The Boiler Upgrade Scheme explained
New: higher grants for oil & LPG homes
The government has increased support for homes using oil and LPG heating, available to off‑gas grid properties in England and Wales.
The grant has gone up by £1,500, taking the total available support to £9,000 for eligible homes.
This is designed to help households that are off the gas grid (often in rural areas) switch to cleaner, low carbon heating and reduce exposure to volatile fossil fuel prices.
The updated scheme is expected to open for applications from July, with at least 28 days’ notice before it goes live.
The higher grant will run until March 2027.
The higher £9,000 grant is expected to open from July (exact date still to be confirmed). If that stays on track, installations happening now should fall within the 120-day window — meaning you’re likely to be eligible.
If you’ve already had a voucher issued, we can revoke and reapply for a new one at the higher grant level once it launches, so you can access the increased funding.
Applications are only eligible where the heat pump was commissioned within 120 days of the application being submitted. As long as your installation falls within this window, we can help.
The government has said that the increased grant can be applied up to 120 days after installation, so it’s best to proceed with your heat pump quote as it normally takes at least a few weeks to do your survey and book your installation date.
If you have an oil or LPG heating system, and your home is eligible for the higher support, we’ll apply it to your price and work through the details as they’re confirmed.
Yes, we can help with this as long as it meets the conditions outlined above.
Get government support for a heat pump
Upgrade your home’s heating system with a heat pump and get government support through the Boiler Upgrade Scheme.
Right now, most homes can get £7,500 off the cost of a heat pump. The government has recently increased support for off-grid homes using oil or LPG heating to £9,000 for eligible homes.
Good to know: the grant is automatically applied to all our quotes, and we take care of all the paperwork for you.
Learn about the grant and how it works:
The Boiler Upgrade Scheme is a grant from the Government offering:
£7,500 off the cost of an air source or ground source heat pump, or (£9,000 if you’re living in an eligible off-grid home replacing oil or LPG heating), or
£5,000 off the cost of a biomass boiler
It aims to encourage homeowners to replace their existing fossil fuel heating system with one that's more efficient and better for the environment.
And unlike other government schemes, there’s no income rules or need to be claiming benefits to be able to apply. As it’s a grant it doesn’t need to be repaid to the government at any point.
So as long as your home is suitable for a heat pump it’s very likely you’ll be able to benefit from the grant.
Homeowners and business owners in England and Wales can apply. If you’re in Scotland, you can apply for a £7,500 grant through the Home Energy Scotland Scheme, with an additional £7,500 available as an interest free loan (or £9,000 if you qualify for a ‘rural’ uplift).
Your heat pump will need to provide both the heating and hot water to your home, and you’ll need to work with an MCS approved installer, like Octopus, who can make sure all of the government’s criteria is taken care of for you.
The good news is that we take care of it all for you!
When you get a heat pump quote with us, we’ll apply the grant to your quote so you’ll only need to pay the remaining amount. We’ll make sure your home is suitable for a heat pump and meets all of the criteria for the Boiler Upgrade Scheme.
Then, when you’ve paid your deposit, we’ll claim the grant on your behalf from Ofgem. It’s that simple.
Unfortunately, if you’re living in a new-build or social housing you’re not eligible for the Boiler Upgrade Scheme.
Likewise, if you’ve been given government funding or support for a heat pump already you can’t apply. But this doesn’t include funding for other energy efficiency upgrades such as insulation, doors and windows.
And it’s important to remember the aim of the scheme is to replace dirty fossil fuel heating systems so funding isn’t available to replace existing low carbon systems. So you’re good to apply if you’re replacing an oil or gas boiler or electric systems, such as electric boilers, storage or panel heaters.
Here’s some things to help you check that your home’s suitable for a heat pump. We’re always on-hand to help with anything you’re unsure about.
Do I need insulation?
Insulating your home is always a good idea, as it means your heat pump will work more efficiently and you’ll benefit from lower running costs.
Generally homes with an EPC Rating of D and above are likely to have at least a couple of types of insulation (wall, loft or double glazing) which means they should be well insulated enough for a heat pump already. If not you might have to insulate before you can get a heat pump. This is something we can help arrange for you.
Do I have enough space for a heat pump?
Here’s a rough guide of the space you’d need:
Outside: You’ll need roughly 1m x 1m x 2m for the heat pump itself. Think of the size of a moped to help you visualise the space you’ll need. The heat pump needs space of around a metre in-front and to each side to breathe. And the heat pump needs to stand on solid ground (not suitable for decking for example).
Inside: You’ll need space for a hot water tank - 2m x 1m x 1m. Think of the size of a modern fridge freezer. Ideally this would be located on the ground or first floor - the closer to the outside the better. But we can use areas such as a garage, outside store or a loft too — but this can impact the efficiency. Check out our FAQs for more information.
Are heat pumps worth the investment?
How much does a heat pump cost to run?
Heat Pump help
One stop shop for all things heat pump
Cosy heat pump customers on the Cosy Octopus tariff saved an average of £200 last year compared to using a gas boiler running at 85% efficiency on our standard variable tariff
This figure is based on the actual energy consumption of all Cosy heat pump customers on a Cosy Octopus tariff between 1 July 2025 and 1 July 2026, using tariff rates at the time.
We compared this to the cost of producing the same amount of heat with a gas boiler operating at 85% efficiency, priced using our Flexible Octopus (standard variable) tariff at the same time.
Savings from gas standing charges were included only for customers who had fully removed their gas supply (less than 3% of customers). Actual savings vary depending on system design, tariff choice, home insulation, and energy use.
Our typical heat pump price is £4,459, which is lower than the national average of £5,600
This is the median post-survey price from all of our heat pump quotes after the £7,500 Boiler Upgrade Scheme has been applied, between 01/09/2025 and 28/02/2026. The national average is taken from the Boiler Upgrade Scheme statistics: April 2026 – median cost of installation Q4 2025.
Cut carbon emissions by 82% with a heat pump
This is the typical reduction in heating carbon emissions using an electric powered heat pump compared to a gas boiler.
The carbon breakdown
Gas CO2 (tonnes per year) - 2.42
Electricity CO2 (tonnes per year) - 0.43
Carbon saving (tonnes per year) - 1.99
Data sources and assumptions
Gas Energy Usage (kWh) 11500 (Ofgem medium use gas usage (Jun 2026))
Heat Pump Efficiency 312% (typical seasonal coefficient of performance from a fleet of Octopus high temperature heat pumps)
Gas Boiler Efficiency 85% (The typical gas boiler efficiency from a BEIS study)
Gas fuel emissions of (gCO2/kWh) 210 (SAP 10.2)
Electricity fuel emissions of (gCO2/kWh) 136 (SAP 10.2)
Based on these sources, heat pumps typically produce lower operational emissions when heating the home than gas boilers.
For more information, explore our Octopus Cosy heat pump fleet performance dashboard.
We're the largest heat pump installer on the Boiler Upgrade Scheme
Based on Octopus benchmarking against Ofgem reports from 2024, and we've continued to grow since.
Our customers love their heat pumps!
- 93% of people say it's the same or more comfortable than their previous boiler
- 87% say it costs the same to run or less
- 83% say it's the same noise or less than the previous boiler
- 90% say it's just as easy or easier to maintain
We survey all our heat pump customers 3 months post-installation to see how they find their heat pump compared to their previous gas boiler. Survey results are taken from a sample of 2,837 customers:
Comfort: 93% of people say it is the same or more comfortable than their previous boiler.
Running Costs: 87% say it costs the same to run or less.
Noise: 83% say it is the same noise or less than the previous boiler.
Maintenance: 90% say it is just as easy or easier to maintain.
A heat pump is around 4x more efficient than a gas boiler
Heat pumps don't generate heat by burning fuel. Instead, they transfer existing heat into your home. This means they can deliver multiple units of heat for each unit of electricity used.
Based on performance data from a fleet of installed Octopus Cosy heat pumps, typical real-world seasonal performance (SPF or SCOP) is around 3.6. This means around 3–4 kWh of heat is delivered for every 1 kWh of electricity used (an effective efficiency of 300–400%). By comparison, typical UK domestic gas boilers operate at around 85% efficiency, delivering approximately 0.85 kWh of heat per 1 kWh of gas used. On this basis, a heat pump can be around 4× more efficient than a typical gas boiler.
All our heat pumps are independently tested by the Building Research Establishment (BRE), with SCOP values published on the Microgeneration Certification Scheme (MCS) product database. Actual efficiency will vary depending on the property, system design, and usage. For more information, explore our Octopus Cosy heat pump fleet performance dashboard.
The UK's most awarded energy supplier
We've won more awards for customer service than anyone else.
Heat pumps give reliable, consistent heating and hot water
The heat pump user survey report by Nesta from May 2023 summarises that "users are highly satisfied with their heat pumps". It states: "People living in England, Scotland and Wales who own their home and use a heat pump to heat it are satisfied that heat pumps are safe, reliable, quiet heat sources that are effective for space heating and producing hot water." Find the full report here.
The Cosy heat pump is quiet
Heat pump sound power levels are verified by an independent, third-party laboratory as part of the testing process for inclusion on the MCS product database. The laboratory verifies the sound power on the A-weighted decibel curve, as A-weighting closely aligns to how humans perceive "loudness".
All heat pumps are measured using EN14511 standards to ensure uniformity across manufacturers and models. Our Cosy 6 heat pump has a verified sound power level lower than many other heat pumps of the same capacity.
Heat pump heating makes the air healthier in your home
Homes with a heat pump emit far less harmful nitrous oxide (NOx) emissions than those with gas boilers and cookers, significantly reducing asthma and other respiratory illnesses. According to the Sustainable Markets Initiative Cleantech Homes report.
A heat pump can add thousands to your property value
Analysis by the Department of Land Economy at the University of Cambridge suggests a 16% value uplift for new-build homes with enough solar and battery storage to eliminate energy bills. A further study of over five million existing properties indicates a 2-3% value increase for existing homes with solar panels or heat pumps (versus like-for-like gas-heated homes), according to the Sustainable Markets Initiative: Cleantech Homes report, 2024.
As of April 2025, the average house price in the UK is £265,497 according to the Land Registry. Therefore, a 2-3% value increase for an average house priced at £265,497 would be between £5,310 and £7,965.
Heat pumps typically last longer than gas boilers
The expected lifespan of a typical gas boiler is 10–15 years. A heat pump typically has a lifespan of 15–20 years, with UK government research indicating an average of around 20 years. Manufacturer Daikin reports similar ranges. Actual lifespan depends on factors such as installation quality, maintenance, usage patterns, and operating conditions.