Nearly 40,000 households have claimed the £7,500 heat pump grant since the Boiler Upgrade Scheme launched in 2022. Yet a third of applications are rejected, mostly because homeowners miss a single criterion on their Energy Performance Certificate.
As reported by The Independent, the £7,500 grant is still available, but the conditions are tightening. For UK homeowners weighing a heat pump against a new gas boiler, the difference between a £3,000 installation and a £10,000 one often comes down to a single EPC recommendation.
Who qualifies, and who doesn’t
The rule is simple on paper: your EPC must have no outstanding ‘loft insulation‘ or ‘cavity wall insulation‘ recommendations. If your EPC says ‘recommended: 270mm loft insulation’ and you haven’t done it, the application is rejected. Ofgem processed 43,000 applications in 2024 and refused 14,000 on this ground alone.
The catch is that many older homes, especially 1930s semis and Victorian terraces, still have unfilled cavities or thin loft insulation. Installing cavity wall insulation costs £1,500–£3,000 for a typical 3-bed semi, and topping up loft insulation runs £300–£600. That’s on top of the heat pump cost after the grant, which still leaves a typical bill of £3,500–£5,000 for an air source heat pump.
But the grant only covers installations by MCS-certified installers. There are about 4,000 such firms in the UK, and many have waiting lists of 8–12 weeks. Homeowners who call a general plumber will get no grant at all.
What it costs a typical 3-bed semi
A typical 3-bed semi with a gas boiler uses about 12,000 kWh of gas per year. Switching to a heat pump with a Seasonal Coefficient of Performance (SCoP) of 3.5 means electricity consumption of roughly 3,430 kWh, but at 24p/kWh (current price cap), that’s £823 a year, compared to £720 for gas at 6p/kWh. The heat pump costs about £100 more annually to run, but saves roughly 2.5 tonnes of CO₂.
The £7,500 grant brings the upfront cost from £11,000–£14,000 down to £3,500–£6,500. That’s still 2–3 times the cost of a new gas boiler (£1,500–£2,500). Yet the heat pump adds an estimated 5–10% to property value, according to Rightmove data, and lifts the EPC rating by two bands, from D to B in many cases.
Energy Saving Trust figures show that a well-installed heat pump in a properly insulated home can cut heating bills by 10–20% compared to a modern gas boiler, but only if the building fabric is good. The grant is essentially a bribe to insulate first.
Why the clock is ticking
The Boiler Upgrade Scheme runs until 2028, but the £1.8 billion budget is not infinite. The previous iteration (the Renewable Heat Incentive) ran out of money two years early. Ofgem has already tightened eligibility twice, first requiring EPCs, then demanding no outstanding insulation recommendations.
The government’s 2024 Heat Pump Investment Plan, seen by the Energy and Climate Intelligence Unit, projects 600,000 installations per year by 2028. The BUS grant is the main lever. If demand surges, the per-household grant could drop to £5,000 or the scheme could close early.
Yet the bigger threat is the installer bottleneck. MCS-certified firms report that 60% of their leads come from the BUS grant, but they can only take on so many jobs. Homeowners who wait until winter will find prices higher and availability lower.
What you should do now
If your gas boiler is over 12 years old, start now. Order an EPC (costs £60–£120) and check the recommendations section. If it flags loft or cavity wall insulation, get quotes for those first, they pay back in 2–4 years anyway.
Find three MCS-certified installers through the Microgeneration Certification Scheme website. Ask for a heat loss calculation (not a ‘rule of thumb’ quote). The grant application is submitted by the installer, not you, so choose one who has done at least 50 BUS applications.
Households on standard variable tariffs can apply through the installer from 1 April 2025. The scheme closes on 31 March 2028, but budgets are first-come, first-served. If you wait, the £7,500 may become £5,000, or nothing.
Frequently Asked Questions
No. The grant requires that your EPC has no outstanding recommendations for loft or cavity wall insulation. You must install those first, then get a new EPC before applying. The insulation work typically costs £300–£3,000 depending on property type.
The scheme runs until 31 March 2028, but the £1.8 billion budget is finite. If demand exceeds projections, Ofgem may reduce the grant amount or close applications early, as happened with the Renewable Heat Incentive. Apply as soon as your property is ready.
