The heat pump grant, in plain English
Here is the bit the adverts tend to skip. Swapping a tired gas or oil boiler for a heat pump used to mean a five figure bill and a long wait for the sums to add up. The heat pump grant exists to knock a big chunk off that upfront cost, and right now it’s more generous than it has ever been.
The scheme behind it is the Boiler Upgrade Scheme, run by Ofgem on behalf of the government. It hands you £7,500 towards a new heat pump, paid straight to your installer so you never touch the money yourself. From 21 July 2026, homes heated by oil or LPG are due an even bigger amount, and we’ll get to that below.
Last updated 13 July 2026. Written by Kim, who covers household energy and bills for Switcheroo.
Doing nothing has a price here too. Every winter on an ageing boiler is another winter of creeping fuel bills and the odd chance of a breakdown at the worst possible moment. The grant is the off ramp, and for once most of the paperwork is someone else’s job.
What is the heat pump grant and how much is it?
The heat pump grant is a one off payment of £7,500 towards installing an air source or ground source heat pump, checked July 2026. You don’t apply for the cash yourself. Your installer claims it and takes it off your quote, so the price you’re shown is already after the discount.
There’s no means test and no income cap, so what you earn doesn’t come into it. What counts is the type of heat pump and who fits it. Here’s how the amounts stack up right now.
| Heat pump type | Grant amount | Notes |
|---|---|---|
| Air source (air to water) | Around £7,500 | The usual choice, heats your radiators and hot water |
| Ground source | Around £7,500 | Higher to install, often cheaper to run |
| Air to air heat pump | Around £2,500 | Added to the scheme in January 2026, warms air not water |
| Oil or LPG home, from 21 July 2026 | Around £9,000 | Temporary uplift, air source and ground source only |
These are the published grant levels, checked July 2026. They can change, so confirm the current amount with your installer or on the Ofgem website before you commit to anything.
Who qualifies for the Boiler Upgrade Scheme?
The rules are refreshingly short. You need to own the home, or a small business premises, it has to be in England or Wales, and you’re replacing a fossil fuel system such as a gas, oil or LPG boiler, or older electric heating.
Your installer has to be certified under the Microgeneration Certification Scheme, usually shortened to MCS. That’s the bit that protects you, so it’s worth checking they hold it before you sign.
One hurdle has recently vanished. Until this year you needed a valid EPC with no outstanding insulation jobs flagged on it. Since April 2026 that condition has gone, so a draughty loft no longer blocks your claim. Good insulation still helps a heat pump do its job, it just isn’t a gatekeeper any more.
What about Scotland and Northern Ireland?
The Boiler Upgrade Scheme covers England and Wales only. Scotland runs its own support through Home Energy Scotland, and Northern Ireland has separate arrangements, so check the scheme for your nation rather than assuming these figures carry across.
Is a heat pump worth it once you count the grant?
Honest answer: it depends on your home, but the heat pump grant shifts the maths a long way. A typical air source install lands somewhere around £10,000 to £12,000 before any help. Take off the £7,500 and you’re often looking at roughly £2,000 to £4,000 out of pocket, and heat pumps carry 0% VAT at the moment on top. Treat those as rough estimates rather than a quote, because every home is different.
Running costs are the other half of the story. A heat pump is far more efficient than a boiler, but it runs on electricity, which costs more per unit than gas. Whether your bills actually fall depends on your insulation, the tariff you land on and how well the system is set up. Homes coming off oil or LPG, which are pricey fuels, tend to see the clearest saving, though any figure you’re quoted is an estimate that hangs on your own usage, so don’t read it as a promise.
A heat pump only makes sense on the right electricity deal, since that’s what it runs on day and night. It’s worth seeing what’s out there before you switch your heating over. Switcheroo is rated 4.45/5 on Reviews.io, and the comparison takes about the time it takes to make a cup of tea.
The £9,000 uplift for oil and LPG homes from 21 July
This is the timely part. The government has said the heat pump grant for homes heated by oil or LPG will rise from £7,500 to £9,000, with applications for the higher amount due to open on 21 July 2026. It’s aimed at the roughly 1.7 million mostly rural households sitting off the gas grid, who tend to pay the most to keep warm.
Two things worth holding in mind. The uplift is temporary and is set to run until 31 March 2027, so it rewards acting sooner rather than sitting on it. And it applies to air source and ground source heat pumps, not to air to air units or biomass boilers. The July date is the government’s target rather than a cast iron guarantee, so if you’re on oil or LPG it’s worth confirming the higher grant is live before you sign.
Before you apply
- Check your installer is MCS certified, it’s the safeguard that makes the grant valid.
- Get more than one quote, and ask for the price after the grant is deducted.
- On oil or LPG? Check whether the £9,000 uplift is live before committing.
- Line up the right electricity tariff, since that’s what your heat pump will run on.
- Ask about insulation, it isn’t required any more but it helps the system run well.
Frequently asked questions about the heat pump grant
- Do I have to pay the heat pump grant back?
- No. It’s a grant, not a loan, so there’s nothing to repay. Your installer claims the £7,500 and takes it off your bill.
- Can I get the grant if I rent?
- The scheme is for homeowners and small businesses in England and Wales. If you rent, the property owner would need to apply, so it’s a conversation to have with your landlord.
- Does the grant cover the whole cost of a heat pump?
- Usually not. The heat pump grant covers a large slice, and most homes still pay something towards the install. What’s left depends on your home and installer, so treat any figure as an estimate.
- Will a heat pump lower my energy bills?
- It can, especially if you’re coming off oil or LPG, but it isn’t guaranteed. The result depends on your insulation, your electricity tariff and how the system is set up.
- How long does the £9,000 uplift last?
- The higher amount for oil and LPG homes is set to run until 31 March 2027, with applications due to open on 21 July 2026. Confirm it’s live before you sign.
Whichever way you lean, it’s worth knowing the numbers before your next heating bill lands. You can weigh up the wider picture in our guide to the best way of heating your home, pick up more savings in our roundup of how to cut your home energy bills in 2026, or read the background on the shift towards home heat pumps. When you’re ready, you can compare energy deals to line up the electricity tariff your heat pump will run on. For the official rules, see the Boiler Upgrade Scheme on Ofgem.
