Last updated: July 2026.

If you heat your home with oil or LPG, from 21 July 2026 you could be eligible for a new £9,000 Government grant towards a heat pump.

Thousands of households across England and Wales will soon receive a leaflet through their door as part of a Government campaign promoting the enhanced Boiler Upgrade Scheme for off-grid homes. The campaign is designed to raise awareness of the increased funding available to homes that currently use heating oil or LPG.

The increased grant is designed to help homeowners move away from fossil fuels and switch to cleaner, more energy-efficient heating, while reducing their reliance on heating oil or LPG.

At IMS Heat Pumps, we’ve been helping homeowners make the switch to renewable heating for almost 30 years. If you’ve received the Government leaflet and are wondering whether a heat pump is right for your home, here’s everything you need to know.

What is the new £9,000 heat pump grant?

The Boiler Upgrade Scheme (BUS) is a Government grant that helps homeowners replace fossil fuel heating systems with low-carbon alternatives.

From 21 July 2026, eligible households that currently heat their homes with heating oil or LPG can receive up to £9,000 towards the cost of installing an air source heat pump.

Unlike many grant schemes, you don’t need to complete complicated paperwork yourself. Your MCS-certified installer applies for the grant on your behalf, and the grant is deducted directly from the installation cost.

How Much Funding Could You Get?

Where do you live?	Funding available
England & Wales: oil or LPG heated homes	Up to £9,000 Boiler Upgrade Scheme grant
England & Wales: other eligible homes	Up to £7,500 Boiler Upgrade Scheme grant
Scotland	Up to £7,500 Home Energy Scotland grant, plus an optional interest-free loan of up to £7,500. Eligible rural and island households may also qualify for a £1,500 rural uplift, increasing the available grant to £9,000.

For more detail, read our complete guide to heat pump funding.

Why has the grant increased?

Many rural and off-grid homes rely on heating oil or LPG, which can leave homeowners more exposed to changes in fossil fuel prices.

The Government has increased funding to encourage more households to move away from fossil fuels and adopt cleaner heating systems that can provide stable, efficient heating for years to come.

Who is eligible for the £9,000 Boiler Upgrade Scheme?

You may qualify if:

• You own your home, or are a private landlord
• Your property is located in England or Wales
• Your home is not connected to the gas grid
• Your current heating system uses heating oil or LPG

If you’re unsure whether your property qualifies, don’t worry. We can check your eligibility as part of your initial survey.

What if I live in Scotland?

Although the £9,000 Boiler Upgrade Scheme applies to eligible properties in England and Wales, homeowners in Scotland can still access generous funding through the Home Energy Scotland Grant and Loan Scheme.

Depending on your circumstances, you may be able to receive:

• Up to £7,500 towards a heat pump
• An optional interest-free loan of up to £7,500
• An additional £1,500 rural and island uplift, increasing the grant available for eligible homes to £9,000

If you’re based in Scotland, our team can explain the funding available in your area and help you understand which scheme is right for your property.

Read our complete guide to heat pump funding.

Can I replace my oil boiler with a heat pump?

In most cases, yes.

One of the biggest myths surrounding heat pumps is that they’re only suitable for modern homes. In reality, we’ve installed heat pumps in a wide range of properties, including:

• Traditional stone cottages
• Victorian and Edwardian homes
• Barn conversions
• Farmhouses
• Detached family homes
• New-build properties

The key isn’t the age of the property. It’s ensuring the system is designed correctly for your home.

Every installation begins with a detailed heat pump installation process, including a full heat loss calculation and bespoke system design to ensure your heat pump performs efficiently and keeps your home comfortable all year round.

Are heat pumps expensive to run?

A well-designed heat pump can provide efficient heating and hot water while using significantly less energy than many people expect.

Running costs depend on several factors, including:

• The insulation levels in your home
• Your existing heating system
• The electricity tariff you choose
• How your system is designed and commissioned

Many homeowners can make further savings by combining a heat pump with a smart electricity tariff and solar panels and battery storage.

Do I need to replace all my radiators?

Not necessarily.

Every home is different. Some existing radiators may already be suitable, while others may need upgrading to help the system operate as efficiently as possible.

During your survey, we’ll assess your entire heating system and explain exactly what, if anything, needs changing.

How do I apply for the grant?

The process is straightforward.

1. Arrange a home survey with an MCS-certified installer.
2. Receive a bespoke system design and quotation.
3. If you decide to proceed, your installer applies for the Boiler Upgrade Scheme grant on your behalf.
4. The grant is deducted directly from your installation cost.

There’s no need for you to submit a separate application.

Why choose IMS Heat Pumps?

Choosing the right installer is just as important as choosing the right heat pump.

At IMS Heat Pumps, we’ve specialised in renewable heating for almost 30 years and have installed systems in homes across the North of England and Scotland.

If you’d like to see examples of our work, take a look at our customer case studies.

We’re proud to be:

• MCS Certified
• TrustMark Registered
• Which? Trusted Traders
• HIES Approved
• Winners of the 2026 ACR & Heat Pump Awards – Domestic Air to Water Heat Pump Project of the Year

Every system we install is individually designed for the property, giving homeowners confidence that their heat pump has been specified correctly from the outset.

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Frequently Asked Questions

Is my home too old for a heat pump?

Probably not. Most homes can have a heat pump. The important thing is designing the system correctly for the property rather than simply replacing the boiler with a heat pump of a similar size.

Do heat pumps work in winter?

Yes. Modern air source heat pumps are designed to operate in UK winters and continue working even when outdoor temperatures fall below freezing.

Is the £9,000 grant available everywhere?

The enhanced £9,000 Boiler Upgrade Scheme grant is available to eligible off-grid properties in England and Wales that currently use heating oil or LPG.

In Scotland, eligible homeowners may be able to access up to £9,000 in grant funding through Home Energy Scotland, including the rural uplift.

Can I combine a heat pump with solar panels?

Absolutely. Many homeowners choose to install solar panels and battery storage alongside a heat pump to generate and store some of the electricity needed to run the system.

How long does installation take?

Every project is different, but most domestic heat pump installations are completed within a few days, depending on the work involved.

We’ll explain the installation programme before work begins so you know exactly what to expect.

Read more of our Heat Pump FAQ

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Thinking about making the switch?

If you’ve received the Government leaflet or you’re simply curious about whether a heat pump could work in your home, we’re here to help.

Our experienced team can:

• Check your eligibility for the Boiler Upgrade Scheme or Home Energy Scotland funding
• Carry out a no-obligation home survey
• Design a heat pump system specifically for your property
• Apply for the relevant grant on your behalf
• Answer any questions you have about replacing your oil or LPG heating

Whether you’re in England or Scotland, our experienced team can explain the funding available, assess your home’s suitability, and design a heat pump system that’s tailored to your property.

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