Homeowners in England and Wales with an income under £31,000 are eligible for the full £7,500 Boiler Upgrade Scheme grant in 2026, provided they replace a fossil-fuel heating system with an air source or ground source heat pump (GOV.UK, 2026). The grant amount increased from £5,000 to £7,500 in October 2023 and remains at that level for 2026.
Eligibility depends on the property type and the existing heating system. The grant covers the installation of an air source heat pump (ASHP) or ground source heat pump (GSHP) in an existing home. New-build properties are not eligible. The property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation, or the installer must confirm these are impractical. The grant is for homeowners, not landlords, unless the property is a self-contained social housing unit.
Owner-occupied homes only
The scheme applies strictly to owner-occupied homes in England and Wales. Private landlords and businesses cannot apply. The property must be your primary residence, not a second home or holiday let (Energy Saving Trust, 2026). The grant is available for single homes, flats, and bungalows. Park homes are also eligible if they meet the EPC requirements. The scheme excludes properties with existing heat pumps, biomass boilers, or solar thermal systems already installed.
Income threshold and benefits
To qualify for the full £7,500, your household income must be under £31,000 per year. This is calculated before tax. If your income is above this threshold, you may still receive a reduced grant of £5,000 for an ASHP or £6,000 for a GSHP (Ofgem, 2026). The income test applies to the total household income, including partners. Benefits such as Pension Credit, Universal Credit, or Child Benefit do not automatically qualify you for the full amount, but they are considered in the means test.
Installer and property requirements
Your installer must be MCS-certified and registered with TrustMark. The heat pump must be on the MCS product database. The property must have an EPC with a rating of D or above, or the installer must confirm that insulation upgrades are not cost-effective (MCS, 2026). You must not have previously received a Boiler Upgrade Scheme grant for the same property. The grant is deducted from the installation cost by the installer, not paid directly to you. Apply through a certified installer, who handles the paperwork with Ofgem.
A worked example
A typical 1930s semi-detached house in Manchester replacing a gas boiler with a 7kW air source heat pump would see total upfront costs of around £12,000 before support, dropping to £4,500 after the full £7,500 Boiler Upgrade Scheme grant in 2026. This household, with an income under £31,000, qualifies for the maximum grant. The Energy Saving Trust estimates annual heating savings of £395 compared to a gas boiler, based on current fuel prices and a well-insulated home with a valid EPC. With 0% VAT on installations until March 2027, the payback period on the net cost is just over 11 years. Over a 25-year heat pump lifespan, total savings reach nearly £9,900, not accounting for future energy price rises. The homeowner must first ensure their EPC has no outstanding loft or cavity wall insulation recommendations, or an installer must confirm these are impractical, as per GOV.UK rules.
| Item | Figure |
|---|---|
| Upfront cost after grants | £4,500 |
| Yearly savings | £395 |
| Payback period | 11.4 years |
| 25-year lifetime savings | £9,875 |
What homeowners often get wrong
The most common mistake is assuming the £7,500 grant is a universal discount for any household replacing a boiler. Many homeowners misunderstand three key eligibility rules that can void their application.
- Assuming the grant covers all heat pump types Households often think any heat pump qualifies, but the scheme only covers air source and ground source heat pumps, not hybrid systems or heat pump-only boilers. Choosing a hybrid heat pump can mean losing the full £7,500 grant, leaving you with higher upfront costs.
- Ignoring the EPC insulation requirements Many homeowners apply without checking their EPC for loft or cavity wall insulation recommendations. If your EPC flags these as outstanding and an installer cannot confirm they are impractical, the grant is refused, wasting time and the £7,500 opportunity.
- Overlooking the owner-occupier rule for flats Leaseholders in flats often assume they can apply individually, but the grant requires the property to be owner-occupied and the freeholder or management company must consent. Applying without this can lead to a rejected claim and a missed grant window.
Quick reference
- Household income must be under £31,000 to qualify for the full £7,500 Boiler Upgrade Scheme grant in 2026.
- The grant is only available for owner-occupied homes in England and Wales, not private rentals or second homes.
- Your property must have a valid Energy Performance Certificate with no outstanding loft or cavity wall insulation recommendations.
- Air source heat pumps typically save £395 per year compared to gas boilers, with a payback period of around 11 years after the grant.
- Applying for the grant without first checking EPC requirements is the most common reason for rejection, costing homeowners the full £7,500.
Frequently Asked Questions
No, private landlords cannot apply. Only self-contained social housing units are eligible, according to GOV.UK.
Your household income must be under £31,000 per year to qualify for the full £7,500 grant, as confirmed by the Energy Saving Trust.
No, new-build properties are not eligible. The grant is for existing homes only, per Ofgem guidelines.
