Boiler Upgrade Scheme 2026: the £7,500 heat pump grant explained

If you are thinking about replacing your gas boiler with a heat pump, the government's Boiler Upgrade Scheme can take a large amount off the cost. Here is how it works in 2026, based on the Energy Saving Trust's current guidance.

How much is the grant?

• Air source heat pump: £7,500.

• Ground source or water source heat pump: £7,500.

• Air-to-air heat pump: £2,500.

• Biomass boiler: £5,000, for rural homes off the gas grid only.

For homes that currently heat with oil or LPG, a temporary boost raises the heat pump grant to £9,000 between July 2026 and March 2027.

Who can apply?

• You must own the home, in England or Wales.

• You must be replacing a fossil fuel system, such as a gas or oil boiler, or direct electric heating.

• New builds are normally not eligible.

• Your installer must be MCS certified and a member of an approved consumer code.

How the grant is paid

You do not apply yourself. Your installer applies on your behalf and takes the grant off your quote, so you only pay the difference.

Is a heat pump right for your home?

A heat pump works best in a home that holds its heat. Before you commit, ask for a proper heat loss survey, room by room. It will show whether your existing radiators are big enough to run at the lower flow temperatures heat pumps use, or whether some need upgrading. In many Surrey and South West London houses, improving loft insulation and draught-proofing first makes a noticeable difference.

Questions to ask any installer

• Are you MCS certified, and can you give me your certificate number?

• Will you do a room-by-room heat loss calculation?

• Which radiators, if any, need replacing?

• Where will the outdoor unit go, and how loud is it at my neighbour's boundary?

• What will my hot water cylinder and controls look like?

Talk to us about heat pumps

The Essential Connection carries out heat loss surveys and heat pump installation and servicing across Walton-on-Thames, Weybridge, Cobham, Esher and South West London. Ask us a question or call 07719 664615.