Heat pump funding
Boiler Upgrade Scheme Extended to 2030, but Not the £9,000 Grant
The £9,000 grant has not been extended. It is currently confirmed only until 31 March 2027. The extension to 2030 applies to the wider scheme, not the temporary higher grant.
The scheme has been extended, but the £9,000 oil/LPG grant has not. Its currently confirmed end date remains 31 March 2027. The government's Warm Homes Plan commits £2.7 billion to the wider Boiler Upgrade Scheme through the 2029/30 financial year, supporting eligible low-carbon heating installations in England and Wales.
That is useful if you are planning a heat pump as part of a renovation, or looking ahead to replacing an ageing boiler. You have more time to plan the work. It does not mean every current grant amount is guaranteed until 2030.
| What it applies to | Confirmed position |
|---|---|
| The Boiler Upgrade Scheme itself | Extended to 2030, with funding through 2029/30 |
| The temporary £9,000 oil/LPG grant | Not extended. Currently confirmed to 31 March 2027, not 2030 |
| 0% VAT on qualifying heat-pump installations | Ends 31 March 2027. The energy-saving materials relief returns to 5% VAT from 1 April 2027 under current rules |
| The temporary electricity-bill VAT cut in Great Britain | Runs from 1 October 2026 to 31 March 2027, not 2030 |
| Your individual grant voucher | Has its own expiry date, which your installer must work to |
The VAT reductions have not been extended to 2030 either. The temporary 0% rate on qualifying heat-pump installations under the energy-saving materials relief ends on 31 March 2027, returning to 5% from 1 April. That is separate from the BUS grant. See HMRC's installation VAT guidance.
The separate 0% VAT period for domestic electricity in Great Britain also ends on 31 March 2027. It runs from 1 October 2026 and affects running costs, not the installation price. Neither VAT deadline is extended by the BUS announcement.
Example: Replacing an Oil Boiler with a Heat Pump
An oil-to-heat-pump installation costing you £2,000 after the grant now could cost £4,050 from April 2027. That assumes the grant returns to £7,500, 5% VAT applies and the installation price before VAT stays the same.
| Cost | Now | April 2027 scenario |
|---|---|---|
| Installation before VAT | £11,000 | £11,000 |
| VAT | £0 (0%) | £550 (5%) |
| Total before grant | £11,000 | £11,550 |
| Grant deducted | £9,000 | £7,500 (assumed) |
| You pay | £2,000 | £4,050 |
That is £2,050 more: £1,500 less grant and £550 VAT on the full installation price, not just the amount left after the grant. The April grant amount is not confirmed yet, so this is an example of the possible change, not a guaranteed future price.
For current grant amounts and eligibility, see the official Boiler Upgrade Scheme guidance.
The calculator covers likely air-to-water or ground source heat-pump support in England and Wales. It is an initial check, not grant approval or a quotation for the complete installation.
What Has the BUS Extension Changed?
The extension gives the scheme a longer funding period. It was previously due to run to 2028; the 2026 amendment regulations extended it to 2030. The extension took effect on 28 April 2026.
For homeowners, the useful part is being able to plan beyond the next few months. You can consider the heating alongside an extension, insulation work or a boiler that is approaching replacement, rather than treating the grant as an immediate deadline.
There are still annual budgets and eligibility rules. The extension is not a personal reservation of funding, and it does not fix grant amounts for the whole period.
Has the £9,000 Grant Also Been Extended?
Not to 2030 under the currently confirmed rules. The temporary £9,000 grant for eligible oil or LPG properties without a mains gas connection is confirmed until 31 March 2027. Ofgem says it will be reviewed before the next financial year. The outcome of that review is not yet confirmed.
The standard air-to-water or ground source grant is currently £7,500. See GOV.UK's current grant values and Ofgem's installer guidance. Our Boiler Upgrade Scheme guide covers the wider eligibility and application process.
Use the Extra Time to Plan the Heating Properly
I would start with the house, not the grant. How much heat does each room need? Can the existing radiators provide that heat at a suitable flow temperature? Where will the heat pump and hot-water cylinder go?
If practical insulation or draught-proofing improvements are on your list, consider them alongside the heating design. They can reduce the heat the building needs. Tell your installer about planned improvements before the system is sized, particularly if an extension or renovation will change the layout.
That does not mean an older house has to reach new-build insulation standards first. We design heat pumps for older homes in Lincolnshire around the building and the improvements that are practical for its owner.
Before deciding when to go ahead, get these things clear:
- The design: room-by-room heat loss, radiator or underfloor-heating output and hot-water requirements.
- The full scope: equipment, pipework, electrics, outdoor position and any other work needed.
- Your remaining cost: the complete quotation less the confirmed grant, not just the headline discount.
- The timing: your building work, the installer's availability and the application and voucher deadlines.
Does Booking an Installer Secure the Grant?
No. A survey booking or accepted quote is not the same as a grant application. Your MCS certified installer applies to Ofgem, and you must complete the required consent and identity steps. Once a voucher is issued, its own expiry date matters; it does not remain valid until 2030.
If you are planning around the temporary uplift, allow time for the application to be properly completed. Do not assume that making an enquiry on the last day is enough. Ask your installer to confirm the grant position and programme before you commit.
Frequently Asked Questions
When does the Boiler Upgrade Scheme end?
It has been extended to 2030, with government funding committed through the 2029/30 financial year. Individual applications still depend on the rules and available budget.
Is the heat pump grant ending in March 2027?
The wider scheme is not. March 2027 is the currently confirmed end of the temporary oil/LPG uplift, not the end of BUS itself.
Will the grant amount stay the same until 2030?
That has not been guaranteed. A longer scheme does not mean every grant value and eligibility rule will stay unchanged.
Should I wait until nearer 2030?
Not just because the scheme runs longer. Get the design and price first, then decide around the condition of your existing heating and any planned building work. There is no confirmed promise of a better grant if you wait.
Can I claim the grant myself?
No. An MCS certified installer applies on your behalf. You confirm consent and the eligible grant is deducted from what you pay.
Does the extension cover the whole UK?
No. The Boiler Upgrade Scheme covers England and Wales. Scotland and Northern Ireland have separate funding arrangements.
Planning a Heat Pump in Lincolnshire?
We can look at your home, plan the heating and show you the cost after the applicable grant. You do not need to have chosen a heat pump before speaking to us.
Discuss your heat pump installation