Oil and LPG homes in England and Wales can get £9,000 off a heat pump from 21 July 2026 via the Boiler Upgrade Scheme. See who qualifies and how to apply.
£9,000 heat pump grant for oil-heated homes: what changed on 21 July 2026
Last updated:23 July 2026
From21 July 2026, households in England and Wales that heat withheating oil, coal or LPGcan claim£9,000off an eligible heat pump through the Boiler Upgrade Scheme (BUS) , a £1,500 uplift on the standard £7,500 grant.
The change targets rural and off-gas-grid homes that face volatile fossil-fuel bills and are often harder to reach with mains gas alternatives. DESNZ says leaflets are being sent to around200,000 eligible homeswith guidance on how to claim.
Quick answer: who gets £9,000?
- Your current heating: Heating oil | BUS grant from 21 Jul 2026:£9,000| Standard rate (most other homes) : £7,500
- Your current heating: LPG | BUS grant from 21 Jul 2026:£9,000| Standard rate (most other homes) : £7,500
- Your current heating: Coal | BUS grant from 21 Jul 2026:£9,000| Standard rate (most other homes) : £7,500
- Your current heating: Mains gas or other | BUS grant from 21 Jul 2026: £7,500 (air-to-water ASHP) | Standard rate (most other homes) : £7,500
- Your current heating: Air-to-air heat pump | BUS grant from 21 Jul 2026: £2,500 | Standard rate (most other homes) : £2,500
Property must be inEngland or Wales. You apply through anMCS-certified installer, who deducts the grant from your quote. You do not apply directly to Ofgem.
Source:GOV.UK grant notice effective 21 July 2026.
Why the uplift now?
Heating-oil households sit outside the energy price cap and have seen sharp bill volatility. The government frames the £9,000 rate as a targeted measure to accelerate clean-heat adoption where fossil-fuel dependence is highest.
DESNZ published the policy on26 June 2026, with grant values switching on21 July 2026. The uplift runs alongside the widerWarm Homes Plan, which commits up to£15 billionfor home upgrades by 2030.
How to claim (step by step)
- Check suitability, air-to-water heat pumps need adequate insulation and space for a cylinder; a survey confirms feasibility.
- Get quotes from MCS installers, compare total installed cost after the grant deduction, not headline grant alone.
- Installer applies for BUS voucher, Ofgem pays the installer on your behalf once work completes.
- Plan running costs, pair the install with a suitable electricity tariff; see ourheat pump tariff comparison.
Grant isnota free installation. You may still pay the balance after the £9,000 deduction, plus any extra works the survey recommends.
£9,000 vs £7,500: worked example
- Item: Typical ASHP install | Oil home (from 21 Jul): £12,000–£15,000 | Mains-gas home : £12,000–£15,000
- Item: BUS grant | Oil home (from 21 Jul): −£9,000 | Mains-gas home : −£7,500
- Item: Indicative balance | Oil home (from 21 Jul): £3,000–£6,000 | Mains-gas home : £4,500–£7,500
Figures are illustrative. Always use installer quotes. Off-gas properties may need additional electrical or cylinder upgrades.
What about biomass boilers?
Off-gas homes replacing oil, LPG or coal with abiomass boilerremain on£5,000BUS support , unchanged by the July uplift. Heat pumps receive the higher rate because they align with net-zero heating policy.
Landlords and tenants
BUS applies toowner-occupiers and landlordswith eligible properties. Landlords need tenant consent where required and should factor MEES/EPC obligations separately , grant availability does not equal compliance. See ourlandlord grants guideandgrants hub.
Related funding
- Warm Homes: Local Grant, fully funded packages for eligible low-income households (EPC D–G), delivered via councils
- ECO4, supplier-led support for qualifying benefit households; scheme closes31 December 2026
- 0% VATon qualifying energy-saving materials untilMarch 2027
If you are off the gas grid, also read ouroff-gas-grid heat pump grants guide.
Bottom line
The £9,000 BUS rate is live from21 July 2026for oil, coal and LPG-heated homes in England and Wales. It is the highest published BUS grant to date for those categories. If you received a leaflet or heat with oil/LPG, get MCS quotes now while installer capacity is available , demand typically spikes after gov announcements.
Next step:Request a heat pump assessmentor comparecurrent heat pump tariffs.
