Grant Funding

The Boiler Upgrade Scheme (BUS), is a government grant for replacing a fossil-fuel heating system with a heat pump. Ofgem administers it, and the grant is applied as a discount on your installation cost, so you don’t receive cash directly. The standard amounts are:

  • Air-to-water, ground source or water source heat pump: £7,500
  • Air-to-air heat pump: £2,500, added in April 2026 after the scheme was overhauled.

You don’t apply yourself. Installers who are MCS certified can apply for and redeem the vouchers on your behalf. The scheme is in England and Wales only, so Scotland has its own schemes.

The £9,000 off-gas uplift

From 21 July 2026 to 31 March 2027, eligible off-gas-grid properties can get a £9,000 grant for air source or ground source heat pumps.

Warning: the £9,000 rate ends on 31 March 2027

After that date, the rate is expected to fall back to £7,500. Several things make it worth acting early:

  • Installers need time to survey, quote and schedule, and one source notes that a heat pump installation isn’t something you can arrange overnight.
  • Some sources also report that VAT relief on heat pump installation ends at the same time.