The Boiler Upgrade Scheme (BUS) is a government grant in England and Wales that helps with the upfront cost of replacing a fossil-fuel heating system with a low-carbon one. In 2026 it offers a fixed grant of £7,500 towards an air-source or ground-source heat pump, and in limited circumstances a grant towards a biomass boiler (typically for rural, off-gas-grid properties where a heat pump isn't suitable).
The key point most people get wrong: it is not a grant for a new gas boiler. The whole purpose of the scheme is to move homes away from gas and oil heating, so a like-for-like gas combi or system boiler swap does not qualify for any BUS funding.
In one line: the Boiler Upgrade Scheme pays £7,500 towards a heat pump (or biomass in some cases) to replace a gas or oil boiler — it does not fund a replacement gas boiler.
The grant amounts in 2026 are fixed and discount-based — they come off the price your installer quotes, rather than being paid to you. Indicative figures:
| Technology | Grant (indicative, 2026) |
|---|---|
| Air-source heat pump | £7,500 |
| Ground-source heat pump (incl. water-source) | £7,500 |
| Biomass boiler (eligible properties only) | £5,000 |
The grant is a contribution, not the full cost. A typical air-source heat pump installation in 2026 still costs the homeowner several thousand pounds after the grant is applied, depending on property size, radiators and how much pipework needs changing. Figures here are indicative ranges for guidance, not a quote.
Eligibility is checked by your installer before you commit, but the main conditions are:
If your EPC flags insulation that hasn't been done, you'll usually need to carry out that work first before the grant can be applied.
You don't apply for the Boiler Upgrade Scheme yourself. Instead:
Because the installer handles the paperwork, it's worth getting more than one MCS-certified quote and comparing the price after the grant, not just the headline figure.
Gas-safety note: removing an old gas boiler and disconnecting it from the gas supply is gas work and must be done by a Gas Safe registered engineer (check the engineer on the Gas Safe Register). "CORGI" was the old gas registration body but it was replaced by Gas Safe in 2009 — always use Gas Safe today. The heat pump itself is installed by your MCS contractor.
If your existing gas boiler has simply failed and you want another gas boiler, the Boiler Upgrade Scheme does not apply — there is no government grant for a straight gas-boiler replacement. In that situation you're looking at standard installation costs, and the decision is really about whether to repair, replace like-for-like, or switch to a heat pump and claim the grant.
A few practical differences to weigh up:
For ballpark numbers on the gas-boiler route, see our guide to boiler replacement cost.
The Boiler Upgrade Scheme covers England and Wales only. Scotland runs its own support through Home Energy Scotland, which offers grants and interest-free loans for renewable heating — the amounts and rules differ, so check the Scottish scheme directly. Northern Ireland has separate arrangements again. Don't assume the £7,500 figure applies UK-wide.
If you switch to a heat pump, a traditional gas boiler cover policy may no longer be the right product — some insurers offer dedicated heat-pump or renewable-heating cover instead. If you're staying on gas for now, it's still worth checking what a policy includes. Our explainer on what boiler cover is and the question of whether boiler cover is worth it can help you decide.
If a heat pump isn't right for your home yet, compare boiler cover so a breakdown doesn't catch you out this winter.
Compare boiler coverNo. The scheme only funds low-carbon heating — heat pumps and, in some cases, biomass. A replacement gas boiler does not qualify for any BUS grant.
£7,500 towards an air-source or ground-source heat pump, or £5,000 towards an eligible biomass boiler. These are indicative figures applied as a discount on your installer's quote.
No — an MCS-certified installer applies on your behalf and deducts the grant from your quote. They then claim it back from the scheme administrator.
You generally need a valid EPC with no outstanding loft or cavity-wall insulation recommendations. Heat pumps work best in well-insulated homes, so any flagged insulation usually needs doing first.
No. BUS covers England and Wales. Scotland has separate support via Home Energy Scotland, and Northern Ireland has its own arrangements.
Disconnecting an old gas boiler is gas work and must be done by a Gas Safe registered engineer. Always check the engineer is listed on the Gas Safe Register before any work begins.
This article is general information, not financial or technical advice. Grant amounts and eligibility rules can change — check the current scheme details before committing. Boiler Cover UK compares a selected panel of providers, not the whole market, and may earn commission.