the government will shortly offer you more help to switch to a heat pump. From 21 July 2026, the Boiler Upgrade Scheme grant rises from £7,500 to £9,000 for homes like yours in England and Wales. That is a 20 per cent increase, and it comes off your installation bill up front.
Heating oil prices have been volatile, and homes that rely on oil or LPG sit outside the energy price cap that protects most households. The government’s answer is to make it cheaper for those homes to move to electric heating. Leaflets have gone out to around 200,000 eligible households, so if you have an oil tank in the garden you may already have heard about it. Here is what the change actually means, who qualifies, and how to make the most of it.
What is changing on 21 July 2026
The Boiler Upgrade Scheme (BUS) gives property owners in England and Wales an upfront grant towards replacing a fossil fuel heating system with a low carbon one. Until now the maximum grant has been £7,500 regardless of what you are replacing.
From 21 July 2026, the grant depends on your current heating:
- £9,000 towards an air source heat pump (air-to-water) or a ground source heat pump, if your property is off the gas grid and you are replacing an oil heating system
- £9,000 for the same heat pump types if you are off the gas grid and replacing an LPG heating system
- £7,500 towards an air source or ground source heat pump for everyone else, including homes on mains gas
- £5,000 towards a biomass boiler (off-grid, rural properties only)
- £2,500 towards an air-to-air heat pump
Two details worth noting. The uplift only applies to air source (air-to-water) and ground source heat pumps, not air-to-air units or biomass boilers. And it is specifically for oil and LPG replacements: if you are off the grid but replacing coal, electric storage heaters or a hybrid system, the grant stays at £7,500.
Who qualifies
You are eligible for the Boiler Upgrade Scheme if you own the property, whether it is your home, a second home, a property you rent out to tenants, or a small business premises. For the £9,000 uplift, the property also needs to be off the gas grid and currently heated by oil or LPG.
The other rules, verified on GOV.UK today:
- You must be fully replacing a fossil fuel or electric heating system. Homes that already have a heat pump or other low carbon system cannot use the scheme to replace it.
- You can still apply if you have already had government help with insulation or other energy efficiency work.
- Most new build properties and social housing are not eligible, though self-build homes are.
- You can only get one Boiler Upgrade Scheme grant per property, and hybrid systems (a boiler plus a heat pump together) are not covered.
Landlords take note: rental properties qualify, and with the EPC C requirement coming for rented homes by 2030, a £9,000 contribution towards electrifying an off-grid rental is worth a serious look.
How the grant actually works
You do not apply for the Boiler Upgrade Scheme yourself. It is installer-led: an MCS certified installer applies for the voucher on your behalf, deducts the grant from your invoice, and deals with Ofgem, the scheme administrator. You will get an email from Ofgem asking you to confirm the installer is acting for you, and the work has to be commissioned within the scheme’s 120-day application window.
That makes your choice of installer the most important decision in the process. Pyramid Eco is MCS certified, TrustMark registered and PAS 2030/2035 certified, and we take a whole-house view before we specify anything. A heat pump performs best in a home that holds its heat, so if your insulation needs attention we will tell you that first, and we can often help with funding for that too. Our Warm Homes Local Grant explainer and ECO4 page cover the schemes that can run alongside a heating upgrade.
Timing it right
The new grant values take effect for applications from 21 July 2026. If you heat with oil or LPG and a heat pump is on your list, the sensible move is to get a survey done now, so your installation is specified, quoted and ready to go once the higher grant is available. Heating projects are also far more pleasant in summer than in a cold snap, and installer diaries fill up fast in autumn.
One honest caveat: government schemes change, and grant levels are set by the Department for Energy Security and Net Zero, not by installers. We always verify the current rules on GOV.UK before we quote, and you can check the scheme yourself at gov.uk/apply-boiler-upgrade-scheme.
Is a heat pump right for your home?
Off-grid homes are often older, solid-walled or in rural spots across Hertfordshire, Buckinghamshire, Essex and the wider South East, and no two are alike. The right answer starts with an assessment of your property: its fabric, its heat loss, your radiators or underfloor heating, and the space available outside. That is exactly what our free survey covers, with no obligation and a clear written recommendation at the end, including the funding you can claim.
Heating your home with oil or LPG? Find out what the £9,000 grant could do for you. REQUEST YOUR FREE SURVEY and we will respond within 2 working hours.
By Michael Zohouri, Pyramid Eco. Scheme facts checked against GOV.UK on 17 July 2026. Grant values and eligibility are set by government and subject to change; funding is subject to eligibility and scheme availability.
