More than 10,000 letters will land on doormats from 21 July, each one offering up to £9,000 towards a heat pump. The government is writing directly to households it believes qualify for the expanded Boiler Upgrade Scheme, and the timing matters. Ofgem raised the price cap by £63 in April, with another rise expected in October. Every pound of grant is a pound off a household’s energy bill over the long run.
As reported by the Manchester Evening News, the letters are part of a targeted push to reach homes that stand to gain most. The government’s own data shows only 35,000 heat pump installations were completed in 2024 under the scheme, well short of the 600,000 annual target by 2028. Direct mail is the latest attempt to close that gap.
Who qualifies, and who doesn’t
The £9,000 grant is not for everyone. It replaces the standard £7,500 for households that are off the gas grid and currently use oil, liquefied petroleum gas (LPG), or direct electric heating. Those on mains gas still get £7,500. The letters will target postcodes with high concentrations of oil-heated homes, rural areas in Scotland, Wales, South West England, and parts of Northern England.
Eligibility is based on the property’s existing heating system, not household income. Landlords and second-home owners can apply, provided the property has an Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. The scheme is first-come, first-served, and the total fund is capped at around £450 million for the current financial year.
What it costs a typical 3-bed semi
A typical air-source heat pump installation costs between £9,000 and £14,000 for a 3-bed semi-detached home, according to Energy Saving Trust estimates. The £9,000 grant brings the homeowner’s share down to between £0 and £5,000. Running costs depend on the property’s insulation levels and the heat pump’s efficiency, a modern unit with a Seasonal Coefficient of Performance (SCOP) of 3.5 will produce 3.5 kWh of heat for every 1 kWh of electricity it consumes.
For a home using 12,000 kWh of oil per year, switching to a heat pump at current price cap rates (24.5p/kWh for electricity, 5.5p/kWh for oil) would save roughly £400 annually. The savings grow if the home has solar panels or a time-of-use tariff. The EPC impact is typically 1 to 2 bands, a D-rated property can move to a B with a heat pump and good insulation.
But the catch is upfront cost. Even with £9,000, some households face £5,000 outlay. Installers report that many oil-heated homes have older radiators that need upgrading to run at lower flow temperatures, adding £1,500 to £3,000 to the bill. The grant does not cover radiator upgrades.
How to apply, and what happens next
Households that receive a letter can apply through the Boiler Upgrade Scheme website from 21 July. The process requires a quote from an MCS-certified installer, who submits the grant application on the homeowner’s behalf. Payment is deducted from the installer’s invoice, so the homeowner never handles the grant money directly.
The government has not confirmed how many letters will go out in total, or whether this is a one-off mailing or the start of a rolling campaign. What is clear: the £9,000 grant is the most generous heat pump incentive ever offered in the UK, and it is time-limited. Applications close when the fund runs out, which could be within months if demand surges.
Homeowners who do not receive a letter should not assume they are ineligible. The standard £7,500 grant remains available to any household in England or Wales with a valid EPC and a fossil-fuel boiler. Scotland runs a separate scheme through Home Energy Scotland with grants up to £9,000 regardless of heating type.
Frequently Asked Questions
No. The letters are a targeted mailing for off-gas-grid homes, but any eligible household can apply for the standard £7,500 grant through the Boiler Upgrade Scheme. If you are off the gas grid and use oil, LPG, or electric heating, you qualify for the higher £9,000 amount regardless of whether you receive a letter.
It can, but performance depends on insulation. Heat pumps run at lower temperatures than boilers, so a well-insulated home with large radiators or underfloor heating works best. The grant does not cover insulation or radiator upgrades, but the Energy Company Obligation (ECO4) scheme may help with loft and cavity wall insulation for low-income households.
