The Boiler Upgrade Scheme now offers £9,000 to households heating with LPG or oil, nearly double the standard £5,000 grant for mains-gas homes. Announced by the Department for Energy Security and Net Zero on 24 March 2025, the change targets the 1.5 million UK homes not connected to the gas grid, where heating costs are typically 40–60% higher per kWh than mains gas, as reported by The Eco Experts. For a typical 3-bed semi burning 18,000 kWh of LPG a year, the switch could save roughly £800 annually at current prices, but the upfront cost remains a barrier.
Who qualifies, and who doesn’t
Households in England and Wales using LPG, oil, or solid fuel (including coal and biomass) can apply for the £9,000 grant. Eligibility requires a valid Energy Performance Certificate with no outstanding recommendations for loft or cavity wall insulation. The property must be off the mains gas grid, and the existing heating system must be at least 15 years old for new-build exemption. Renters and landlords can apply, but the property must be owner-occupied or let under a domestic tenancy. Commercial premises, holiday lets, and second homes are excluded. Ofgem, which administers the scheme, confirmed to the Energy Saving Trust that only 15,000 extra vouchers are available for 2025–26, with a total cap of 90,000 across all grant types.
What it costs a typical 3-bed semi
A full heat pump installation for an off-grid 3-bed semi typically ranges from £10,000 to £18,000, depending on the property’s insulation, existing radiator system, and location. The £9,000 grant therefore covers roughly half to two-thirds of the cost, a significant improvement on the old £5,000 grant, which left many LPG households facing a £5,000–£13,000 shortfall. But the real cost can climb higher: homes with poor insulation may need new radiators (costing £2,000–£4,000) or underfloor heating. The Energy Saving Trust advises that a properly installed heat pump can raise an EPC rating from D to C, adding £1,500–£3,000 to a home’s value. The catch is the payback period: even with the grant, a £12,000 installation would take 15 years to recoup in fuel savings, assuming current LPG prices of 7–9p/kWh.
What the expansion misses
The grant increase is welcome but leaves two glaring gaps. First, the eligibility window closes on 31 March 2027, barely two years for homeowners to arrange surveys, quotes, and installation. Given that heat pump installers are already booked months ahead in some regions (particularly Scotland and the South West), the deadline could create a rush that pushes prices up. Second, the scheme still ignores the 400,000 UK homes heated by electric storage heaters or direct electric, where running costs are even higher than LPG. Those households get only the standard £5,000 grant, even though their annual heating bills can exceed £2,500. The government has not announced any expansion for electric-only homes. Ofgem’s own data shows that heat pump installations under the scheme reached just 28,000 in 2024, well below the 50,000 target, suggesting that even the higher grant may not drive mass uptake without wider installer capacity.
What UK homeowners should do now
If you heat with LPG or oil and your boiler is over 15 years old, book an insulation assessment first, the grant requires your EPC to have no outstanding insulation recommendations. Then get three quotes from MCS-certified installers (check the register at mcs.org.uk). Apply for the voucher through the Ofgem portal as soon as you have a quote; vouchers are issued on a first-come, first-served basis until the 15,000 cap is reached. The deadline is 31 March 2027, but with only 15,000 vouchers for a potential 1.5 million households, the window will likely close much earlier. Households on standard variable tariffs should also check eligibility for the Energy Company Obligation (ECO4) scheme, which can cover insulation costs for low-income homes. For those who miss out, a well-insulated property with a modern LPG condensing boiler (85–90% efficient) remains a cheaper short-term option until heat pump costs fall further.
Frequently Asked Questions
No. The £9,000 rate is only for homes off the mains gas grid using LPG, oil, or solid fuel. Mains-gas households remain eligible for the standard £5,000 grant towards a heat pump.
No. You can apply for the voucher before removing your existing LPG or oil boiler. The installation must be completed within three months of the voucher being issued, and the old system must be decommissioned.
