Homeowners can combine a Warm Homes Loan with a grant of up to £9,000 through the government’s Boiler Upgrade Scheme — or through Home Energy Scotland if you live in Scotland. The grant reduces the cost of the heat pump, so you borrow less.
Boiler Upgrade Scheme grant amounts
The Boiler Upgrade Scheme is open to people in England and Wales and helps replace fossil fuel heating (oil, gas, electric or LPG). You can get one grant per property. Budget 2026 kept the scheme’s budget at £400 million in 2027–28, rising broadly with inflation after that. The grants are:
| System | Grant |
|---|---|
| Air source (air-to-water) heat pump | £7,500 |
| Ground source heat pump (including water source) | £7,500 |
| Biomass boiler | £5,000 |
| Air-to-air heat pump | £2,500 |
Until March 2027 there is an extra £1,500 towards an air source or ground source heat pump if your home is heated by oil or LPG and has no mains gas connection — which is how the total reaches £9,000.
What the grant doesn’t cover
You can’t get a Boiler Upgrade Scheme grant for a hybrid system (such as a gas boiler combined with an air source heat pump), or to replace an existing low carbon heating system.
How the loan and grant fit together
The grant comes off the cost of the installation, and a Warm Homes Loan can spread what’s left. The maximum loan is £20,000 for an air source heat pump and £35,000 for a ground source heat pump. See every loan limit.
Your MCS-certified installer can tell you whether a heat pump suits your home and which grant applies.
Considering a heat pump?
Request a call and we’ll talk through the grant, the loan and applying with an MCS-certified installer.
Loans are provided by participating lenders and are subject to their affordability, credit and eligibility checks.