The UK Government has announced a temporary increase to the Boiler Upgrade Scheme (BUS) grant for eligible homes and small businesses currently heated by oil or LPG.
From 21 July 2026 until 31 March 2027, eligible off-gas-grid properties will be able to receive £9,000 towards the installation of an air source heat pump or ground source heat pump, an increase of £1,500 on the standard £7,500 grant.
Many homes in rural areas rely on heating oil or LPG because they are not connected to the mains gas network. These properties can be more exposed to fluctuating fuel prices and often face higher heating costs.
The temporary grant increase is designed to help more homeowners make the switch from fossil fuels to low-carbon heating systems, reducing reliance on oil and LPG while making heat pumps more affordable.
The increased £9,000 grant is expected to be available for:
Properties heated by mains gas can still access the Boiler Upgrade Scheme but will continue to receive the standard £7,500 grant. Air-to-air heat pumps and biomass boilers are not included in the temporary uplift.
For many households, the Boiler Upgrade Scheme already provides significant support towards the cost of installing a heat pump. The temporary increase means eligible oil and LPG customers could receive an additional £1,500 towards their installation.
Combined with the current 0% VAT available on heat pump installations, this could make switching to renewable heating more affordable than ever.
Find out how you could save even more (link to blog 2).
The Boiler Upgrade Scheme is installer-led, which means homeowners do not apply directly. Instead, your installer applies for the grant on your behalf, and the grant value is deducted from your quotation upfront.
At Menai Heating, we can assess your property’s eligibility, design a system tailored to your home and manage the Boiler Upgrade Scheme application on your behalf.
If you’re currently heating your property with oil or LPG and have been considering a heat pump, now could be an ideal time to start planning your installation ahead of the grant increase.
