A clear 2026 guide to the latest Boiler Upgrade Scheme grant values, including the new air to air heat pump category. It explains how BUS, the Warm Homes Local Grant and the Warm Homes Plan fit together, and what homeowners should check before asking for quotes.
TheBoiler Upgrade Schemechanged in April 2026, and the headline is simple. The main £7,500 support for air to water heat pumps is still there, ground source heat pumps still receive £7,500, biomass boilers still receive £5,000 where they meet the rural and off gas grid rules, and air to air heat pumps now have a separate £2,500 grant category.
That matters because many homeowners are trying to work out whether 2026 is the right year to replace a gas boiler, oil boiler, LPG system, electric heating or older storage heaters. It also matters because theBoiler Upgrade Schemenow sits alongside theWarm Homes Planand theWarm Homes Local Grant, rather than replacing them.
The right route depends on your property, your income, your heating system, yourEPC, your location and the type ofheat pumpbeing considered. A household that can afford the remaining cost may use theBoiler Upgrade Scheme. A low income household in England with an EPC of D, E, F or G may be better suited to theWarm Homes Local Grant. A homeowner who is not eligible for grant support may later use low or zero interest finance under theWarm Homes Planas that support develops.
This guide explains what changed, what each grant is worth, which route to check first, and what to prepare before speaking to an installer.
What changed in April 2026
GOV.UK updated the approvedBoiler Upgrade Schemegrant categories and values on 5 May 2026. The new grant values apply from 28 April 2026.
The approved categories now include air to water heat pumps, air to air heat pumps, ground source heat pumps and biomass boilers. The approved grant values are £7,500 for an air to waterheat pump, £2,500 for anair to air heat pump, £7,500 for a ground source heat pump and £5,000 for a biomass boiler.
The important change for many households is theair to air heat pumpcategory. Air to air systems heat rooms directly using indoor units rather than wet radiators. They can be useful in electrically heated homes, flats, smaller properties, open plan spaces and homes where a full wet central heating retrofit would be disruptive.
The £2,500 value is lower than the £7,500 air to water grant because the system type and installation scope are usually different. It should not be read as a sign that air to air is always second best. It simply means the support level is different.
The 2026Boiler Upgrade Schemegrant values
The values now approved by GOV.UK
- Air to waterheat pump, £7,500
- Air to air heat pump, £2,500
- Ground sourceheat pump, £7,500
- Biomass boiler, £5,000
An air to waterheat pumpis the familiar outdoor unit that connects into a wet central heating system. It normally feeds radiators, underfloor heating and a hot water cylinder. This is the most common replacement route for homes moving from a gas boiler, oil boiler or LPG boiler.
Anair to air heat pumpuses an outdoor unit and one or more indoor fan units. It provides warm air rather than hot water through radiators. Some systems can also provide cooling, but the grant should be considered as support for low carbon space heating rather than as an air conditioning subsidy.
A ground sourceheat pumpuses pipework in the ground to collect heat. It can be very efficient, but the installation is usually more involved because it needs ground loops or boreholes.
A biomass boiler burns eligible biomass fuel and has tighter eligibility rules. GOV.UK says a biomass boiler grant is only available where the property is off the gas grid, in a rural location and the boiler has an emissions certificate showing that polluting emissions are kept to a minimum.
Who should look at theBoiler Upgrade Schemefirst
The best fit for owner funded projects
TheBoiler Upgrade Schemeis usually the first place to look if you own a property in England or Wales and want to replace an existing fossil fuel heating system with aheat pump.
It can suit homeowners who do not qualify for low income grant funding but still want upfront support. It can also suitlandlordswith eligible privately rented homes, although the system still needs to meet the scheme rules and the property must be suitable.
The grant is not paid directly to you as a cash payment. The installer applies for the voucher and takes the grant value off the quote. That means the installer must be eligible, the product must be eligible and the paperwork must be correct before the voucher is redeemed.
This is why a very cheap quote from an uncertified installer is not a like for like comparison. If the installation cannot produce the right certificate and scheme documentation, it may not qualify.
Who should check theWarm Homes Local Grantfirst
TheWarm Homes Local Grantis different. It is only available in England, and it is aimed at low income households, households getting certain benefits, or households in certain postcode areas.
GOV.UK says the home must be in England, privately owned, either by the occupier or the landlord, and have anEPCrating of D, E, F or G. Household income must usually be £36,000 a year or less, although some households can still be eligible through postcode or benefit routes.
If you qualify and your council has funding available, the council arranges a survey and agrees which improvements are suitable. GOV.UK lists possible measures includingwall insulation,loft insulation,underfloor insulation, air source heat pumps,smart controlsandsolar panels.
The key point is that the council organises and pays for the agreed work. GOV.UK says the household does not need to pay for the improvement work agreed under the scheme.
Why the council route can be stronger
For a household on a low income, that can make theWarm Homes Local Grantmore useful than theBoiler Upgrade Scheme. A £7,500heat pumpgrant is valuable, but it may still leave a remaining contribution. A council funded package can deal with insulation, controls and heating together where the property qualifies.
How theWarm Homes Planfits in
TheWarm Homes Planis the wider government programme for improving homes and reducing energy bills. GOV.UK says it includes support through theWarm Homes Local Grantfor low income households in England withEPCratings below band C.
TheWarm Homes Planalso refers to low and zero interest consumer loans and wider finance for the home upgrade sector. That means the 2026 picture is not just grant or no grant. It is a mix of fully funded help for eligible households, voucher support through theBoiler Upgrade Schemeand finance support for households outside the low income route.
For homeowners, the practical message is to check grant eligibility before signing a private finance agreement. If your home isEPCD, E, F or G and your household may meet the income, benefit or postcode route, check theWarm Homes Local Grantfirst.
What theBoiler Upgrade Schemedoes not solve on its own
TheBoiler Upgrade Schemehelps with the capital cost of theheat pump, but it does not remove the need for a good design.
Energy Saving Trust says the typical cost of installing anair source heat pumpis around £11,000, and that costs vary byheat pumpsize, property size, whether the property is new or existing, and whether radiators need upgrading.
That means a £7,500 grant can reduce the headline price substantially, but it does not make every installation automatically cheap. A home that needs a new hot water cylinder, larger radiators, pipework changes, electrical work or fabric improvements can still have a meaningful remaining cost.
This is also why the lowest quote is not always the best quote. A system that is undersized, poorly controlled or installed without enough emitter capacity may be cheaper on day one but more expensive to live with.
Why design quality matters in 2026
MCS updated itsheat pumpdesign standard in December 2025. The current MIS 3005 D standard includes air to air heat pumps and sets design responsibilities for certified contractors.
The standard saysheat pumpsystems can serve space heating and domestic hot water, and it covers categories including ground and water source systems, air source systems, exhaust air systems, gas absorption systems, solar assisted systems, domestic hot water heat pumps and hybrid systems.
It also says an installation must be registered on the MCS Installation Database no later than 10 working days after commissioning, with an MCS certificate generated and sent to the customer for the handover pack.
That certificate matters because it is part of proving the installation was completed under the recognised scheme. It can also matter later for warranty, property sale documents, tariff eligibility and consumer protection.
Running costs still depend on the tariff
The grant reduces installation cost. It does not set the running cost.
Ofgem says the price cap from 1 April to 30 June 2026 is £1,641 a year for a typical household paying by Direct Debit. The average electricity unit rate is 24.67p per kWh and the average gas unit rate is 5.74p per kWh for that period.
This electricity to gas price gap is whyheat pumprunning costs can vary. Energy Saving Trust says heat pump running costs depend on whether radiators are appropriately sized, the electricity tariff and how the heat pump is controlled.
A well designedheat pumpcan turn one unit of electricity into several units of heat, but it still needs the right flow temperature, controls and usage pattern. In many homes, a heat pump tariff can improve the case further by shifting some running time into cheaper periods.
Air to water or air to air
The new 2026 grant values make this question more common.
Air to water is usually the stronger fit where the home already has a wet radiator system, a suitable hot water cylinder location and a need for whole house heating and hot water.
Air to air can be worth considering where the home is electrically heated, lacks a wet central heating system, has open plan rooms, needs room based heating, or would face expensive disruption from new radiators and pipework.
The right answer is property specific. Air to air does not normally provide domestic hot water, so a separate hot water solution may be needed. Air to water is broader, but the installation can be more involved.
The grant difference matters, but it should not be the only factor. A £7,500 grant on the wrong system is still a poor decision. A £2,500 grant on the right system can be better than forcing a property into a design that does not fit.
Biomass boiler grants are narrower thanheat pumpgrants
The £5,000 biomass boiler grant is still available, but it is not a general boiler replacement grant.
The rural and off gas grid test
GOV.UK says biomass boiler support requires the property to be off the gas grid, in a rural location, and fitted with a boiler that has an emissions certificate showing that polluting emissions are kept to a minimum.
You cannot assume a rural home qualifies just because it has oil or LPG. You also need to consider fuel storage, delivery access, maintenance, emissions, local planning and whether aheat pumpcould be a better long term route.
For many homes, especially where insulation can be improved, aheat pumpwill be the first option to compare.
What to prepare before asking for quotes
- Your currentEPCrating if you have one
- Your current heating fuel and boiler age
- Your annual electricity and fuel use from bills
- Photos of radiators, hot water cylinder and outdoor space
- Details of loft, wall and floor insulation
- Whether the property is privately owned, rented or social housing
- Whether household income, benefits or postcode may fit theWarm Homes Local Grant
- Any planning constraints, such as conservation area status
This information helps the installer or adviser point you towards the right route before design work starts.
It also reduces wasted time. If the household clearly fits theWarm Homes Local Grant, it may be better to start through the council route. If the property is not eligible for that grant but is a goodheat pumpcandidate, theBoiler Upgrade Schememay be the right route.
Common mistakes to avoid
- Assuming the £7,500 grant covers the full installation
- Assuming everyheat pumptype gets the same grant
- Ignoring the new £2,500 air to air grant category
- Comparing quotes without checking what is included
- Choosing a system before checking insulation and radiator capacity
- Forgetting that theWarm Homes Local Grantmay cover a wider package
- Proceeding without checking the installer is eligible for the scheme
- Treating the grant as more important than comfort, noise, control and running cost
The best grant is the one attached to the right design. A grant should make a good project more affordable. It should not be used to justify a poor fit.
Howlandlordsshould think about the 2026 changes
Landlordsneed to look at both grant eligibility and property strategy.
A privately rented home may be eligible for theWarm Homes Local Grantwhere the household and property meet the rules and the landlord agrees to the work. TheBoiler Upgrade Schemecan also support eligible private properties, but social housing is excluded from the scheme.
Forlandlords, the decision is not just about heating. It is also aboutEPCrisk, tenant comfort, future regulation, void periods, maintenance and property value. A well plannedheat pumpor insulation package can reduce exposure to future energy performance requirements, but a rushed installation can create tenant complaints and higher running costs.
The first step is to review theEPC, the current heating system and any recommended insulation measures. Heating should not be considered in isolation.
The bottom line for 2026
TheBoiler Upgrade Schemeis still one of the strongestheat pumpsupport routes in England and Wales. The £7,500 grants for air to water and ground source heat pumps remain central, and the new £2,500 air to air category makes the scheme relevant to more property types.
TheWarm Homes Local Grantis the route to check first for low income households in England withEPCD, E, F or G homes. It can support insulation, heat pumps,smart controlsandsolar panels, with councils organising and paying for agreed work where funding is available.
TheWarm Homes Planis the wider framework that connects these grants with future finance support and a broader push to improve homes.
For most households, the next step is not to pick aheat pumpfrom a brochure. It is to check eligibility, confirm the property condition, compare the grant routes and insist on a proper design before committing.
