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Air-to-Water Heat Pumps · 5 min read

Boiler Upgrade Scheme explained

In short

The Boiler Upgrade Scheme is a government grant in England and Wales towards replacing fossil-fuel heating with a heat pump. The MCS-certified installer applies and deducts it from your price; you do not claim it yourself.

Boiler Upgrade Scheme explained

The key points

  • Available in England and Wales for replacing fossil-fuel heating
  • Air-to-air only qualifies when it heats the whole home
  • An off-gas uplift applies for eligible oil and LPG homes for a limited time
  • The installer applies to Ofgem and deducts the grant
  • The grant doesn't make an unsuitable system a good idea

The short answer

The Boiler Upgrade Scheme is a government grant in England and Wales towards replacing fossil-fuel heating with a heat pump or, in some cases, a biomass boiler. It’s £7,500 for an air-to-water or ground source heat pump and £2,500 for an air-to-air heat pump that heats the whole home. Eligible off-gas homes can receive £9,000 until 31 March 2027. The MCS-certified installer applies and takes it off your price; you don’t claim it yourself. Figures last checked 30 October 2026 (GOV.UK: Boiler Upgrade Scheme grant levels).

How much is available

Technology Grant
Air source heat pump (air-to-water) £7,500
Ground source heat pump £7,500
Air-to-air heat pump (whole-home heating only) £2,500
Biomass boiler (limited eligibility) £5,000
Air or ground source, eligible off-gas (oil or LPG) homes, until 31 March 2027 £9,000

The main conditions

  • The property is in England or Wales.
  • You own it (homeowners, landlords and small businesses can apply through an installer).
  • The new system replaces fossil-fuel heating such as gas, oil or LPG, or direct electric heating, rather than sitting alongside it.
  • It’s installed by an MCS-certified installer, who applies to Ofgem for you.
  • For air-to-air: the system must be designed to heat the whole home. Systems that cool or heat a few rooms alongside your boiler don’t qualify.
  • New-build properties are generally excluded.

Ofgem administers the scheme and its rules change from time to time, so treat this as a summary and check GOV.UK for the current position.

How it works in practice

  1. An MCS-certified installer assesses your home and designs the system.
  2. You accept their quote, which shows the grant deducted.
  3. The installer applies to Ofgem for the voucher.
  4. Ofgem contacts you to confirm you agreed to the application.
  5. Once approved and installed, the installer redeems the voucher.

What the grant doesn’t change

A grant makes a good heat pump more affordable. It doesn’t make an unsuitable one a good idea. Whether the system will keep your home warm, at a sensible running cost, comes from the heat-loss calculation and design, not from the grant. Read Can a heat pump replace my boiler? first.

Thinking about a heat pump? Start your home assessment to see whether your home is a good candidate.

Sources

Questions

Do I apply myself?

No. Your MCS-certified installer applies to Ofgem, and Ofgem checks with you that you agreed.

Can landlords apply?

Yes, property owners including landlords can benefit through an installer.

Does it cover air-to-air?

Only where the system replaces fossil-fuel heating and is designed to heat the whole home.

Is Scotland included?

No. Scotland has its own schemes through Home Energy Scotland.

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