Boiler Upgrade Scheme Overhaul April 2026: Everything Homeowners Need to Know About the New Rules
The BUS grant overhaul in April 2026 brings air-to-air eligibility, £9,000 for off-gas homes and no EPC requirement. Here's exactly what's changing.
Written by Heat Pump Buddy
The Boiler Upgrade Scheme overhaul taking effect from April 2026 is the single biggest set of changes since the grant launched back in 2022. Air-to-air heat pumps are now eligible, off-gas-grid homes can claim up to £9,000, the EPC requirement has been scrapped, and the scheme has been extended to March 2030. If you've been sitting on the fence about switching from your gas or oil boiler, the fence just got a lot less comfortable.
What Exactly Is Changing in the April 2026 BUS Overhaul?
Let's break this down into the specific changes, because there are several and they all matter.
Air-to-air heat pumps are now eligible. Before April 2026, only air-to-water and ground source heat pumps qualified for a BUS grant. That left out the most affordable type of heat pump on the market. Air-to-air systems, which heat your home through wall-mounted units rather than wet radiators, can now attract grant funding. This is a genuine shift that opens the door for homeowners in flats, smaller properties, or those who simply can't justify the cost of a full wet system.
Off-gas-grid homes get a higher grant of up to £9,000. If your property isn't connected to the mains gas network, you're likely burning oil, LPG, or even coal. The government has recognised that these homes are often the most expensive to heat and the hardest to decarbonise, so there's now a higher grant tier specifically for them.
The EPC requirement has been removed. Previously, you needed a valid Energy Performance Certificate before applying. That meant paying £60 to £120 for an assessment and, in some cases, being told your home's rating wasn't good enough. That barrier is gone.
The scheme now runs until March 2030. This gives installers and homeowners alike a proper runway to plan installations without the constant worry that funding will dry up in 12 months.
How Does the New £9,000 Grant for Off-Gas-Grid Homes Work?
Roughly four million homes in England and Wales sit off the gas grid. Many of these are rural properties running on heating oil, where a typical annual fuel bill in 2026 sits around £1,800 to £2,400 depending on usage and oil prices. If that sounds like you, the new £9,000 grant tier is worth serious attention.
The higher grant applies to air-to-water and ground source heat pump installations at properties that aren't connected to the mains gas network. Your MCS certified installer will confirm your eligibility as part of the application. You don't need to prove it yourself with paperwork.
Here's a real example. Say you live in a three-bedroom detached cottage in Devon, currently heated by an oil boiler. A typical air source heat pump installation might cost around £12,000 to £14,000 after the old £7,500 grant. With the new £9,000 tier, your out-of-pocket cost drops to somewhere between £5,000 and £7,000. And your running costs should fall too, because a well-installed heat pump running on a heat pump electricity tariff will often undercut oil heating.
Who Still Gets the £7,500 BUS Grant?
The standard BUS grant of £7,500 isn't going anywhere. If your home is on the gas grid and you're replacing a gas boiler with an air source or ground source heat pump, you'll still receive £7,500 towards the cost of installation.
For most semi-detached or terraced homes on the gas grid, a typical air source heat pump installation runs between £10,000 and £14,000 before the grant. After the £7,500 is applied, you're looking at roughly £2,500 to £6,500 out of pocket. That's comparable to what a lot of people pay for a new gas boiler installation with all the trimmings, and the heat pump should last 20 years or more.
The grant is applied directly by your installer. You don't receive the money and then pay it over. Your installer claims it from Ofgem, and your quote should show the grant amount already deducted. If an installer quotes you the full price and says you'll get the money back later, that's a red flag.
Why Has the EPC Requirement Been Dropped?
Frankly, the EPC requirement was one of the biggest sources of frustration for homeowners trying to access the BUS grant. Here's why it caused problems.
An EPC is a snapshot of your home's energy rating based on a survey that often takes less than an hour. The quality varied wildly depending on the assessor, and plenty of homeowners found that minor differences in how their loft insulation was recorded could change their rating. Some were told they needed to spend money on improvements before they could even apply for the grant.
By removing the EPC requirement, the government has cut out a step that was slowing down applications and, in some cases, putting people off entirely. Your installer will still carry out a proper heat loss assessment as part of their survey, which is a far more detailed and useful measure of whether your home is ready for a heat pump.
"My Home Is Too Old or Draughty for a Heat Pump" — Is That Still True?
This is the objection that comes up the most, and it deserves a straight answer. No, most homes are not too old or too draughty for a heat pump. But some homes will benefit from improvements before installation.
A well-designed heat pump system can work in Victorian terraces, 1930s semis, and post-war bungalows. The key is proper sizing and, where needed, upgrading a few radiators to larger ones so the system can run at lower flow temperatures. A good MCS certified installer will identify exactly what's needed during their survey.
Where it gets trickier is with homes that have no loft insulation, single-glazed windows throughout, or serious draughts around doors and floors. In those cases, you'll get better results if you tackle the worst insulation gaps first. But you don't need to turn your house into a passive house to make a heat pump work. That's a myth that won't die.
And with the EPC requirement now gone, there's no bureaucratic gatekeeper telling you your home doesn't qualify based on a letter rating. The decision is between you and your installer based on a proper technical assessment.
Air-to-Air Heat Pumps: Are They Worth Considering?
Air-to-air heat pumps have been common across Europe and Asia for decades, but they've been largely overlooked in the UK because they didn't qualify for government support. That's changed.
These systems work differently from air-to-water heat pumps. Instead of heating water that flows through radiators or underfloor heating, they blow warm air directly into your rooms through wall-mounted indoor units. Think of them as reversible air conditioning units that heat in winter and cool in summer.
The upside? They're significantly cheaper to install. A whole-house air-to-air system with multiple indoor units might cost £5,000 to £8,000 before the grant. They're quicker to fit, they don't require changes to your existing plumbing, and they respond almost instantly when you turn them on.
The downside? They don't heat your hot water. You'll still need a separate system for that, whether it's an immersion heater, a hot water heat pump, or your existing boiler running just for hot water. And some people don't love the look of the indoor units.
For homeowners in well-insulated flats, small houses, or properties where a wet system installation would be disruptive, air-to-air is now a genuinely affordable option with grant support.
Frequently Asked Questions
Can I get a £9,000 BUS grant for a heat pump in 2026?
Yes, but only if your home is off the gas grid. The new £9,000 grant tier introduced in April 2026 is specifically for properties not connected to the mains gas network. Homes on the gas grid can still claim the standard £7,500 grant.
Do I still need an EPC to apply for the Boiler Upgrade Scheme?
No. The EPC requirement was removed as part of the April 2026 overhaul. You no longer need a valid Energy Performance Certificate to apply for a BUS grant. Your installer will carry out their own heat loss assessment instead.
Are air-to-air heat pumps eligible for the BUS grant now?
Yes, air-to-air heat pumps became eligible for BUS grants from April 2026. This is the first time this type of system has qualified for government funding in England and Wales. The system must be installed by an MCS certified installer to qualify.
How long does the Boiler Upgrade Scheme run until?
The scheme has been extended and now runs until March 2030. This gives homeowners several years to plan and budget for a heat pump installation without worrying about the funding being pulled at short notice.
Can I get a BUS grant if I already have a heat pump installed?
No. The BUS grant is only available for new heat pump installations replacing an existing fossil fuel heating system. If you already have a heat pump and want to upgrade it, you won't qualify for the grant.
If you're thinking about making the switch, the best first step is getting quotes from qualified local installers who know the new rules inside out. Use our directory at heatpumpinstallerdirectory.co.uk to find MCS certified heat pump installers in your area. Every installer listed is verified and experienced with BUS grant applications, so you'll know exactly what you're entitled to and what the installation will cost after the grant is applied.