Nearly 3.5 million UK households are living with an EPC rating of D or lower, and heating is the single biggest energy cost for most of them. The average home spends about £1,200 a year on heating alone, according to Ofgem data from June 2025. That figure is projected to rise by another £63 when the price cap adjusts in October.
Against that backdrop, the government’s heating grant programmes have never mattered more. As reported by inkl, the landscape of available funding is complex, but the savings are real for those who navigate it correctly.
Who qualifies, and who doesn’t
The Boiler Upgrade Scheme (BUS) is the headline grant: up to £7,500 off the cost of an air-source or ground-source heat pump. It is open to homeowners and self-builders in England and Wales. Landlords can also apply, but only for new-build properties or those with an EPC of C or above. The catch is that the property must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation. About 40% of applications are rejected because of this requirement, according to figures shared by the Energy Saving Trust in early 2025.
ECO4 is the other major route. It targets low-income households and those receiving means-tested benefits, offering fully funded insulation and first-time central heating. The scheme runs until March 2026, but funding is allocated regionally and often runs out mid-year. Applications are handled by your energy supplier, not the government, so the first step is to call your provider and ask for an ECO4 assessment.
What it costs a typical 3-bed semi
A typical heat pump installation costs between £9,000 and £13,000 before grants. With the BUS, that drops to £1,500–£5,500. Running costs vary: at current price cap rates (24.5p/kWh for electricity), a heat pump in a well-insulated 3-bed semi costs roughly £800–£1,000 a year to run, compared to £1,200 for a gas boiler. The payback period is typically 5–10 years, depending on insulation quality and usage patterns.
For those who qualify under ECO4, the cost is zero, but eligibility is strict. A household must have an income below £31,000 (or receive specific benefits) and an EPC of E, F, or G. The scheme covers loft insulation, cavity wall insulation, and in some cases a new A-rated boiler.
The catch: timing and paperwork
The biggest hurdle is the 90-day rule under BUS: you must apply within 90 days of the installation date. That means you cannot simply apply for a grant and wait, you need to have a quote from an MCS-certified installer, a valid EPC, and written confirmation that the insulation recommendations have been met, all before the work starts. Ofgem processes applications in about 20 working days, but delays are common during peak months (April–September).
For ECO4, the bottleneck is the assessment. Suppliers are required to conduct a full survey before approving any work, and some have been criticised for slow turnaround times. If you are on a low income, it is worth contacting your supplier directly rather than waiting for a government portal to open.
What to do next
First, check your EPC rating on the gov.uk portal. If it is D or lower, you are a strong candidate for BUS or ECO4. Second, get at least two quotes from MCS-certified installers, the cost difference can be as much as £3,000 for the same system. Third, apply for the BUS through the Ofgem portal before the work begins. For ECO4, call your energy supplier today and ask for an assessment. The schemes are not infinite: BUS has a cap of 90,000 vouchers per year, and ECO4 funding is allocated on a first-come, first-served basis by region. Delaying could mean missing out entirely.
Frequently Asked Questions
No. The BUS provides up to £7,500 off the cost of a heat pump, not a boiler. For a free boiler, you need to qualify under ECO4, which is only available to low-income households on certain benefits or with an income below £31,000.
No, a smart meter is not a requirement for any current heating grant scheme. However, suppliers may ask for one during an ECO4 assessment to verify energy usage. It is not a barrier to eligibility.
