Thousands of homes will be eligible for £9,000 off a heat pump

Thousands of households on heating oil across England and Wales will be eligible to receive £9,000 to switch to a heat pump this summer, saving them money on their energy bills. 

From 21 July the Boiler Upgrade Scheme grant is being increased by 20%, from £7,500 to £9,000, to help rural households make the move from heating oil to a heat pump.

This will electrify families’ heating, protecting them from fossil fuel price spikes and providing greater certainty over energy bills.

Leaflets will be dropping onto the doormats of 200,000 eligible homes in England and Wales this week with more information on how to claim the extra funding. 

Minister for Energy Consumers Martin McCluskey said  

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.

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 uplift runs alongside measures that the Energy Secretary set out earlier in the year to help cut bills for families and deliver more clean, homegrown power.

The Social Housing Fund will receive a £100 million boost to support the delivery of up to 57,000 solar installations for households in England this financial year. The measures will cut bills by hundreds of pounds and support up to one million homes reach EPC C.

Additionally, to build on the success of Great British Energy’s solar scheme, the government is backing the company to extend support for more rooftop solar installations on a further 100 schools and colleges this year alone.

The Warm Homes Plan, available to all households, will help roll out clean technology to millions, cutting bills and securing thousands of good jobs.

Charlotte Lee, CEO, Heat Pump Association UK, said

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. 

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.

Ian Rippin, CEO at MCS, said 

This uplift is an important step in making heat pumps more accessible to rural households, allowing them to see the benefits the technology can offer.

As the UK’s quality mark for small-scale renewables like heat pumps, our mission is to give everyone confidence in home-grown energy. 

We do this by setting the standards you should always expect from an MCS certified installer and the products they use, while providing robust protections to give you peace of mind in your investment.

Households considering making the switch to a heat pump with the help of the BUS can search for an MCS certified installer near them using our Find an Installer tool.

Matt Copeland, Head of Policy and Public Affairs at National Energy Action says

This is a positive step for households relying on heating oil, who have recently faced the highest and most volatile energy costs. 

Many families will be expecting to ration their heating in the coming winter, living in homes they cannot afford to keep warm, not through choice but constraint. 

Supporting the shift to cleaner heating in these homes can help deliver greater stability and lower bills. 

The real test will be whether this support reaches those most at risk and makes homes genuinely affordable to heat.

Case studies

Catherine, Essex changing from an oil boiler to an air source heat pump as part of a property conversion

Catherine, from Essex, chose to install an air source heat pump as part of a major renovation that transformed her 1950s property into a modern 3-bedroom home. With most of the house effectively rebuilt, it felt like the right moment to move away from an oil boiler and invest in a heat pump.  

Catherine found the process of researching and setting up the system straightforward, with support from a trusted local installer who continues to service it annually. Seven years on, the system has proven reliable and low-maintenance, requiring only occasional repressurising. The heat pump runs quietly in the background, with no noticeable noise, and has “just ticked along nicely,” delivering a dependable, efficient heating solution that aligns with her long-term environmental goals.

Adrian, from Carmarthenshire heat pump brings reliable warmth to an 1800s stone home

When Adrian’s oil boiler reached the end of its life, replacing it would have meant moving the oil tank into the middle of the driveway. With no gas connection he chose a heat pump as the practical alternative for his detached stone house in Carmarthenshire.

“We weren’t eco warriors,” he said. “We had to bite the bullet and look at other options.”

The installation was completed in around 3 days, with a new water tank, pipework and upgraded radiators fitted to help the system work efficiently. The results have been immediate a consistently warm home, easier control through an app, and reliable performance even in freezing weather.

“The house has never been so warm,” Adrian said, explaining that it now stays at a steady 19°C during the day while he works from home.

“We’ve got down to -6°C this winter and it was still warm in the house. The technology is amazing…I would say to go for it.”

Notes to editors

Households can connect with local heat pump owners near them with Nesta and hear about people’s experiences direct.

Adrian, from Carmarthenshire lives in a built-in-1800 stone detached house with attic insulation and do…