Thousands of households in England and Wales to be eligible for £9,000 of a heat pump – everything we know so far
The Boiler Upgrade Scheme grant is increasing from July
Thousands of homes in England and Wales will be eligible to receive a £9,000 grant to switch to a heat pump this summer, the Government has announced. This is an increase from the previous £7,500 grant that was available to help homes switch from fossil fuel buringing boilers.
Heat pumps are becoming a more popular heating choice due to the fact that they’re a more energy-efficient choice compared to a standard gas boiler, with lower running costs. They’re already hugely popular in countries with colder climates such as Norway, Finland and Sweden.
Heat pumps are powered by electricity rather than fossil fuels such as oil or gas, and this latest increase in the government's boiler upgrade scheme funding is to help rural households in England and Wales make the move to a heat pump and protect them from fossil fuel spikes. Here’s everything you need to know.
The Boiler Upgrade Scheme grant
On 26 June, the Department for Energy Security and Net Zero announced that from 21 July, the Boiler Upgrade Scheme grant is increasing by 20%, from £7,500 to £9,000, to help rural households switch from heating oil to heat pumps.
The Government says this grant will electrify families’ heating, meaning they are protected from future fossil price spikes and providing greater certainty over energy bills. If the latest Price Cap Announcement has left you worried about your energy bills, investing in a heat pump can be a smart choice if you’re looking to make your home more energy efficient and save money in the long run.
Leaflets about the scheme will be posted to 200,00 eligible households across England and Wales this week (week commencing 29 June), providing more information on how to claim the extra funding. You can also check your eligibility via the Gov.uk website, on the Apply for the Boiler Upgrade Scheme page.
‘This government is determined to bring down energy bills, but I know the war in the Middle East has hit households on heating oil especially hard,’ said Minister for Energy Consumers Martin McCluskey.
Sign up to our newsletter for style inspiration, real homes, project and garden advice and shopping know-how
‘We have already taken action to support these households through confirming over £50 million in support for vulnerable customers on heating oil.
‘Now, the Boiler Upgrade Scheme will help thousands of families across England and Wales switch to clean heat to protect them from volatile fossil fuels.’
‘The Boiler Upgrade Scheme continues to play a vital role in supporting households to adopt heat pumps, and this £1,500 uplift will make the transition significantly more affordable for the thousands of oil-heated homes,' says Charlotte Lee, CEO, Heat Pump Association UK.
‘Many of these households have faced considerable price uncertainty in recent months, without the protection of the energy price cap, and this £9,000 grant will help shield families from volatile fossil fuel costs, by using home-grown electricity, in the years ahead.’
If you’ve been considering installing a heat pump, you should check to see if you’re eligible for the Boiler Upgrade Scheme. They are an expensive investment, costing £12,500 on average according to the Boiler Upgrade Scheme statistics. But the new increase in the grant available to certain households makes it a more affordable and accessible option.

Kezia Reynolds joined the Ideal Home team as News Writer in September 2024. After graduating from City, University of London in 2022 with a bachelor’s degree in journalism, Kezia kicked off her career spending two years working on women’s weekly magazines. She is always on the lookout for the latest home news, finding you the best deals and trends - so you don’t miss a thing!