Heat Pumps, Grants and the Boiler Upgrade Scheme in 2026: What's Actually Changed

Short answer: the standard Boiler Upgrade Scheme grant is £7,500 towards a heat pump, with a temporary £9,000 grant for off-gas-grid homes currently heated by oil or LPG, running until 31 March 2027. Gas boiler replacements in existing homes remain permitted — nothing has been banned.

The Boiler Upgrade Scheme, in plain terms

Homeowners in England and Wales can currently get up to £7,500 off the cost of an air or ground source heat pump through the Boiler Upgrade Scheme, and a separate £2,500 grant is available for air-to-air heat pumps, which heat and cool a home but don't provide hot water. From 21 July 2026 until 31 March 2027, that grant rises to £9,000 for eligible off-gas-grid properties currently heated by oil or LPG — a temporary uplift aimed at homes with the most carbon-intensive heating. Your installer, who needs to be MCS-certified, applies the grant on your behalf and deducts it from the quoted price upfront, so you're not paying it and waiting to be reimbursed.

Who it actually suits

Heat pumps work best in reasonably well-insulated homes with either a wet radiator or underfloor system that can run effectively at lower flow temperatures. Older, poorly insulated properties usually need some fabric improvements first — loft insulation, draught-proofing — for a heat pump to perform well and keep running costs sensible. It's worth an honest survey before committing either way, rather than assuming the grant alone makes the decision for you.

The Future Homes Standard — and what it doesn't change for you

The Future Homes Standard, published by government in March 2026, requires new homes to produce at least 75% lower carbon emissions than the 2013 standard, effectively ruling out gas boilers in new-build properties and requiring solar PV as standard once it takes full effect. It applies to new dwellings, with a transition timetable running through to March 2028. If you already live in your home, this doesn't require you to retrofit solar panels or rip out a working gas boiler — replacing a gas boiler with another gas boiler in an existing home remains permitted. It matters most if you're planning a genuine new build, or extending in a way that could later be classed as a new dwelling — worth raising with your designer at the planning stage.

Where this leaves most homeowners right now

• Existing gas boiler broken or ageing: like-for-like replacement is still straightforward and compliant
• Off oil or LPG, no mains gas: the temporary £9,000 grant makes a heat pump switch worth a proper look before it ends in March 2027
• Planning a new build or eligible extension: heat pumps and solar PV need factoring into the design from the outset, not bolted on afterwards

See our winter boiler checklist if you're keeping your current system running this year, or get in touch for a straightforward assessment of what suits your property.

Regulations, certification requirements and grant limits referenced here are correct at the time of publication and are reviewed and updated from time to time by government and local authorities. Always confirm the current position with a qualified, registered professional or your local authority before relying on it.