The UK government has announced a temporary increase to the Boiler Upgrade Scheme (BUS), giving more households the opportunity to move away from expensive fossil fuel heating systems and reduce long-term energy costs.
In response to ongoing energy price uncertainty linked to recent conflicts in the Middle East, homeowners in England and Wales who currently use oil or LPG heating can now receive a £9,000 government grant towards installing a heat pump. That’s a £1,500 increase from the standard Boiler Upgrade Scheme funding.
For many rural and off-grid households the new heat pump grant increase could make switching to a low-carbon heating system more affordable than ever before.
How Do I Get the £9,000 BUS Grant?
The normal BUS eligibility rules still apply to both the £7,500 and £9,000 versions, but you’re likely to be eligible if:
- You own the property
- The property is in England or Wales
- You’re moving from fossil-fuel heating to a low-carbon system, like an air-source heat pump
- £9,000 is available when you switch from LPG or oil heating
- £7,500 is available when you switch from direct electric heating or other fossil fuels like gas
As an MCS-certified installer, Cinergi can check your eligibility and take care of the BUS grant application for you.
When is the £9,000 BUS grant available?
Our source at Ofgem has indicated that the BUS grant uplift will be available for installations carried out from July 2026. It’s currently available for this financial year only, which ends in March 2027. That means now’s the time to start planning.
The process of designing and preparing a heat pump installation can take several weeks. During that time Cinergi will assess your home’s suitability and carry out your heat loss survey. This survey is an essential first step towards installing a heat pump. It measures how much heat your home loses and determines the right size and design for your heat pump. We’ll then be able to provide a full quote and design proposal. When you decide to go ahead, your installation can be booked in for July onwards, when the grant can be claimed.
If you’re considering making the switch to a heat pump, get in touch to find out how your home can benefit from a heat pump and for a free heat loss survey,
Why has the BUS grant amount changed?
Rural, off-grid homes have been particularly hardest hit by volatile pricing and poor continuity of supply. Many of these households have felt the sharp end of fuel price swings, especially when global events like the conflicts in the Middle East push costs up quickly.
The changes have been introduced as part of wider action by the Department for Energy Security and Net Zero to reduce the UK’s consumer exposure to global energy price shocks.
Prime Minister Keir Starmer recently emphasised the urgency of the move, stating:
“When global gas prices spike, people here shouldn’t be picking up the tab.”
That lack of control on oil prices and supply is one of the biggest reasons the government is prioritising oil and LPG homes in England and Wales.
What this Change Means For Oil and LPG Homeowners
The change in the Boiler Upgrade Scheme means the following:
1. Low installation costs
There’s never been a better time to switch to a heat pump. If you currently heat your home with oil or LPG, the new BUS grant uplift makes installing a heat pump much more affordable by reducing your upfront costs.
2. You Can Save About £650 Per Year on Energy Bills: Low Running Costs
The biggest savings on energy bills come from switching to a heat pump. Nesta estimates that a medium-sized oil-heated home could save over £650 per year by switching to a heat pump. Your actual savings will depend on your home’s size, insulation, radiator setup, hot water use, and system design.
3. You Can Future Proof Your Home
Switching from oil or LPG to a heat pump can significantly reduce your home’s carbon emissions. The Centre for Alternative Technology (CAT) notes, “Carbon emissions from using a heat pump are already about 80% less.” Heat pumps use electricity and are much more efficient at turning energy into heat. As the UK electricity grid becomes cleaner, electric heating becomes a stronger long-term option.
4. You Protect Yourself From Oil and LPG Price Volatility and Disrupted Supply
Oil and LPG prices can change drastically. Unlike gas and electricity, which are regulated under the government energy price cap and reviewed every three months, oil prices can spike almost instantly. By switching to a heat pump, you reduce your reliance on delivered fuels and exposure to the extreme price volatility that comes with oil and LPG heating. While electricity prices can still rise, changes are generally less immediate and less drastic than sudden oil price spikes.
5. No Risk of Leaks
Oil and LPG use storage tanks and can leak. With a heat pump, there’s no tank. That means no risk of fuel leaks, no emergency top-ups, and no watching the gauge when the weather turns cold. You get more peace of mind.
6. Greater Energy Independence
Heat pumps can work well with solar panels and battery storage. This pairing can help you use more of the energy you generate at home and save money all year round.
FAQs
Do Gas-Heated Homes Qualify for the £9,000 BUS Grant?
No. But most gas-heated homes are still eligible for the £7,500 BUS grant when switching to a heat pump.
Can a Heat Pump Cut Energy Bills?
Yes, it can. Nesta estimates that a medium-sized oil-heated home could save over £650 per year by switching to a heat pump, although savings vary by property and system design. Some homes may benefit from basic energy-efficiency measures to support heat pump performance. Note that this change sits alongside wider clean heat schemes, such as the Warm Homes Plan, aimed at helping homeowners move away from fossil-fuel heating cost-efficiently.
Can Solar and Battery Storage Work with a Heat Pump?
Yes. Solar panels and battery storage can work alongside an air-source or ground-source heat pump to help you lower your energy bills. Generating your own energy from solar panels can help power your heat pump, and a battery, combined with the right tariff, can store cheap energy to power your heat pump when you need it. Battery storage is a great way to save money on your bills, especially during the winter months.
Sources
- Centre for Alternative Technology (CAT). (n.d.). Heat pumps. https://cat.org.uk/info-resources/free-information-service/energy/heat-pumps/
- Nesta. (2026, April 21). What does the UK government’s heat pump grant actually mean for oil-using households’ bills? https://www.nesta.org.uk/blog/what-does-the-uk-governments-heat-pump-grant-actually-mean-for-oil-using-households-bills/
