If you’ve heard you can get thousands of pounds off a heat pump but assumed there’d be a catch, this guide is for you. The Boiler Upgrade Scheme is a government grant of £7,500 towards an air source or ground source heat pump for homes in England and Wales — and from July 2026, that rises to £9,000 if your home currently runs on oil or LPG. Around here, with so many villages off the gas grid, that second figure matters more than most guides let on.
Here’s how it actually works, who qualifies, and what the process looks like — without the jargon.
What You Can Get
On top of the grant, heat pump installations currently carry zero VAT — a second saving most people don’t know about. The scheme is currently funded to run until 2028, though grant schemes can and do change, which is one honest reason not to sit on the decision for years.
Who Qualifies
The rules are simpler than most people expect. You’ll generally qualify if:
You own your home (or small business premises) in England or Wales. You’re replacing a fossil fuel system — gas, oil or LPG — or electric heating that isn’t already a heat pump. And the installation is carried out by an MCS-certified installer, because the grant can only be claimed through one.
What you don’t need anymore: as of April 2026, there’s no EPC requirement to apply — an earlier rule that used to delay applications and add a survey cost has gone. There’s also no income test; the grant is the same whoever you are.
The £9,000 Question for Village Homes
Between July 2026 and March 2027, homes heated by oil or LPG qualify for the higher £9,000 grant. If you live in one of the villages around Manningtree, Colchester or Ipswich where the gas main never arrived — and you’re staring down another winter of oil deliveries and tank prices — this is squarely aimed at you.
Oil-heated homes are often the ones where a heat pump makes the strongest financial case anyway: you’re not comparing against cheap mains gas, you’re comparing against oil. The uplifted grant narrows the upfront gap further, for a limited window.
How the Grant Actually Works
This is the part that surprises people: you don’t apply for anything, and you never handle the money.
1. You get a quote from an MCS-certified installer for a suitable heat pump system. 2. The installer applies for the grant on your behalf and deducts it straight off your quote — so a £13,000 installation with the £7,500 grant is quoted to you at £5,500. 3. The installer redeems the grant from Ofgem, who administer the scheme. Paperwork, vouchers, compliance — their problem, not yours.
The practical upshot: choosing the right installer is the application process.
Is a Heat Pump Right for Your Home?
The honest answer is that it depends on the house — insulation, radiator sizes, space for the outdoor unit — which is why a proper survey beats any online calculator. Heat pumps run at lower temperatures than boilers, so they suit some systems as-is and need radiator or cylinder upgrades in others. Underfloor heating pairs particularly well with them, which is why the two are often installed together.
Frequently Asked Questions
1. Do I have to repay the grant?
No — it’s a grant, not a loan. Once it’s applied to your installation, that’s that.
2. Can I get the grant if my gas boiler still works?
Yes. The scheme is about what you’re replacing, not whether it’s broken. Plenty of people upgrade a working-but-ageing boiler while the grant exists rather than waiting for a mid-winter breakdown to force the decision.
3. Does my home need to be well insulated first?
There’s no longer a formal insulation or EPC requirement to get the grant — but insulation still affects how cheaply a heat pump runs, so a good installer will talk to you about the whole picture, not just the unit.
4. What’s the catch?
Genuinely, the main one is that the grant only flows through MCS-certified installers — so a quote from anyone else can’t include it. Beyond that: the scheme has an end date, budgets are finite each year, and the £9,000 oil/LPG uplift is a limited window.
Thinking About Making the Switch?
We install underfloor heating and full heating systems across Essex and Suffolk, and we’re happy to give honest advice on whether a heat pump conversion makes sense for your home and how the grant process works.
Planning a project? See our plumbing & heating in Essex service, our boiler installation cost guide and heat pump vs new boiler guide, or get a free quote.
