£9,000 Heat Pump Grant available for Thousands of UK Households

Thousands of households across England and Wales will be eligible for £9,000 grants to switch to heat pumps, as part of plans to help lower energy bills.

From July 21, the Boiler Upgrade Scheme grant has been increased by 20%, rising from £7,500 to £9,000 for homes that currently use heating oil.

The uplift is targeted at rural households most exposed to volatile fuel prices.

Around 200,000 eligible homes will receive leaflets this week outlining how to claim the funding.

Heat pumps work by extracting energy from the air, ground or water. They transfer heat into a property rather than generating it by burning fuel, making them more efficient to run than traditional fossil fuel systems.

However, installation costs remain high.

The Energy Saving Trust estimates that an air source heat pump costs around £11,000 to install. Ground source systems can range from £29,000 to £57,000, depending on property and ground conditions.

The government argues the increased grant will help bridge this gap for households currently reliant on heating oil.

Prices for heating oil rose sharply earlier in 2026 following disruption to global oil supplies linked to conflict in the Middle East.

To qualify for the scheme, homeowners must own the property they are applying for. They must also be replacing an existing fossil fuel heating system with a heat pump.

Eligible households are required to contact an MCS-certified installer to obtain quotes. The installer then applies for the grant on the homeowner’s behalf, streamlining the application process for consumers.

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.”

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 homegrown electricity in the years ahead.”

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

“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.”