Boiler Upgrade Scheme Overhauled April 2026: Air-to-Air Heat Pumps, £9,000 Grants and EPC Changes Explained

The Boiler Upgrade Scheme (BUS) was significantly overhauled on 28 April 2026, and the changes are bigger than anything we've seen since the scheme launched. Air-to-air heat pumps are now eligible for grants, homeowners replacing oil or LPG boilers in off-gas-grid properties can claim up to £9,000 instead of £7,500, and the old requirement for a valid EPC has been scrapped entirely. If you've been sitting on the fence about switching to a heat pump, these changes are worth understanding properly.

What Actually Changed on 28 April 2026?

The government rolled out three major changes to the BUS in a single update. Each one removes a barrier that previously stopped thousands of homeowners from applying.

Air-to-air heat pumps are now eligible. Before April 2026, only air-to-water and ground-source heat pumps qualified. That ruled out one of the most affordable and straightforward types of heat pump on the market. Now, air-to-air systems installed by an MCS certified installer can receive a BUS grant, opening the door for homeowners who don't have wet radiator systems or who want a simpler installation.

Off-gas-grid homes replacing oil or LPG get £9,000. If your property isn't connected to the mains gas network and you're replacing an oil or LPG boiler, your grant has jumped from £7,500 to £9,000. The government's logic here is sound: these homes tend to have higher heating costs and often need more extensive work to switch to a heat pump.

The EPC requirement has been removed. Previously, you needed a valid Energy Performance Certificate with no outstanding loft or cavity wall insulation recommendations before you could apply. That requirement is now gone. You can apply for the BUS grant without an EPC at all.

How Does the New £9,000 Grant for Off-Gas-Grid Homes Work?

Let's be specific about who qualifies for the higher amount. You need to tick two boxes: your property must not be connected to the gas grid, and your existing heating system must be oil-fired or run on LPG. If you meet both criteria and you're installing an air-to-water, ground-source, or air-to-air heat pump through an MCS certified installer, you can claim £9,000.

Here's a real example. Say you live in a three-bedroom detached house in rural Devon, heated by an oil boiler installed fifteen years ago. A typical air-source heat pump installation might cost around £12,000 to £14,000. With the new £9,000 grant, you'd be looking at an out-of-pocket cost of roughly £3,000 to £5,000. Compare that to the £5,000 to £7,000 you'd have paid under the old £7,500 grant. That's a meaningful difference.

For homes on the gas grid, the grant remains at £7,500 for air-to-water and ground-source heat pumps. That hasn't changed.

Why Are Air-to-Air Heat Pumps Now Eligible for the BUS Grant?

Frankly, this change was overdue. Air-to-air heat pumps have been widely used across Scandinavia and Japan for decades. They're cheaper to install than air-to-water systems, often costing between £5,000 and £10,000 depending on the number of indoor units. And they're highly efficient, with many models delivering a coefficient of performance (COP) above 4 in mild UK conditions.

The catch with air-to-air systems is that they don't heat water. They blow warm air directly into rooms, much like a reverse air conditioning unit. So if you need hot water too, you'll still need an immersion heater, a separate hot water heat pump, or another solution.

But for some homes, particularly flats, park homes, or properties without a wet central heating system, air-to-air makes perfect sense. The BUS grant for air-to-air systems is set at £7,500 for on-gas-grid properties and £9,000 for off-gas-grid homes replacing oil or LPG.

One important detail: the air-to-air system must be installed by an MCS certified installer and the installation itself must be MCS certified. You can't just buy a split unit from a trade supplier and have any electrician fit it. The MCS certification is what triggers the grant payment.

What Does Removing the EPC Requirement Mean for Homeowners?

This is a bigger deal than it might sound. Under the old rules, if you applied for the BUS and your EPC flagged recommended loft insulation or cavity wall insulation, your application would be refused until you'd carried out those measures. That created a frustrating Catch-22 for some homeowners, particularly those in older properties where cavity wall insulation isn't suitable, or where the EPC assessment itself was inaccurate.

From 28 April 2026, you don't need an EPC to apply. Full stop.

Does that mean you should skip insulation altogether? Absolutely not. A heat pump will work harder and cost more to run in a poorly insulated house. Your MCS certified installer should still carry out a proper heat loss assessment and may well recommend insulation improvements. But the absence of an EPC will no longer block your grant application, and that's removed a genuine bottleneck from the process.

The £7,500 BUS Grant: Who Still Gets It and How to Apply

The standard BUS grant of £7,500 is still the main offer for most homeowners. If you're on the gas grid and installing an air-to-water, ground-source, or air-to-air heat pump, £7,500 is what you'll receive. The same applies to off-gas-grid homes that aren't replacing oil or LPG, for instance a property currently using electric storage heaters.

The application process hasn't changed. Your MCS certified installer applies on your behalf through the Ofgem portal. You don't need to fill in a government form yourself. The grant is deducted from your invoice, so you pay the reduced price directly.

A few eligibility points remain the same:

Your property must be in England or Wales (Scotland has its own scheme).
It must be an existing building, not a new build.
You can't have already received a BUS grant on the same property.
The installer must be MCS certified and the installation must be MCS certified.

The scheme is currently funded until March 2028, so there's a decent runway. But uptake has been rising steadily, and government budgets aren't unlimited. If you're planning to apply, don't leave it to the last minute.

"I'm Worried a Heat Pump Won't Heat My Home Properly"

This is the objection that comes up most often, and it deserves a straight answer. A properly sized and installed heat pump will heat your home. The key word there is "properly."

Problems tend to occur when a system is undersized, when radiators haven't been upgraded to handle lower flow temperatures, or when the installer hasn't done a thorough heat loss calculation. A good MCS certified installer will assess your property room by room, check your insulation levels, and specify the right size unit. They'll also tell you honestly if your radiators need upgrading or if you'd benefit from underfloor heating in certain areas.

The data backs this up. The government's Electrification of Heat Demonstration Project, which monitored over 700 heat pump installations across Great Britain, found that the vast majority of households were satisfied with their heating comfort. Heat pumps aren't experimental technology. There are over 250,000 installed in UK homes now, and that number is growing every month.

Have you spoken to anyone in your area who already has a heat pump? It's worth asking around, because most owners will tell you the same thing: once it's set up correctly, it just works.

Frequently Asked Questions

Can I get a £9,000 grant for a heat pump in 2026?

Yes, but only if your property is off the gas grid and you're replacing an oil or LPG boiler. The £9,000 grant applies to air-to-water, ground-source, and air-to-air heat pumps installed by an MCS certified installer. On-gas-grid properties still receive the standard £7,500 grant.

Are air-to-air heat pumps eligible for the Boiler Upgrade Scheme?

Since 28 April 2026, yes. Air-to-air heat pumps now qualify for BUS grants of £7,500 (on-gas-grid) or £9,000 (off-gas-grid replacing oil or LPG). The system must be installed and certified by an MCS certified installer.

Do I still need an EPC to get a heat pump grant?

No. The EPC requirement was removed from the Boiler Upgrade Scheme on 28 April 2026. You can now apply for a BUS grant without having a valid Energy Performance Certificate, and previous EPC recommendations for loft or cavity wall insulation will no longer block your application.

How much does a heat pump cost after the BUS grant in 2026?

A typical air-source heat pump installation costs between £10,000 and £14,000 before the grant. After the £7,500 grant, you'd pay roughly £2,500 to £6,500. Off-gas-grid homeowners replacing oil or LPG pay even less thanks to the £9,000 grant, with out-of-pocket costs potentially as low as £1,000 to £5,000.

How do I apply for the Boiler Upgrade Scheme grant?

You don't apply directly. Your MCS certified installer submits the application through the Ofgem portal on your behalf. The grant is then deducted from your installation invoice, so you only pay the remaining balance. The first step is to find a qualified installer and get a survey booked.

Ready to see what a heat pump would cost for your home after the new grants? Use our directory at heatpumpinstallerdirectory.co.uk to find MCS certified heat pump installers in your area. You can compare local options, check their credentials, and get the process started with a single enquiry.