The Boiler Upgrade Scheme will offer up to £9,000 from next week, £1,500 more than before, and the government expects 200,000 households to apply in the first year. That is a concrete number with a concrete date, and it changes the arithmetic for anyone weighing a heat pump against a new gas boiler.
As reported by The Sun, the uplift from £7,500 to £9,000 comes as part of the government’s push to install 600,000 heat pumps annually by 2028. For a typical 3-bed semi, an air source heat pump installation costs between £7,000 and £13,000, so the grant now covers the majority of the bill for many households.
Who qualifies, and who doesn’t
Eligibility is tighter than the headline suggests. Only owner-occupiers in England and Wales can apply. Private tenants, landlords (except in limited circumstances), and social housing residents are excluded. The property must have an Energy Performance Certificate rating of D or above, no E, F, or G bandings accepted. And crucially, the home cannot already have a low-carbon heating system installed. Ofgem administers the scheme and confirms that applicants must use an MCS-certified installer. Applications open from next week via the installer, not the homeowner directly.
The catch is the EPC threshold. Around 40% of UK homes are rated D or below, but many older properties with solid walls and single glazing sit at E or F. Those households cannot claim the grant unless they first improve their fabric efficiency, loft insulation, cavity wall fill, or draught-proofing, to reach band D. That upfront cost, typically £2,000 to £5,000, is not covered by the scheme.
What it costs a typical 3-bed semi
An air source heat pump for a 3-bed semi costs roughly £9,000 to £12,000 including installation. With the new £9,000 grant, the household pays £0 to £3,000. A ground source heat pump costs more, £14,000 to £19,000, but the grant also rises to £9,000 for that technology, leaving a residual cost of £5,000 to £10,000. Running costs depend on the heat pump’s efficiency (typically a Seasonal Coefficient of Performance of 3.0 to 4.0) and the household’s current fuel. Replacing a gas boiler with a heat pump on the standard variable tariff can save a typical household £100 to £200 per year on heating, according to Energy Saving Trust estimates, though savings vary with insulation levels and usage patterns.
The government expects the scheme to cut carbon emissions by 1.5 million tonnes over its lifetime. For the individual homeowner, the EPC impact is also notable: a heat pump can lift a property from band D to C, adding an estimated 5% to 10% to resale value, according to estate agent data cited by the Energy Saving Trust.
How to apply, and the deadline
Households do not apply directly to the government. Instead, they find an MCS-certified installer, get a quote, and the installer submits the grant application on their behalf. Ofgem then pays the installer, who deducts the grant from the homeowner’s bill. The scheme runs until 31 March 2027, but the government warns that funding is capped per financial year, 200,000 grants in year one means first-come, first-served. Installers report that popular slots fill within weeks of each funding tranche opening.
Homeowners considering the switch should book an EPC assessment now if they do not have a valid one. Those at band D or above can proceed. Those at band E or below should start with insulation and draught-proofing work before applying. The Energy Company Obligation (ECO4) scheme may help fund those fabric improvements for low-income households.
For most owner-occupiers with a decent EPC rating, the £9,000 grant makes a heat pump cheaper than a new gas boiler, which typically costs £2,500 to £4,000 installed. The payback period, factoring in annual savings, falls to under five years for many households. The window opens next week. Eligible homeowners should contact an MCS-certified installer before the first tranche closes.
Frequently Asked Questions
No. The scheme requires an EPC rating of D or above. If your home is rated E, F, or G, you must first improve its energy efficiency, through insulation, draught-proofing, or glazing, to reach band D. The ECO4 scheme may help fund those improvements for eligible low-income households.
It covers most but not always all of the cost. An air source heat pump for a typical 3-bed semi costs £9,000 to £12,000. With the £9,000 grant, you pay £0 to £3,000. Ground source heat pumps cost more, £14,000 to £19,000, leaving a residual cost of £5,000 to £10,000 after the grant.
