Heat pump grants for oil-heated homes set to rise to £9,000

Homes off the gas grid are about to get the biggest heat-pump subsidy in England and Wales. From 21 July 2026, the Boiler Upgrade Scheme grant rises from £7,500 to £9,000 for households replacing an oil or LPG system with a heat pump. The £1,500 uplift is aimed squarely at rural, off-gas homes that have the most to gain from the switch.

What is changing

The higher £9,000 grant applies to off-gas-grid oil and LPG replacements using an air-to-water (air source) or ground source heat pump, in England and Wales. It is a temporary uplift: the window runs from 21 July 2026 to 31 March 2027. Around 1.7 million homes fall into this off-gas category, many of them rural. The standard £7,500 grant continues for homes replacing mains gas.

What you would actually pay

The grant comes off the installed price, handled by your installer, so you never need the full cash. With the £9,000 uplift, the government estimates a typical detached home could pay around £3,600 upfront, and smaller properties such as bungalows and terraces closer to £2,500. The running-cost case is strongest here too: heating oil is volatile and often expensive, and a well-sized heat pump on a heat-pump tariff usually undercuts it.

How to get it

You do not apply yourself. An installer holding active MCS accreditation applies to Ofgem, gets the voucher, and deducts the grant from your quote. The same rules as the standard scheme apply: a valid EPC, a proper heat-loss survey, and correct sizing. The mechanics are the same as the existing grant, covered in the Boiler Upgrade Scheme explained, and the running-cost maths is in are heat pumps worth it.