The short answer
The Boiler Upgrade Scheme (BUS) offers a £7,500 grant toward the cost of replacing a gas or oil boiler with an air-source or ground-source heat pump in England and Wales. The grant is paid directly to your MCS-certified installer, who deducts it from your bill. It does not fund gas-to-gas replacements. See our full grants guide for other schemes including ECO4.
The Boiler Upgrade Scheme is the UK government’s main financial incentive for switching from gas or oil heating to a low-carbon heat pump. The £7,500 grant sounds substantial, but heat pumps typically cost £10,000–£18,000 installed before the grant, so the scheme makes a meaningful but not transformative difference to the upfront cost. This guide explains how the scheme works, what you need to be eligible, and what realistic total costs look like.
Boiler Upgrade Scheme at a glance
- Grant amount £7,500 for ASHP or GSHP
- Who administers it Ofgem (England & Wales only)
- How it is paid Directly to your MCS-certified installer
- Eligible properties Homes with a valid EPC, no outstanding insulation recommendations
- Does it cover gas boilers? No — heat pumps only
- Installer requirement Must be MCS-certified
What the scheme covers
The Boiler Upgrade Scheme covers air-source heat pumps (ASHP) and ground-source heat pumps (GSHP) installed in domestic properties in England and Wales. At the time of publication the grant is £7,500 for both ASHP and GSHP installations (the GSHP grant was increased to match ASHP in 2023). The grant applies per property, not per person, and properties that have previously received a BUS grant are not eligible for a further one. Biomass boilers were formerly included in the scheme but were removed in 2023 as the government focused the scheme on electrification. Scotland has its own separate heat pump grant scheme.
Eligibility requirements
To qualify for the BUS grant, your property must:
- Have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft insulation or cavity wall insulation (or evidence that those wall types make such insulation impractical).
- Be in England or Wales (Scotland has a separate scheme).
- Not have previously received a BUS grant for the same property.
The property does not need to be a primary residence — landlords and second-home owners can also apply through an eligible installer. There is no income threshold for the BUS grant, unlike the ECO4 scheme.
| Heat pump type | BUS grant | Typical installed cost before grant | Typical out-of-pocket after grant |
|---|---|---|---|
| Air-source heat pump | £7,500 | £10,000–£15,000 | £2,500–£7,500 |
| Ground-source heat pump | £7,500 | £15,000–£30,000+ | £7,500–£22,500 |
How to access the grant
You cannot apply for the BUS grant yourself directly. Instead, you must use an MCS-certified heat pump installer, who applies for the voucher on your behalf. The installer receives the grant directly from Ofgem and deducts it from your bill, so you pay the net cost. When getting quotes, ask each installer to confirm they are MCS-certified and will apply for the BUS grant on your behalf; the grant should be clearly deducted on their quote so you can see the net cost. A list of MCS-certified installers is available on the Microgeneration Certification Scheme website.
Is a heat pump right for your home?
Heat pumps work most efficiently in well-insulated homes with larger radiators or underfloor heating that can operate at lower flow temperatures. An older, poorly insulated property with small radiators may need significant remedial work before a heat pump will match a gas boiler’s comfort level. Before committing, ask your installer for a full heat-loss assessment and a projection of running costs versus your current gas bills. Heat pumps run on electricity, and at current UK energy prices the running cost versus a modern efficient gas boiler depends heavily on your electricity-to-gas price ratio and how well the system is designed. This is general information and not financial or engineering advice; a thorough independent assessment of your property’s suitability is essential before making a decision. All heat pump work should be carried out by MCS-certified installers.
Interested in the heat pump grant?
An MCS-certified installer can assess your home’s suitability for a heat pump and apply for the BUS grant on your behalf, deducting it directly from the installation price.
Frequently asked questions
How much is the Boiler Upgrade Scheme grant in 2026?
The BUS grant is £7,500 for both air-source and ground-source heat pumps in England and Wales at the time of publication. Grant terms are set by the government and may change; check GOV.UK or Ofgem for the latest figures.
Can the BUS grant be used for a new gas boiler?
No. The Boiler Upgrade Scheme funds the replacement of gas or oil heating with a heat pump — not gas-to-gas replacements. For help with the cost of a new gas boiler, see the ECO4 scheme if you are on a qualifying benefit.
How do I claim the Boiler Upgrade Scheme grant?
You do not claim it directly. An MCS-certified heat pump installer applies for the BUS voucher on your behalf and deducts the grant amount from your bill. You pay the net cost after the grant.
What is MCS certification?
MCS (Microgeneration Certification Scheme) certification is the quality standard required for installers of small-scale renewable energy systems including heat pumps. Only MCS-certified installers can apply for the Boiler Upgrade Scheme on your behalf. Check installer credentials at mcscertified.com.
Sources & further reading
- GOV.UK — Boiler Upgrade Scheme guidance, grant amounts and eligibility criteria
- Ofgem — BUS administration, voucher application process and MCS requirements
- Energy Saving Trust — heat pumps, running costs and suitability assessment guidance
- MCS (Microgeneration Certification Scheme) — installer certification and consumer standards
This is general information, not advice for your specific property or installation. Costs, timescales and outcomes vary with your home, system condition and chosen engineer. All gas boiler work must be carried out by a Gas Safe registered engineer.