Nearly 120,000 UK households have already applied for heat pump grants since the Boiler Upgrade Scheme launched in 2022. But the number of installations remains a fraction of the government’s annual target of 600,000.
The scheme’s budget was increased in the October 2023 Budget, with grants rising from £5,000 to £7,500 for both air-source and ground-source heat pumps. As reported by The Independent, the question of who qualifies and how to apply is now pressing for homeowners eyeing the £7,500 pot. The catch is that the scheme ends on 31 March 2027, and take-up has been slower than hoped.
Who qualifies, and who doesn’t
Eligibility hinges on three things: your property’s Energy Performance Certificate, the type of heating system you’re replacing, and your installer. You must own the property (or have permission from the landlord if you’re a tenant). The property must be in England or Wales, Scotland and Northern Ireland run separate schemes.
The EPC is the gatekeeper. It must show no outstanding recommendations for loft or cavity wall insulation. If your EPC says you need top-up loft insulation to 270mm, you must install it before applying. The Energy Saving Trust estimates that topping up loft insulation from 100mm to 270mm costs about £300–£400 for a typical 3-bed semi, but saves around £25 a year on heating bills. That payback is slow, but the grant won’t come without it.
You also need to be replacing a fossil fuel heating system, gas, oil, LPG, or electric storage heaters. Biomass boilers qualify only if you’re off the gas grid and have no mains gas connection. Properties built after 2022 are excluded, as they should already meet high efficiency standards.
What it costs a typical 3-bed semi
The £7,500 grant covers a chunk, but not all, of the installation cost. A typical air-source heat pump installation for a 3-bed semi costs between £7,000 and £13,000, according to the Energy Saving Trust. After the grant, you’d pay £0 to £5,500 out of pocket. Ground-source heat pumps cost more, typically £14,000 to £19,000, but the same £7,500 grant applies, leaving a bill of £6,500 to £11,500.
Running costs depend on your existing heating system. Replacing an old gas boiler with a heat pump can cut heating bills by 20–30% if the property is well insulated, but if your insulation is poor, savings disappear. The government’s own figures show that a typical household switching from gas to a heat pump saves about £200 a year on energy bills, but that assumes a well-insulated home with a modern heating system.
Ofgem sets the grant payment process: the installer claims the grant on your behalf, and the money is deducted from your invoice. You never see the cash, it’s a discount at point of sale. Payment typically takes 4–6 weeks from application.
The deadline and the bottleneck
The scheme is open until 31 March 2027, but the budget is capped. The government allocated £1.5 billion over the current spending review period, and if applications surge, the pot could run dry before the deadline. In 2023, the scheme was oversubscribed in some regions, leading to a pause in new applications for two months.
The bigger bottleneck is installer capacity. The Microgeneration Certification Scheme lists about 4,000 certified heat pump installers in England and Wales. That’s roughly one installer per 15,000 households. The Heat Pump Association estimates the industry needs 50,000 trained installers by 2030 to meet targets. For now, homeowners in rural areas may wait 8–12 weeks for an installation slot.
What this misses: the grant only covers heat pumps and biomass boilers. There is no equivalent grant for high-efficiency gas boilers, which remain cheaper to install but lock in fossil fuel use. The Boiler Upgrade Scheme is built to switch heating systems, not repair or replace like-for-like. If your gas boiler fails in January and you can’t afford the upfront cost of a heat pump, the grant won’t help you.
How to apply, step by step
First, get an up-to-date EPC (valid for 10 years, but the insulation recommendations must be current). Second, find an MCS-certified installer through the official MCS database. Third, get a quote that includes the grant deduction. The installer will submit the application to Ofgem via the online portal, and you’ll receive confirmation within 2–3 weeks.
Households on standard variable tariffs or with existing heat pumps do not qualify. If you’re on a low income, check the Energy Company Obligation scheme separately, it offers free insulation and heating upgrades for eligible households, but the criteria are stricter and the waiting lists longer.
Book a survey with an MCS installer before March 2026 to avoid the rush. The scheme closes in 2027, but installer slots will fill faster as the deadline approaches. The grant is a one-shot deal, once you’ve claimed it, you cannot claim again for the same property.
Frequently Asked Questions
Yes, you can replace a working gas boiler with a heat pump and claim the grant, provided your EPC has no outstanding insulation recommendations. The scheme does not require the existing system to be broken.
No, underfloor heating is not required. Heat pumps work efficiently with existing radiators, but your installer should check that the radiator system is sized correctly for lower flow temperatures. Oversized radiators may be needed, but that cost is typically included in the installation quote.
