Boiler Upgrade Scheme 2025/26: Is the Grant Rising to £9,000? What UK Homeowners Need to Know
Is the BUS heat pump grant now £9,000 or still £7,500? We cut through the confusion with confirmed figures, eligibility rules, and what's actually changed in 2026.
Written by Heat Pump Buddy
As of August 2026, the Boiler Upgrade Scheme grant for air source heat pumps remains at £7,500 in England and Wales. There is no confirmed increase to £9,000 for standard domestic air source heat pump installations. The confusion stems from a mix of policy proposals, media speculation, and the separate (higher) grant amount that already exists for ground source heat pumps, which currently sits at £7,500 too but has been the subject of calls to increase.
Where Did the £9,000 Figure Come From?
If you've seen headlines mentioning a £9,000 heat pump grant, you're not imagining things. Several sources over the past year have referenced this figure, and it's worth understanding where it originated.
The £9,000 number has floated around in two main contexts. First, various industry bodies and campaign groups have lobbied the government to raise the BUS grant to £9,000, arguing the current £7,500 doesn't fully close the cost gap between a heat pump and a new gas boiler. Second, some early media reports in late 2025 misinterpreted government consultation documents as confirmed policy changes, when they were actually proposals under review.
Frankly, it's the kind of confusion that puts people off making a decision at all. And that's a shame, because the grant that does exist right now is genuinely substantial.
What Is the Confirmed BUS Grant Amount in 2026?
The Boiler Upgrade Scheme grant stands at £7,500 for both air source heat pumps and ground source heat pumps in 2026. This is a flat discount applied directly to your installation cost, so you never have to pay the full price upfront and wait for a rebate.
The grant was originally £5,000 for air source heat pumps when the scheme launched in 2022, before being increased to £7,500 in October 2023. That increase has held steady through to 2026. For biomass boilers in qualifying rural properties, a separate grant of £5,000 is available.
The scheme is administered by Ofgem, and as of the 2025/26 financial year the government allocated funding for approximately 90,000 vouchers. Uptake has been growing steadily, with Ofgem data showing over 41,000 vouchers redeemed in the 2024/25 financial year alone. But the budget isn't unlimited, so if you're planning to apply, there's no advantage in waiting.
Could the Grant Actually Increase to £9,000?
It's possible, but nothing has been legislated or formally announced. The Clean Heat Market Mechanism, which took effect in April 2025, places obligations on boiler manufacturers to sell a proportion of heat pumps. Some in the industry argue that pairing manufacturer obligations with a higher grant would accelerate the shift away from gas boilers much faster.
The Heat Pump Association publicly called for a £9,000 grant in its 2025 policy submission to DESNZ (the Department for Energy Security and Net Zero). Their argument was straightforward: a typical air source heat pump installation in a three-bedroom semi costs between £10,000 and £14,000, meaning even with £7,500 off, a homeowner still faces a bill of £2,500 to £6,500. A £9,000 grant would make the out-of-pocket cost comparable to or even cheaper than a new gas boiler in many cases.
But calling for something and it actually happening are two very different things. As of today, the government has not confirmed any increase. If an announcement does come, it would most likely take effect from April 2027 at the earliest, aligned with the next financial year.
How the £7,500 BUS Grant Works Right Now
The mechanics of claiming the grant are actually quite straightforward. Here's how it works in practice.
You find an MCS certified installer. They visit your property, design a system, and provide a quote. If you're happy to proceed, the installer applies for a BUS voucher through Ofgem on your behalf. Once the voucher is issued, you have three months to complete the installation. The £7,500 is deducted directly from your bill, so if your quoted price is £11,000, you pay the installer £3,500.
To be eligible, your property must be an existing building in England or Wales (new builds don't qualify). You must be replacing a fossil fuel heating system like a gas, oil, or LPG boiler. The property needs an EPC (Energy Performance Certificate) with no outstanding recommendations for loft or cavity wall insulation, rated at D or above. If your EPC has expired or you don't have one, you'll need to get a new one before applying.
Here's a real example. Sarah in Nottingham had a 15-year-old gas boiler in a 1990s-built detached house. Her installer quoted £12,800 for a 10kW air source heat pump including a new hot water cylinder, underfloor heating modifications in the kitchen, and smart controls. With the £7,500 BUS grant applied, she paid £5,300. Her gas bills had been running about £1,400 a year. On a heat pump with a time-of-use electricity tariff, she's now paying around £900 a year for heating and hot water. That's a payback period of roughly 10 to 11 years on her out-of-pocket cost, before even factoring in the rising trajectory of gas prices.
"I'm Worried the Grant Will Change Before I Get My Installation Done"
This is the single biggest concern we hear from homeowners who are sitting on the fence. And it's a reasonable worry.
The good news is that once your BUS voucher is issued by Ofgem, your £7,500 is ring-fenced. Even if the government changed the grant amount tomorrow, your voucher would be honoured at the value it was issued. So the risk isn't that you'll lose money mid-installation. The risk is that you delay, and either the budget runs out for the current financial year or the rules change in ways you can't predict.
There's also a less obvious risk to waiting. MCS certified installers are busier than ever. The number of accredited installers in the UK has grown to over 3,500 in 2026, but demand has grown faster. During autumn and winter, when everyone suddenly remembers their heating needs upgrading, lead times can stretch to 8 to 12 weeks. If you start the process in summer, you'll typically get a faster installation and may have more choice of installer.
Should you wait for a possible £9,000 grant? Only you can make that call. But consider this: if the increase doesn't happen, you've spent months with an ageing boiler and potentially higher energy bills. And if it does happen, there's no guarantee the eligibility criteria won't tighten at the same time.
Is It Worth Getting a Heat Pump Even Without a Grant Increase?
Yes. The current £7,500 makes heat pumps genuinely competitive with gas boilers for most homeowners, especially if your existing boiler is over 10 years old and you'd be facing a replacement cost anyway.
A new A-rated gas boiler fitted costs between £2,500 and £4,500 depending on complexity. A heat pump after the grant typically costs £3,000 to £6,500 out of pocket. The gap has narrowed enormously. And unlike a gas boiler, a heat pump doesn't burn fossil fuel on site, qualifies you for cheaper green electricity tariffs, and typically lasts 20 to 25 years with minimal maintenance.
Running costs depend heavily on your electricity tariff and how well insulated your home is. On a standard variable tariff, a heat pump in an averagely insulated home might cost roughly the same as gas to run. But on an off-peak or heat pump-specific tariff (several suppliers now offer these, with rates around 10p to 15p per kWh), the savings become meaningful. The government has also been consulting on rebalancing energy levies to make electricity cheaper relative to gas, which would further tip the economics in favour of heat pumps.
Frequently Asked Questions
Is the heat pump grant going up to £9,000 in 2026?
No confirmed increase has been announced as of August 2026. The BUS grant remains at £7,500 for both air source and ground source heat pumps. The £9,000 figure comes from industry lobbying and speculative media reports, not government policy.
How much is the Boiler Upgrade Scheme grant right now?
The grant is £7,500 for air source and ground source heat pumps, and £5,000 for biomass boilers in eligible rural properties. It's applied directly to your installation quote by your MCS certified installer, so you only pay the difference.
Can I get the BUS grant if I already have a heat pump?
No. The scheme is designed to help homeowners switch away from fossil fuel heating. If you already have a heat pump and want to replace it with a newer model, you won't qualify. The property must currently be heated by a gas, oil, LPG, or electric (non-heat pump) system.
How long does it take to get a BUS voucher from Ofgem?
Once your MCS certified installer submits the application, Ofgem typically processes vouchers within 3 to 5 working days. You then have three months from the voucher issue date to complete the installation. If you need more time, your installer can request a one-off extension.
Do I need to pay the £7,500 upfront and claim it back?
No, and this is a common misunderstanding. The £7,500 is deducted from your installer's quote before you pay. Your installer receives the grant money directly from Ofgem after the installation is completed and the paperwork is submitted. You never have to front the full amount.
If you're ready to take the next step, or just want to compare quotes and see what's available in your area, use our directory to find a local MCS certified heat pump installer at heatpumpinstallerdirectory.co.uk. Every installer listed is MCS accredited and qualified to apply for the £7,500 BUS grant on your behalf. Get a few quotes, ask plenty of questions, and make a decision based on real numbers, not headlines.