Boiler Upgrade Scheme Overhaul April 2026: Air-to-Air Heat Pumps, £9,000 Oil Grants and Everything Homeowners Need to Know

The Boiler Upgrade Scheme has just had its biggest shake-up since it launched. From April 2026, air-to-air heat pumps are eligible for the first time, and households currently running oil or LPG boilers can claim up to £9,000 towards a replacement heat pump. If you've been on the fence about switching, these changes are worth a proper look.

What's Actually Changed in the Boiler Upgrade Scheme From April 2026?

The government confirmed a package of changes to the BUS that took effect in April 2026. Here's the short version of what's different.

The headline change is the grant amount for homes on oil or LPG heating. Those households can now receive £9,000 towards an air source heat pump, ground source heat pump, or (for the first time) an air-to-air heat pump. That's a £1,500 increase on the previous £7,500 figure, and it specifically targets off-gas-grid properties where running costs have been highest.

Air-to-air heat pumps are now included. Previously, only air-to-water and ground source systems qualified. This opens the door for homeowners who want a simpler, lower-cost installation, particularly in well-insulated homes or those that don't need a full wet central heating system.

The standard grant for homes on mains gas remains at £7,500 for air source and ground source heat pumps. That hasn't changed. But the inclusion of air-to-air systems means more installation options are available even for gas-heated homes.

All systems still need to be installed by an MCS certified installer, and the property must be an existing home in England or Wales. New builds don't qualify.

Who Gets the £9,000 Grant and Who Gets £7,500?

This is where people are getting confused, so let's be clear about it.

If your home is currently heated by an oil boiler or LPG boiler, you qualify for the higher £9,000 grant. The government's reasoning is straightforward: these households face the steepest fuel bills and have the fewest alternatives. According to DESNZ figures, the average oil heating bill in 2025 was around £1,800 per year, and that's before any price spikes.

If your home runs on mains gas, you get £7,500. That's still a substantial amount. A typical 8kW air source heat pump installation costs somewhere between £10,000 and £14,000 depending on the property, so even the standard grant covers a significant chunk.

Here's a real example. Say you're in a three-bed semi in Devon, currently running a 20-year-old oil boiler. Your annual heating bill is sitting around £2,000. You get quotes for a 9kW air source heat pump at £12,500 installed. With the £9,000 BUS grant, your out-of-pocket cost drops to £3,500. Running costs on the heat pump should come in around £900 to £1,100 a year, so you're looking at a payback period of roughly three to four years. That's a genuine no-brainer for many oil households.

Air-to-Air Heat Pumps Are Now Eligible: What Does That Mean for You?

Air-to-air heat pumps work differently from the air-to-water systems most people picture. Instead of heating water that flows through radiators, they blow warm air directly into your rooms. Think of a high-quality wall-mounted unit in each room, similar to air conditioning but designed to heat as well as cool.

They're cheaper to install. A whole-house air-to-air system for a three-bed home might cost between £6,000 and £10,000 before the grant. With a £7,500 or £9,000 grant applied, some homeowners could pay very little out of pocket.

But there's a catch. Air-to-air systems don't heat your hot water. You'd still need a separate solution for showers and taps, whether that's an immersion heater, a small hot water heat pump, or keeping an existing cylinder. For some homes this is fine. For others, it's a dealbreaker.

Frankly, the inclusion of air-to-air is a smart move. It gives homeowners a lower-cost entry point, and it makes heat pumps viable in flats and smaller properties where fitting a full wet system with a cylinder is tricky.

The system must still be MCS certified and installed by an MCS certified installer. Not every installer offers air-to-air, so you may need to search specifically for companies that do.

How the £7,500 BUS Grant Still Works for Most Homeowners

The core of the Boiler Upgrade Scheme hasn't changed for the majority of applicants. If you're on mains gas and want an air source or ground source heat pump, the £7,500 grant is still there.

Your installer applies for the grant on your behalf through Ofgem. You don't need to fill in a separate application. The money is deducted from your installation quote, so you only pay the balance. Most homeowners never see the grant money pass through their bank account.

To qualify, your property needs a valid EPC (Energy Performance Certificate). If you don't have one, your installer can usually arrange this. The property must not have received a previous BUS grant, and it must be an existing building, not a new construction.

One thing that catches people out: the grant is per property, not per person. If you buy a house that already had a BUS-funded heat pump installed, you can't claim again for that address.

The scheme is currently funded through to March 2028. There's enough budget headroom for now, but take-up has been rising sharply. In 2025, monthly voucher applications hit record levels, and with the new air-to-air eligibility and higher oil grants, demand in 2026 is expected to increase further. If you're planning to apply, don't assume the money will last forever.

"Should I Wait or Apply Now?" The Biggest Question Homeowners Are Asking

This is the number one thing people want to know. And the honest answer depends on your situation.

If you're on oil or LPG, there's very little reason to wait. The £9,000 grant is live now. Every month you delay is another month paying inflated fuel costs. Oil prices have been volatile throughout 2025 and into 2026, and there's no sign of that settling down.

If you're on mains gas, the calculation is slightly different. Your existing boiler might have years of life left, and the savings from switching are smaller than for oil households. But the £7,500 grant won't be around forever, and gas prices are unlikely to fall in real terms given the direction of energy policy. If your boiler is over 12 years old, it makes sense to at least get quotes now.

If you're specifically interested in air-to-air, it's worth moving fairly quickly. The installer base for MCS certified air-to-air systems is still growing, and early demand could mean longer wait times for installation.

Here's what I'd say: get three quotes from MCS certified installers. Compare the total cost after the grant. Look at projected running costs against what you're paying now. If the numbers work, there's no advantage in waiting.

What About Hybrid Heat Pumps and Biomass?

Hybrid heat pumps, which combine a heat pump with a gas or oil boiler, remain outside the BUS grant for now. The government reviewed this and decided to keep the scheme focused on full fossil fuel replacement. If you want the grant, you need to commit to removing your existing boiler as the primary heat source.

Biomass boilers are also still eligible under the BUS at the £5,000 grant level. But honestly, the number of people choosing biomass through the scheme is tiny compared to heat pumps, and for good reason. The ongoing fuel costs and maintenance requirements make biomass a harder sell for most homeowners.

Frequently Asked Questions

Can I get the £9,000 Boiler Upgrade Scheme grant if I have an oil boiler?

Yes. From April 2026, households currently heated by oil or LPG boilers can claim up to £9,000 towards an air source, ground source, or air-to-air heat pump. Your installer applies for the grant through Ofgem on your behalf.

Are air-to-air heat pumps eligible for the BUS grant in 2026?

Yes, air-to-air heat pumps became eligible for the Boiler Upgrade Scheme from April 2026. The system must be MCS certified and installed by an MCS certified installer. The grant amount is £7,500 for gas households or £9,000 for oil and LPG households.

How much does a heat pump cost after the BUS grant in 2026?

A typical air source heat pump installation costs between £10,000 and £14,000. After the £7,500 grant, most gas households pay between £2,500 and £6,500 out of pocket. Oil and LPG homes paying £9,000 less could pay as little as £1,000 to £5,000 depending on the system.

Do I need to replace my boiler before applying for the Boiler Upgrade Scheme?

No. You apply while your existing boiler is still in place. Your MCS certified installer handles the grant application, and the old boiler is removed as part of the heat pump installation. You don't need to be without heating during the process.

Is the Boiler Upgrade Scheme ending in 2026?

The BUS is currently funded through to March 2028. There's no announcement of an early end, but the budget is finite. With increased grant amounts and new eligibility for air-to-air systems, demand is expected to rise through 2026, so applying sooner rather than later is sensible.

Find Your Local MCS Certified Installer

Whichever grant level applies to you, the first step is the same: find a qualified installer who can survey your property and give you an accurate quote. Use our directory at heatpumpinstallerdirectory.co.uk to search for MCS certified heat pump installers in your area. Every installer listed is verified, and you can compare options before committing to anything.