The Boiler Upgrade Scheme, explained
The Boiler Upgrade Scheme is a government grant in England and Wales that helps with the cost of replacing a fossil fuel heating system with a heat pump or a biomass boiler. It is run by Ofgem, and the grant is claimed by an MCS-certified installer rather than paid to you directly. This page explains what the scheme covers, who can apply and what it does not fund.
How much the grant is worth
GOV.UK currently lists four grant values. There is £7,500 towards an air source heat pump and £7,500 towards a ground source heat pump, which includes water source heat pumps and those on shared ground loops. A biomass boiler attracts £5,000, and an air-to-air heat pump, which heats and cools a room but does not produce hot water, attracts £2,500. On top of that, an extra £1,500 is available for an air source or ground source heat pump where the property is heated by oil or LPG and has no mains gas connection. That takes the total to £9,000 for those properties, and the uplift runs until March 2027. Grant values are set by government and can change, so check GOV.UK before you make any decisions.
Who can apply and which properties qualify
To be eligible you must own the property. That includes a business premises, a second home or a property you let to tenants, which also means tenants cannot apply themselves. You must be replacing a fossil fuel heating system such as oil, gas, electric or LPG. Most new build properties are excluded, as is social housing and any property already receiving government funding towards a heat pump or biomass boiler. Biomass has tighter rules again: the property must be off the gas grid and in a rural location, the boiler needs an emissions certificate showing polluting emissions are kept to a minimum, and self-build properties are not eligible. There is also a timing rule. The heat pump has to be commissioned and installed within 120 days of the grant application, or it will not qualify.
What the scheme does not cover
This is the point that catches people out most often. The Boiler Upgrade Scheme funds a move away from fossil fuel heating. It does not fund a replacement gas boiler. If your gas boiler has failed and you want another gas boiler, the BUS grant is not the route, however efficient the new appliance happens to be. The scheme is also separate from other government energy programmes aimed at insulation or at households on qualifying benefits. Those have their own rules, their own funding and their own application routes, and confusing one with another tends to waste time. If you are weighing a heat pump against a new gas boiler, read the GOV.UK guidance in full and get quotes for both, so you are comparing real figures for your own home.
Spreading the cost
You do not have to pay for a new boiler all at once. Finance is available through Novuna Personal Finance, subject to status and a credit check, with a minimum 20% deposit and a 14-day cooling-off period. The available terms, APRs and full representative examples are set out on our finance page, and we will run the figures for your quote before you commit.
Common questions
How much is the Boiler Upgrade Scheme grant?
GOV.UK lists £7,500 towards an air source heat pump, £7,500 towards a ground source heat pump including water source and shared ground loops, £5,000 towards a biomass boiler and £2,500 towards an air-to-air heat pump. An extra £1,500 is available for an air source or ground source heat pump where the property is heated by oil or LPG and has no mains gas connection, which runs until March 2027. Figures can change, so check GOV.UK for the current position.
Who actually applies for the grant?
The scheme is installer-led. An installer certified under the Microgeneration Certification Scheme applies for the voucher on the property owner's behalf and the grant value is taken off the installation cost. You are asked to give consent and verify your identity as part of that process. Always confirm directly with a company that it holds current MCS certification for the technology it is quoting on.
Is the scheme available in Liverpool and across Merseyside?
Yes. The Boiler Upgrade Scheme covers England and Wales, so properties in Liverpool, the Wirral, Sefton, St Helens and Knowsley fall within scope if they meet the eligibility conditions. Scotland and Northern Ireland run their own separate schemes with different rules and different funding, so guidance written for those nations will not apply here.
When does the Boiler Upgrade Scheme end?
The scheme was originally due to close in 2025, was extended to 2028, and regulations made in 2026 extended its operation to 2030. The higher grant for off gas grid oil and LPG properties is a separate, shorter arrangement that runs until March 2027. Because the closing arrangements have already been revised several times, check GOV.UK for the position at the time you are reading this.
Can a tenant apply for the grant?
No. Eligibility rests with the person who owns the property, which includes landlords letting to tenants, owners of second homes and businesses. If you rent your home and would like a heat pump considered, the conversation needs to start with your landlord, as the application and the property eligibility both sit with them.
Is this the same as other government energy grants?
No. The Boiler Upgrade Scheme is its own scheme, with its own eligibility rules, its own funding and its own application route through an MCS-certified installer. Other government programmes address insulation or target households on qualifying benefits, and they are administered separately. Treating them as interchangeable is a common source of confusion, so check the rules for the specific scheme you have in mind.
Can I spread the cost?
Yes. Finance is available through Novuna Personal Finance, subject to status and a credit check, with a minimum 20% deposit and a 14-day cooling-off period. You will find the terms, APRs and representative examples on our finance page, and we can talk the monthly figures through against your actual quote.
Talk it through before you commit
If you are weighing low-carbon heating against a new gas boiler, we are glad to talk it through without pressure. For the grant itself, GOV.UK holds the current rules; the claim must be made by an MCS-certified installer, which we are, so we handle that part for you. For gas boiler work anywhere in Merseyside, call 0151 440 2000 and we will arrange a survey.
