£9,000 Heat Pump Grant for Oil-Heated Homes…

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

From 21 July 2026, households in England and Wales that heat with heating oil, coal or LPG can claim £9,000 off 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 around 200,000 eligible homes with 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 in England or Wales. You apply through an MCS-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 on 26 June 2026, with grant values switching on 21 July 2026. The uplift runs alongside the wider Warm Homes Plan, which commits up to £15 billion for 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 our heat pump tariff comparison.

Grant is not a 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 a biomass boiler remain on £5,000 BUS 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 to owner-occupiers and landlords with eligible properties. Landlords need tenant consent where required and should factor MEES/EPC obligations separately , grant availability does not equal compliance. See our landlord grants guide and grants hub.

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 closes 31 December 2026
0% VAT on qualifying energy-saving materials until March 2027

If you are off the gas grid, also read our off-gas-grid heat pump grants guide.

Bottom line

The £9,000 BUS rate is live from 21 July 2026 for 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 assessment or compare current heat pump tariffs.