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:
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.