Boiler Upgrade Scheme today
The government is reportedly preparing to trim the Boiler Upgrade Scheme, which currently takes £7,500 off the cost of an air source heat pump, or £9,000 for eligible oil- or LPG-heated homes. Nothing has been confirmed, and the scheme isn’t expected to close, but the money available could shrink.
Here’s what we know so far, what’s still unclear and what it means if you live in Devon, Cornwall or Somerset.
The reports
What Has Been Reported?
On 12 October, The Guardian said ministers plan to cut “hundreds of millions of pounds” from the scheme’s £2.7bn budget to help pay for higher defence spending. The paper added that the Energy Secretary, Miatta Fahnbulleh, has been asked to find more than £2bn in savings across her department.
The programme “will not be abolished altogether”, according to the same coverage. The government hasn’t confirmed or denied any of this, and the Heat Pump Association has declined to comment on pre-Budget speculation, as Homebuilding noted on 14 October.
The grant now
What the Boiler Upgrade Scheme Offers Today
Until the Budget says otherwise, these are the grants available in England and Wales, according to GOV.UK:
- £7,500 towards an air or ground source heat pump
- An extra £1,500 on either if your home is heated by oil or LPG and has no mains gas connection, making £9,000 in total, until March 2027
To qualify, you need to own the property and be replacing a fossil fuel or electric heating system. Your installer applies for the grant on your behalf and deducts it from your bill, and the heat pump must then be fitted and commissioned within 120 days.
Our guide to the £9,000 heat pump grant for oil and LPG homes explains who qualifies for the higher amount.
Still unclear
What Could Change?
Honestly, nobody outside government knows yet. The reports talk about shrinking the overall budget, not about how that would be done.
A smaller pot could mean fewer grants each year, a lower amount per home or tighter rules on who qualifies.
Devon, Cornwall and Somerset
Why It Matters in the South West
Much of rural Devon and Cornwall is off the gas grid, so many homes still rely on heating oil or LPG. Those households are the ones eligible for the extra £1,500, and that top-up is already due to end in March 2027.
So homes here have more riding on the Boiler Upgrade Scheme than most, and less time to get the full benefit.
Your next steps
What Should You Do If You’re Considering a Heat Pump?
Don’t rush into a decision you aren’t ready for. A heat pump is a big investment, and it should only go ahead after a proper survey and heat loss calculation.
But if you were already planning one for the next year or two, it makes sense to do the groundwork now:
- Book a survey. We’ll look over your home, size the system and give you a quote, so you can move quickly whatever the Budget brings.
- Check which grant applies. If your home runs on oil or LPG with no mains gas, you could be entitled to £9,000 rather than £7,500.
- Make sure the house is ready. Our guide on whether heat pumps work in older homes sets out what a period property needs for one to perform properly.
- Consider generating your own power. Running a heat pump partly on electricity from your own roof via solar panels lowers what it costs to run; see our guide to heat pumps and solar panels.
“If you’ve been weighing up a heat pump, there’s no need to panic, but it’s worth getting the survey done now. That way, whatever the Chancellor announces on 28 October, you’ll know exactly where you stand.”
28 October
What Happens Next?
The Chancellor delivers the Budget on Wednesday 28 October. We’ll update this page with what’s been decided, and explain what it means for anyone planning a heat pump in the South West.
In the meantime, find out more about an air source heat pump installation, including our work on heat pumps in Devon.
Book a free heat pump survey or call us on 01752 916 013.
Your questions answered
Heat Pump Grant FAQs
Is the Boiler Upgrade Scheme ending?
Not according to the latest reports, which say it will be scaled back rather than scrapped. Nothing will be confirmed until the Budget on 28 October.
How much is the heat pump grant in 2026?
£7,500 towards an air or ground source heat pump in England and Wales, or £9,000 if you’re replacing oil or LPG heating in a home with no mains gas connection (until March 2027).
Do I apply for the grant myself?
No. Your MCS-certified installer applies on your behalf and takes the grant off your bill.