Boiler Upgrade Scheme: what it pays for and who qualifies

What the scheme covers and what it does not

The scheme is run by Ofgem for the government. It is designed to move homes off fossil-fuel heating, so the grant only applies when the new system is low carbon and replaces an existing fossil-fuel or electric system. Check the current grant amounts on GOV.UK before you commit, because the scheme has been changed and extended since it launched.

Who qualifies

The grant is for property owners in England and Wales, including owner-occupiers, private landlords and owners of second homes and small non-domestic buildings. Social housing and most new-build homes are excluded; self-builds can qualify. The heat pump has to replace a fossil-fuel or direct electric heating system, and the installation must be within the scheme's size limits.

You need a valid EPC, issued within the last ten years. Earlier versions of the scheme also required loft and cavity wall insulation recommendations to be dealt with first; that condition was removed in 2024, but a well-insulated home still makes a heat pump work better and cost less to run. Ofgem's guidance lists the other exclusions, such as where government funding has already been received for the same system.

• You own the property, in England or Wales
• It is not social housing or an ordinary new build
• The heat pump replaces gas, oil, LPG or direct electric heating
• There is a valid EPC
• The installer is MCS certified and applies on your behalf

How the grant is claimed

You do not apply yourself. You choose an MCS-certified installer, agree a quote, and the installer applies to Ofgem for the voucher. Ofgem contacts you to confirm you agreed to the application. Once the system is installed and commissioned, the installer redeems the voucher and the grant is deducted from what you pay.

Get the survey and heat loss calculation done before you sign. A heat pump is sized to the house, not swapped in like a boiler, and the survey tells you whether radiators need replacing, where the outdoor unit can go and whether there is room for the hot water cylinder that most heat pump systems need.

Is a heat pump right for your home?

A heat pump runs at a lower flow temperature than a gas boiler, so it heats rooms more gently and for longer. That works well in homes that hold their heat, with radiators large enough to give out enough warmth at that lower temperature. In an older London terrace or conversion flat, the practical questions are usually space and layout rather than whether a heat pump can work in principle.

Most heat pump systems need a hot water cylinder, because a heat pump cannot heat water on demand like a combi. If you have a combi in a small flat, finding room for a cylinder can be the deciding factor. Outdoor units also need a suitable position, and flats generally need the freeholder's consent. Our guide on whether a heat pump needs a different hot-water cylinder explains why a standard cylinder is often replaced at the same time.

• Radiator sizes: will they heat the rooms at a lower flow temperature?
• Cylinder space: is there a cupboard for stored hot water?
• Outdoor unit: is there a suitable wall or garden position, and consent if you are in a flat?
• Insulation and draughts: fixing these first reduces the size and running cost of the system
• Electricity supply: the installer checks whether any upgrade is needed

If you just need a new gas boiler

For many London households the honest answer is that a heat pump is not practical right now, and the old boiler needs replacing before winter. There is no general government grant for a like-for-like gas boiler replacement. Support for new boilers has mainly come through schemes aimed at lower-income households, run through energy suppliers or councils, and those schemes have changed often. The GOV.UK energy efficiency grants service is the place to check what is currently available for your address and circumstances.

If you are replacing a gas boiler now but may switch to a heat pump later, you can make that step easier. A system boiler with a cylinder rather than a combi, correctly sized radiators and a clean, well-dosed heating system all carry over to a future heat pump. Running the new boiler at a lower flow temperature also shows you how the house performs with gentler heat.

Be wary of cold calls and adverts promising a free boiler. Check any scheme on GOV.UK or with your council before giving personal or financial details.

Repair, replace or wait?

If your boiler is still working but old, you have time to look at a heat pump properly: get an EPC, a survey and more than one quote. If it has broken down in cold weather, the priority is getting heating and hot water back. A repair may buy a season while you plan; if the boiler is beyond economic repair, a new boiler is usually the realistic choice. Our guide to whether to repair or replace a boiler goes through that decision.

Talk to us about your boiler

Loyal Plumbers repairs and replaces gas boilers across London and everywhere inside the M25, with gas work carried out by Gas Safe registered engineers. We can tell you whether your current boiler is worth repairing, replace it if it is not, and set up the new system with a heat pump in mind if that is where you are heading.

Heat pump installations claimed under the Boiler Upgrade Scheme must be carried out by an MCS-certified installer. Call us or send an enquiry with your boiler make, its age and what is going wrong, and we will talk you through the options.