Boiler Upgrade Scheme Overhaul April 2026: Air-to-Air Heat Pumps, £9,000 Grants and No EPC Required

The Boiler Upgrade Scheme has had its biggest shake-up since it launched in 2022. From 28 April 2026, the grant increased from £7,500 to £9,000 for most heat pump installations, air-to-air heat pumps are now eligible for the first time, and the requirement to have a valid EPC has been scrapped entirely. If you've been sitting on the fence, here's exactly what you need to know.

What actually changed on 28 April 2026?

The government announced a package of changes designed to get more households off gas boilers and onto heat pumps. The headline changes are significant, so let's break them down one by one.

The grant went up to £9,000. Air source heat pumps and ground source heat pumps both now attract a £9,000 voucher, up from £7,500. That's a 20% increase and it applies to new applications made on or after 28 April 2026.

Air-to-air heat pumps are now eligible. Previously, the BUS only covered air-to-water and ground-to-water systems. Air-to-air units, which heat rooms directly without needing wet radiators or underfloor heating, are now included. This is a big deal for homeowners in flats or older properties where fitting a full wet system would be expensive or impractical.

No EPC required. Before the overhaul, you needed a valid Energy Performance Certificate before applying. That requirement has been removed. You no longer need to pay £60 to £120 for an EPC assessment just to get your application started.

The property age restriction has been loosened. The scheme originally required your property to have been built and occupied before a certain date. The new rules are more flexible, widening the pool of eligible homes.

Who qualifies for the £9,000 Boiler Upgrade Scheme grant in 2026?

The core eligibility rules haven't changed dramatically, but the tweaks matter. You need to own the property (or be a landlord of a domestic property). The property must be in England or Wales. And the heat pump must be installed by an MCS certified installer.

Here's what catches people out: the grant is per property, not per person. So if you own a semi-detached house and want to install an air source heat pump, you get one £9,000 voucher for that property. You can't split it across two systems.

Social housing is still excluded. If you're a council tenant or housing association tenant, the BUS isn't the route for you. There are separate schemes like the Social Housing Decarbonisation Fund for those properties.

One thing worth flagging: the property doesn't need to be off the gas grid. Plenty of people assume this scheme is only for rural homes with oil boilers. It's not. If you're in a three-bed semi in Manchester with a gas combi boiler, you're eligible.

What does air-to-air heat pump eligibility actually mean for homeowners?

This is the change that's generating the most interest, and honestly, it's overdue.

Air-to-air heat pumps work differently from air-to-water systems. They don't heat water and push it through radiators. Instead, they blow heated air directly into rooms, similar to air conditioning units running in reverse. They're cheaper to buy and install, often costing between £5,000 and £10,000 for a whole-house system before the grant.

Do the maths on that. With a £9,000 grant, some homeowners could get an air-to-air system installed for very little out-of-pocket cost. For a one-bedroom flat or a small terraced house, the grant could cover the entire installation.

There are limitations, though. Air-to-air systems don't produce hot water, so you'll still need a separate immersion heater, a hot water cylinder, or another solution for showers and taps. For some homes, that's a dealbreaker. For others, particularly those already using an electric shower and an instantaneous water heater, it's barely an issue.

The installation must still be carried out by an MCS certified installer, and the system must meet MCS standards. Not every installer is set up for air-to-air work yet, so availability may be patchy in the first few months.

How the £7,500 grant became £9,000 and why it matters

The original BUS grant launched at £5,000 for air source heat pumps back in 2022. It was bumped to £7,500 in late 2023. The jump to £9,000 from April 2026 reflects two things: rising installation costs and the government's recognition that the original amounts weren't enough to persuade most homeowners to switch.

A typical air-to-water heat pump installation in a three-bedroom house costs between £10,000 and £16,000 depending on the property, the system chosen, and how much pipework or radiator upgrading is needed. With the old £7,500 grant, you were still looking at £5,000 to £8,000 out of pocket. The £9,000 grant brings that down to a more manageable £3,000 to £7,000 range.

Ground source heat pumps remain more expensive, typically £15,000 to £25,000 before the grant. But they also attract the £9,000 voucher and tend to run more efficiently, particularly in larger, well-insulated homes.

Here's a real example. Sarah and James in Wiltshire have a 1960s detached house with four bedrooms. They got quotes in early 2026 for an 11kW air source heat pump. The total cost including a new hot water cylinder, upgrading six radiators, and all installation work came to £13,800. With the £9,000 BUS grant, their net cost was £4,800. They're now saving roughly £400 a year compared to their old oil boiler, meaning a payback period of about 12 years before accounting for any future energy price rises.

"I'm worried the money will run out before I apply"

This is the concern we hear most often. And it's reasonable, because the original scheme did have a budget cap.

The government has confirmed that the BUS will run until at least March 2028 with a total budget of £295 million for the 2026/27 financial year. Take-up has been growing steadily but the scheme hasn't come close to running dry in any previous year. In 2024/25, around 37,000 vouchers were issued. The expanded eligibility for air-to-air systems will increase demand, but the larger budget should absorb that.

That said, don't wait for the sake of waiting. Installer availability is the real bottleneck, not the grant funding. MCS certified installers are busy, and quote-to-installation timescales of 6 to 12 weeks are common. If you want a system installed before winter 2026, you should be getting quotes now.

Another worry people have is that their home "isn't suitable." Frankly, most homes in England and Wales can accommodate some form of heat pump. Air-to-air systems make the technology accessible to flats and smaller properties that couldn't practically fit an outdoor unit with a full wet heating system. If you've been told your house isn't suitable, it's worth getting a second opinion, especially now the rules have changed.

How to apply for the Boiler Upgrade Scheme in 2026

You don't apply directly. Your MCS certified installer handles the application on your behalf through the Ofgem portal. Here's how the process works in practice:

1. Get quotes from MCS certified installers. You need at least two or three to compare pricing and system recommendations.
2. Choose your installer and agree the quote. The installer will specify the system, confirm your property is eligible, and handle the BUS application.
3. Ofgem issues a voucher. This is sent to your installer. The voucher is valid for three months.
4. The installer completes the work. Once the heat pump is installed and commissioned, the £9,000 is paid directly to the installer and deducted from your bill.

You never see the grant money in your bank account. It's taken off the total cost of the installation before you pay.

The removal of the EPC requirement speeds things up. Previously, if you didn't have a valid EPC, you had to book an assessor, wait for the visit, wait for the certificate, and then start the process. That added two to four weeks. Now you can go straight to getting quotes.

Frequently Asked Questions

can I get the £9,000 grant if I already have a heat pump?

No. The Boiler Upgrade Scheme is for replacing fossil fuel heating systems like gas boilers, oil boilers, LPG systems, or electric storage heaters. If you already have a working heat pump, you're not eligible. The grant is specifically for switching to a heat pump for the first time.

do I still need an EPC for the boiler upgrade scheme in 2026?

No. As of 28 April 2026, the EPC requirement has been removed entirely. You no longer need a valid Energy Performance Certificate to apply. Your MCS certified installer will assess your property's suitability as part of their survey and quote process.

are air-to-air heat pumps eligible for the BUS grant now?

Yes. From 28 April 2026, air-to-air heat pumps are included in the Boiler Upgrade Scheme for the first time. The system must be installed by an MCS certified installer and meet MCS product standards. The full £9,000 grant applies to qualifying air-to-air installations.

how long does it take to get a heat pump installed through the BUS?

From first enquiry to a working heat pump, expect 8 to 16 weeks. Getting quotes takes a couple of weeks, the Ofgem voucher is usually issued within days of application, and the installation itself typically takes two to four days. The main variable is installer availability in your area.

is the boiler upgrade scheme grant taxable?

No. The BUS grant is not treated as taxable income. It's a government subsidy that's paid directly to your installer, so it never passes through your hands. You don't need to declare it on a self-assessment tax return.

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Ready to find out what a heat pump would cost for your home after the £9,000 grant? Use our directory at heatpumpinstallerdirectory.co.uk to find MCS certified installers in your area, compare quotes, and get the process started. The grant won't last forever, and the best installers book up quickly.