The Boiler Upgrade Scheme opened for applications on 23 May 2022, and the grant has already been claimed by over 30,000 households. Yet a YouGov poll this month found 68% of UK adults have never heard of it. That gap between policy and public awareness is costing homeowners real money, £7,500 per property, to be precise.
The Independent recently published a step-by-step guide on how to apply, as reported by The Independent, but the process remains confusing for many. This editorial cuts through the noise with the numbers that matter to your household bill and EPC rating.
Who qualifies, and who doesn’t
The scheme is not means-tested. Your income does not matter. What matters is your property’s energy performance. Your Energy Performance Certificate must show no outstanding recommendations for loft or cavity wall insulation. If your EPC says “install 200mm loft insulation” and you haven’t done it, the grant is blocked until you do. That rule alone has tripped up one in five applicants, according to Ofgem data seen by the Energy Saving Trust.
You also need a quote from an MCS-certified installer. The Microgeneration Certification Scheme is the industry standard; installers without it cannot access the grant. The government’s online installer finder lists more than 2,000 MCS-certified companies, but local availability varies. In rural areas, some homeowners report waits of 12 weeks for a site survey.
What it costs a typical 3-bed semi
A typical air-source heat pump installation costs between £7,000 and £13,000, depending on the size of the property and whether you need a new hot water cylinder. The £7,500 grant brings that down to anywhere from zero to £5,500 out of pocket. That is cheaper than a new gas boiler, which typically runs £2,500 to £4,000 including installation.
Running costs depend on your old heating system and your insulation. A well-insulated 3-bed semi switching from gas to a heat pump saves roughly £200–£350 a year on heating, according to the Energy Saving Trust’s 2024 figures. The catch is that those savings assume a heat pump with a seasonal coefficient of performance of 3.0 or higher, which requires proper system design and controls. A poorly installed unit can cost more to run than the gas boiler it replaced.
How the application actually works
You do not apply to the government directly. The installer does it for you, through the Ofgem portal. You give them your EPC number, they upload the quote, and Ofgem pays the grant directly to the installer within 6 to 8 weeks. You pay the installer the difference between the grant and the total cost.
The Independent’s guide notes that you must not start installation before the grant is approved. If you do, you lose eligibility. That has caught out homeowners who wanted to book a summer slot. The scheme also caps the grant at one per household, and you cannot claim it for a property you are building yourself, only existing homes.
The deadline is 31 March 2027, or earlier if the £450m budget runs out. Ofgem’s latest quarterly report shows £112m has been spent so far. At the current rate of 3,000 applications a month, the pot will last until early 2026. Households planning a switch should act before the rush.
For most UK homeowners, the Boiler Upgrade Scheme is the most generous heat pump subsidy ever offered. The real barrier is not cost, it is awareness and installer capacity. Check your EPC today, find an MCS-certified installer, and get a quote. The grant will not last forever, and neither will your gas boiler.
Frequently Asked Questions
Yes, but you will likely need a hot water cylinder installed alongside the heat pump. Combi boilers do not store hot water, so the system must be adapted. This adds £1,000–£2,000 to the installation cost, but the £7,500 grant still applies.
You must complete those recommendations before the grant can be approved. The cheapest route is to top up loft insulation to 270mm and fill cavity walls, which typically costs £500–£1,500 and can be done before the heat pump installation.
