Boiler upgrade grant could hit £9,000 for low-income homes

The Boiler Upgrade Scheme grant could rise to £9,000 for some low-income homeowners, according to reports from MSN and the South Wales Argus. Currently, the grant stands at £7,500 for all households installing a heat pump, regardless of income. The proposed increase would target those in fuel poverty, off the gas grid, or living in properties with low EPC ratings.

Who qualifies for the £9,000 grant

Both reports indicate the higher grant would be means-tested. MSN suggests eligibility would be limited to households with a combined income below £31,000, while the South Wales Argus adds that homes without mains gas connection would also qualify. This mirrors the criteria used for the ECO4 scheme, which funds insulation and heating upgrades for low-income and vulnerable households.

The catch is that no official announcement has been made by the Department for Energy Security and Net Zero. The reports cite unnamed government sources, so the details — and the timeline — remain uncertain. Homeowners should not delay applying for the current £7,500 grant if they are ready to install a heat pump now.

What it costs a typical 3-bed semi

A standard air-source heat pump installation for a three-bedroom semi-detached house typically costs between £10,000 and £14,000, including the unit, labour, and any necessary pipework or radiator upgrades. With the current £7,500 grant, the homeowner pays £2,500 to £6,500 out of pocket. A £9,000 grant would reduce that to £1,000 to £5,000 — a significant saving, especially for households already struggling with energy bills.

But the upfront cost is not the only barrier. Many homes need insulation upgrades first to make a heat pump efficient. A property with an EPC rating of D or below may require cavity wall insulation, loft insulation, or even solid wall insulation, which can cost thousands more. The Boiler Upgrade Scheme does not cover these preparatory works, so homeowners may need to layer grants from ECO4 or the Home Upgrade Grant (HUG2) to get the property ready.

Why the change matters for Wales and other regions

The South Wales Argus report highlights the particular relevance for Wales, where a high proportion of homes are off the gas grid and rely on expensive oil or LPG heating. For these households, switching to a heat pump can cut heating bills by £300 to £600 a year, according to Energy Saving Trust estimates. A £9,000 grant would make that switch financially viable for many who currently cannot afford it.

Yet the policy also raises questions. If the grant is means-tested, middle-income households in off-gas-grid areas may miss out, even though their heating costs are just as high. The government may need to consider a sliding scale or a separate fund for rural off-grid homes that are not in fuel poverty.

Next steps for homeowners

If you are considering a heat pump, do not wait for the £9,000 grant to be confirmed. The current £7,500 grant is available now through the Boiler Upgrade Scheme, and applications are processed on a first-come, first-served basis. Check your eligibility on the Ofgem website, and get quotes from MCS-certified installers.

For low-income households, also check if you qualify for ECO4 or the Home Upgrade Grant, which can fund insulation and heating upgrades for free or at a reduced cost. Contact your local authority or energy supplier to start the process. The higher grant may come, but the savings from switching now could outweigh the wait.