The Boiler Upgrade Scheme now hands out £9,000 to households that are not in new builds — a rule change that opens the tap for half a million UK homes. As reported by Birmingham Live, the shift targets homes with gas boilers older than 15 years — roughly 8 million properties across England and Wales.
Who qualifies — and who doesn’t
Households in existing homes — not new builds — can now apply for up to £9,000 towards an air source heat pump or ground source heat pump. The grant covers most of the installation cost: a typical air source heat pump runs £7,000–£13,000, so the £9,000 leaves you paying £2,000–£4,000. Ground source systems, which cost £15,000–£25,000, still require significant top-up. Eligibility requires your property to have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. Ofgem administers the scheme, and applications opened on 23 October 2023 for the expanded criteria.
What it costs a typical 3-bed semi
Take a 3-bed semi in Manchester currently running a 12-year-old gas boiler. Annual heating bill: £1,200. Switch to an air source heat pump with the £9,000 grant, and your upfront cost drops to about £3,000. Running costs: roughly £700–£900 a year — a saving of £300–£500 annually. Over 10 years, that’s £3,000–£5,000 net gain, plus the EPC jumps from band D (55-68) to band C (69-80) or even B (81-91) if you add smart controls. The Energy Saving Trust estimates heat pumps can cut carbon emissions by 65% compared to gas boilers.
The catch: insulation first
But the grant comes with a condition: your home must be well-insulated. The scheme requires an EPC with no ‘loft insulation‘ or ‘cavity wall insulation’ recommendations marked as ‘not installed’. That means many older homes — particularly those with solid walls or uninsulated lofts — need to spend £1,000–£3,000 on insulation first. The Great British Insulation Scheme offers free or discounted insulation for low-income households, but for others, it’s an upfront cost. Officials have not confirmed how many homes will be rejected on this ground, but industry estimates suggest 30% of applications may fail the insulation check.
How to apply and by when
Households on standard variable tariffs can apply through the Ofgem portal from 23 October 2023. The scheme runs until 2028, but funding is capped at £450 million per year — first-come, first-served. Installers must be MCS-certified; you can find one via the MCS website. Apply before 31 March 2027 to guarantee consideration. For homes with solid walls or no gas connection, the grant may not cover full costs — check with an installer first. The rule change is a rare win for existing homeowners: £9,000 off a heat pump, with a 5-7 year payback on typical bills.
Frequently Asked Questions
The Boiler Upgrade Scheme now offers up to £9,000 for existing UK homes to install an air source or ground source heat pump. For a typical air source heat pump costing £7,000–£13,000, the grant leaves you paying £2,000–£4,000, while ground source systems costing £15,000–£25,000 require a larger top-up.
Households in existing homes—not new builds—with a valid Energy Performance Certificate (EPC) can apply if their property has no outstanding recommendations for loft or cavity wall insulation. The scheme targets homes with gas boilers over 15 years old, and applications opened on 23 October 2023 through Ofgem.
For a typical 3-bed semi in Manchester with a 12-year-old gas boiler costing £1,200 annually, switching to an air source heat pump with the £9,000 grant reduces upfront costs to about £3,000. Running costs drop to £700–£900 per year, saving £300–£500 annually, with a 5-7 year payback period.
Yes, your home must be well-insulated to qualify. The scheme requires an EPC with no 'loft insulation' or 'cavity wall insulation' recommendations marked as 'not installed', which may mean spending £1,000–£3,000 on insulation first. Industry estimates suggest 30% of applications may fail this check.
Apply through the Ofgem portal from 23 October 2023, using an MCS-certified installer found via the MCS website. The scheme runs until 2028 with £450 million annual funding on a first-come, first-served basis, but you must apply before 31 March 2027 to guarantee consideration.
