Key facts
- What: Heat pump grants reduce the cost of replacing gas, oil, LPG, or electric heating with low-carbon heating.
- Who qualifies: BUS is open to property owners in England and Wales with no income test; the Warm Homes: Local Grant (England) can fully fund a heat pump for lower-income households. The Home Upgrade Grant (HUG2) has closed.
- Value: BUS takes £7,500 off an air source or ground source heat pump (£9,000 in oil or LPG homes with no mains gas, until 31 March 2027) or £2,500 off an air-to-air heat pump (in law since 28 April 2026, but it can't be claimed yet: MCS has certified no air-to-air installers so far).
- Deadline: the £9,000 BUS rate ends 31 March 2027; the Warm Homes: Local Grant runs to March 2028; ECO4 closes 31 December 2026 and work must be finished by then.
- Next step: Check insulation requirements before committing to a heat pump route.
⚡ Key Takeaways
- Boiler Upgrade Scheme: £7,500 towards an air source heat pump in England & Wales
- Warm Homes: Local Grant: fully funded heat pumps for lower-income homes in England, EPC D–G (it replaced HUG2)
- ECO4: ends 31 December 2026 with no increase in targets, so funded heat pump capacity is limited
- Home Energy Scotland: up to £7,500 grant (£9,000 rural) plus an optional interest-free loan in Scotland
- Air source heat pumps cost £8,000-£15,000 before grants
- Running costs are 30-50% lower than a gas boiler with good insulation
- Always get quotes from 3+ MCS-certified installers before committing
Heat pump grants you can get now
The Home Upgrade Grant (HUG2) has closed and was replaced by the Warm Homes: Local Grant, and ECO4 ends on 31 December 2026. These are the heat pump routes open today.
- Boiler Upgrade Scheme (England & Wales) — £7,500 off an air source (air-to-water) or ground source heat pump, or £2,500 off an air-to-air heat pump once MCS certifies the first air-to-air installers, for property owners replacing gas, oil, LPG or electric heating — no income or benefits test, and since 28 April 2026 no valid EPC needed. Homes heated by oil or LPG with no mains gas connection get £9,000 off an air-to-water or ground source heat pump until 31 March 2027. The installer claims it and takes it off the quote. It can't be added on top of other government funding for the same heat pump. Boiler Upgrade Scheme guide.
- Warm Homes: Local Grant (England) — insulation, heat pumps and solar panels for privately owned or privately rented homes rated EPC D–G, through councils taking part, if household income is £36,000 or less, someone gets a qualifying means-tested benefit, or you live in one of the most deprived postcodes. Owner-occupiers can have the work fully funded; tenants pay nothing, and a landlord gets one home fully funded, then pays 50% from the second. It runs to March 2028. Apply free on GOV.UK; your council usually contacts you within 10 working days. How it works. It replaced the Home Upgrade Grant and can pay for a heat pump in full, but not a new gas boiler.
- In Scotland or Wales? — the Warm Homes: Local Grant is England only. In Scotland the Boiler Upgrade Scheme doesn't apply: the Home Energy Scotland Grant and Loan gives up to £7,500 towards a heat pump (£9,000 in rural and island homes) plus an optional £7,500 interest-free loan (0808 808 2282). In Wales, owners can use the Boiler Upgrade Scheme, and Nest can fully fund heating for low-income households in homes rated EPC E or below (0808 808 2244).
- ECO4, while it lasts — ECO4 can still fund work where a local installer has capacity, but only until 31 December 2026, and the work has to be finished, not just booked. There are no new targets and no ECO5. What replaces ECO4.
- Paying yourself? — Heat pumps installed in your home carry 0% VAT until 31 March 2027 (5% after that). Installers quote the cost you pay.
Sources, checked 10 October 2026: GOV.UK Warm Homes: Local Grant, GOV.UK Boiler Upgrade Scheme, SI 2026/390, Ofgem ECO, HMRC VAT Notice 708/6, GOV.UK Warm Home Discount, Home Energy Scotland, gov.wales Nest.
All UK heat pump grants at a glance
| Grant/Scheme | Amount | Who Can Apply | Deadline |
|---|---|---|---|
| Boiler Upgrade Scheme (BUS) | £7,500 (£9,000 oil/LPG homes off mains gas; £2,500 air-to-air, not claimable until MCS certifies installers) | Property owners (England & Wales) | Open; £9,000 rate to 31 Mar 2027 |
| Warm Homes: Local Grant | Full cost for owner-occupiers (landlords: one home, then 50%) | Lower-income homes, EPC D–G, participating councils (England) | March 2028 |
| ECO4 | Full cost where an installer still has funding | Benefits recipients | Work finished by 31 Dec 2026 |
| Warm Homes Loan NEW | Loan up to £20,000 (air source) or £35,000 (ground source); some interest-free | Homeowners and private landlords (whole UK), no income test | Live since 27 Oct 2026 |
| Home Energy Scotland | Up to £7,500 grant (£9,000 rural) + optional £7,500 loan | Scottish homeowners | While funding lasts |
| Nest (Wales) | Free | Low-income households, EPC E or below | Ongoing |
| Home Upgrade Grant (HUG2) | Closed | Replaced by the Warm Homes: Local Grant | Closed |
1. Boiler Upgrade Scheme (BUS) — £7,500
The Boiler Upgrade Scheme is the main heat pump grant for homeowners in England and Wales. Key facts:
- £7,500 towards air source or ground source heat pumps
- £9,000 until 31 March 2027 for an air-to-water or ground source heat pump if your home is heated by oil or LPG and has no mains gas connection (GOV.UK; Ofgem). Full details: BUS rates changed: £9,000 for oil and LPG homes off mains gas from 21 July 2026
- £2,500 towards an air-to-air heat pump (in law since 28 April 2026, but it can't be claimed yet: MCS has certified no air-to-air installers so far)
- Available to property owners, including landlords and second homes — no income or benefits test
- No valid EPC needed since 28 April 2026 (SI 2026/390)
- Your MCS-certified installer applies on your behalf
- You must be replacing fossil fuel heating — oil, gas, LPG or electric
- One grant per property, and not for a heat pump that has already had other government funding
After the grant: A typical air source heat pump costs £2,500-£7,500 out of pocket after the £7,500 BUS grant. Read our full BUS guide → Ready to price it? Get a heat pump quote from one MCS-certified installer →
2. ECO4 — Free heat pumps
If you receive qualifying benefits (Universal Credit energy grants, Pension Credit, etc.) and your home has an EPC rating requirements of D-G, ECO4 can still cover the entire cost of a heat pump — but only where an installer still has funding. The government extended ECO4 to 31 December 2026 with no increase in targets, so capacity is limited and the work has to be finished, not just booked, by that date (GOV.UK, 23 January 2026). In England, the Warm Homes: Local Grant is the fully funded route that carries on after ECO4.
3. Home Energy Scotland — Grant and Loan
The Boiler Upgrade Scheme doesn't apply in Scotland. Instead, the Home Energy Scotland Grant and Loan helps homeowners (no benefits needed):
- Grant: up to £7,500 towards a heat pump
- Rural and island homes: an extra £1,500, so up to £9,000
- Optional interest-free loan: up to a further £7,500
- You can apply for a heat pump without an EPC; hybrid heat pumps aren't funded (Home Energy Scotland, checked 23 September 2026)
Lower-income households on a qualifying benefit, or aged 75+ with no working heating, should ask about Warmer Homes Scotland, which can fully fund heating. Call Home Energy Scotland free on 0808 808 2282.
4. Nest scheme — Wales
The Welsh Government's Nest scheme fully funds home energy improvements — which can include a heat pump where it suits the home — for owner-occupiers and private tenants on a means-tested benefit or a low income, in homes rated EPC E or below (or D with certain health conditions). Call Nest free on 0808 808 2244 (gov.wales). Welsh homeowners who don't qualify can still use the £7,500 Boiler Upgrade Scheme.
5. Local authority grants
In England, council heat pump funding now mostly comes through the Warm Homes: Local Grant, which councils deliver to eligible homes. It is aimed at:
- Privately owned or privately rented homes rated EPC D–G
- Household income of £36,000 or less, a qualifying means-tested benefit, or a postcode in one of the most deprived areas
- Off-gas grid properties, where a heat pump is often the recommended measure
It runs to March 2028; apply free on GOV.UK and your council usually contacts you within 10 working days. Council funding for the heat pump itself can't be combined with BUS: the Boiler Upgrade Scheme isn't available for a heat pump that has already had other government funding. Earlier funding for insulation doesn't stop you using BUS (GOV.UK).
6. Home Upgrade Grant (HUG2) — closed
HUG2 funded heat pumps, insulation and other measures for low-income homes off the gas grid in England. It has closed to new applications. The Warm Homes: Local Grant replaced it (and the Local Authority Delivery scheme) as the single council-delivered scheme, and it also covers homes on the gas grid (DESNZ Warm Homes: Local Grant guidance, updated July 2026). If you were waiting on HUG2, apply for the Warm Homes: Local Grant instead.
Warm Homes Loan: borrow the rest after the grant
The government’s Warm Homes Loan Scheme went live on 27 October 2026. Ten lenders, including HomeServe (with E.ON), Sunsave, Hometree and Tandem, offer loans for air source and ground source heat pumps that are up to 5 percentage points cheaper than a normal loan, and some are interest-free. There’s no income test: you need to own the home and pass the lender’s credit checks. It works across the whole UK.
Can you get a heat pump with the Warm Homes Loan? Yes. You can borrow up to £20,000 for an air source heat pump or £35,000 for ground source, and DESNZ says you can combine the loan with a Boiler Upgrade Scheme grant of up to £9,000. For example, on a £12,000 quote the £7,500 BUS grant leaves £4,500 to borrow. You apply through your installer, a lender or your mortgage provider, never the government, and the installer must be MCS certified.
Lenders, limits and how to apply → · Get a heat pump quote →
Combining grants for maximum savings
The smartest approach is often to combine multiple schemes:
- Get funded insulation first through the Warm Homes: Local Grant (England), or ECO4 / LA Flex while they last (to 31 December 2026; GBIS closed 31 March 2026)
- Apply for BUS for £7,500 towards your heat pump — earlier insulation funding doesn't affect it
- Add solar panels (from £5,000) to power your heat pump cheaply
- Don't double-fund the heat pump — BUS can't go on top of other government funding for the same heat pump, so pick one route for it
This combination can transform your home's energy efficiency at minimal personal cost — sometimes for less than £5,000 total out of pocket.
Heat pump costs after grants
| Scenario | Heat Pump Cost | Grants | You Pay |
|---|---|---|---|
| BUS only | £12,000 | £7,500 (BUS) | £4,500 |
| BUS + funded insulation | £12,000 + £0 insulation | £7,500 + free insulation | £4,500 |
| Warm Homes: Local Grant heat pump | £12,000 | £12,000 (WHLG) | £0 |
| Scotland (HES) | £12,000 | £7,500 grant | £4,500 (0% loan available) |
How to get started
- Check your eligibility with Great British Energy eligibility checker — Enter your postcode above to see which grants you qualify for
- Insulate first — If your home needs insulation, arrange this before the heat pump installation
- Get an MCS installer quote — request a heat pump quote from one MCS-certified installer; the installer applies for BUS and takes it off the price
- Apply through your installer — For BUS, your installer handles the application