Every Heat Pump Grant Available in the UK in 2026: BUS, Warm Homes Plan & the New £2,500 Air-to-Air Incentive Explained

In 2026, UK homeowners can access at least four distinct heat pump grants, and the total funding available to a single household can reach £7,500 or more depending on your circumstances. The main schemes are the Boiler Upgrade Scheme (BUS) at £7,500, the Warm Homes Plan for lower-income households, the new £2,500 air-to-air heat pump incentive, and various local authority top-up grants. This guide breaks down exactly who qualifies for what, how much you'll get, and how to claim.

What heat pump grants are available in the UK in 2026?

The funding picture has changed significantly since 2025. The government's commitment to the £15 billion Warm Homes Plan, combined with the continuation of the BUS grant and the surprise announcement of a £2,500 incentive for air-to-air systems, means there's more money on the table than ever before. But the rules differ for each scheme, and you can't always stack them.

Here's a quick summary of the main grants:

• Boiler Upgrade Scheme (BUS): £7,500 off an air source or ground source heat pump. Open to most homeowners in England and Wales.
• Warm Homes Plan: Targeted support for lower-income households, potentially covering the full cost of insulation and a heat pump. Managed through local authorities and the Great British Energy body.
• £2,500 Air-to-Air Heat Pump Incentive: A new grant specifically for air-to-air heat pump systems, aimed at homes where a full wet system isn't practical.
• Local authority and devolved nation schemes: Scotland's Home Energy Scotland grants, Welsh Government top-ups, and various council-level schemes.

Let's go through each one properly.

The £7,500 BUS Grant: Still the Main One for Most Homeowners

The Boiler Upgrade Scheme remains the single biggest grant available to the average homeowner. It gives you £7,500 off the cost of an air source heat pump or a ground source heat pump, applied as a discount at the point of installation. You don't need to be on a low income. You just need to own the property, have it in England or Wales, and use an MCS certified installer.

The scheme was extended in the Spring 2025 budget and is confirmed to run through to at least March 2028. The government allocated an extra £1 billion to keep it going, so there's no immediate risk of the money running out. As of early 2026, uptake has accelerated sharply, with Ofgem processing over 40,000 voucher applications in 2025 alone.

A few things catch people out. Your property needs a valid Energy Performance Certificate (EPC) with no outstanding loft or cavity wall insulation recommendations (or you need to have addressed them). The heat pump must be installed by an MCS certified installer. And the grant is per property, not per person, so you can't claim it twice on the same house.

Honestly, for a typical three-bedroom semi switching from a gas boiler, the BUS grant brings the out-of-pocket cost of an air source heat pump down to roughly £4,000 to £6,000 depending on the system and any additional works needed.

What Is the New £2,500 Air-to-Air Heat Pump Incentive?

This one caught a lot of people off guard. The government announced a £2,500 incentive for air-to-air heat pump installations as part of its broader push to get heat pumps into homes that aren't suited to traditional wet heating systems.

Air-to-air heat pumps work differently from the air-to-water systems most people picture. They don't connect to radiators or underfloor heating. Instead, they blow warm air directly into rooms, much like a reverse air conditioning unit. They're cheaper to buy and install, typically costing between £2,000 and £5,000 for a multi-split system covering several rooms.

The £2,500 incentive is designed to make these systems essentially free or very low cost for many installations. It's particularly aimed at park homes, flats, older properties with no central heating, and homes where running new pipework would be prohibitively expensive.

The scheme is expected to open for applications in mid-2026, with the government confirming it will sit alongside the BUS grant rather than replacing it. You won't be able to claim both the £7,500 BUS grant and the £2,500 air-to-air incentive on the same property, though. It's one or the other.

The Warm Homes Plan: Who Actually Qualifies?

The Warm Homes Plan is the government's flagship fuel poverty programme, backed by the much-discussed £15 billion green homes spending commitment. Unlike the BUS grant, this one is specifically aimed at lower-income households and those living in the least energy-efficient homes.

If you're on means-tested benefits, live in a home rated EPC D or below, or are in fuel poverty, you're likely to be eligible. The plan is being rolled out through local authorities and Great British Energy, with funding covering insulation upgrades, heat pumps, and sometimes both at no cost to the homeowner.

The tricky part is that delivery varies hugely by area. Some councils have already started processing applications, while others are still setting up their delivery teams. If you think you might qualify, your first step should be contacting your local council's housing or energy team, or calling the government's helpline.

For qualifying households, the Warm Homes Plan can cover the entire cost of a heat pump installation. That's a much bigger deal than the BUS grant for people who simply can't afford a £5,000 contribution.

Scotland, Wales and Regional Top-Up Grants

Scotland runs its own scheme through Home Energy Scotland. Homeowners can get up to £7,500 for an air source heat pump and up to £9,000 for a ground source system, with additional cashback loans available. Rural properties in Scotland may qualify for even more. These grants are separate from the BUS scheme, which only covers England and Wales.

In Wales, the BUS grant applies, but the Welsh Government also runs the Nest and Eco Flex schemes for lower-income households. These can cover insulation and heating upgrades, sometimes including heat pumps.

Several English local authorities have their own top-up funds too. Some London boroughs, for example, offer an extra £1,000 to £3,000 on top of the BUS grant. These change frequently, so it's always worth checking with your council before you commit.

"I'm worried the grants won't cover enough and I'll still pay thousands"

This is the concern that comes up more than any other. And it's a fair one.

Let's run through a real example. A couple in a 1960s three-bed semi-detached in Nottingham, currently heating with a 15-year-old gas combi boiler. They get three quotes for an 8.5kW air source heat pump with a hot water cylinder. The average quoted price comes in at £11,200.

With the £7,500 BUS grant, they're paying £3,700 out of pocket. If they finance that over five years with a green home improvement loan at 3.9% APR, their monthly repayment is around £68. Their gas bill was roughly £1,400 a year. Their new electricity cost for the heat pump, based on a coefficient of performance of 3.2 and the current electricity rate of about 24.5p per kWh, works out to around £900 a year.

So they save about £500 a year on fuel, while paying £816 a year on the loan. After the loan is paid off in five years, they're saving £500 every year outright, with a system that should last 20 years or more. That's not a fantasy scenario. That's a pretty common outcome for a well-insulated mid-century home.

The real risk is getting a poor installation or an oversized system, which is exactly why using an MCS certified installer matters. MCS certification means the installer has been independently assessed and your installation is covered by proper consumer protection.

Frequently Asked Questions

Can I get the £7,500 BUS grant and the Warm Homes Plan grant together?

No, you can't stack the BUS grant with Warm Homes Plan funding for the same heat pump. However, you may be able to get Warm Homes Plan funding for insulation and then use the BUS grant for the heat pump itself. Check with your local authority, as the rules on combining schemes depend on how your council is administering the programme.

Do I qualify for the new £2,500 air-to-air heat pump grant?

The £2,500 air-to-air incentive is expected to open in mid-2026 and will be available to homeowners across England and Wales. It's aimed at properties where a traditional wet heating system isn't practical, such as park homes, some flats, and older homes without central heating. Full eligibility criteria will be confirmed when the scheme launches.

How long does it take to get a BUS grant approved in 2026?

Once your MCS certified installer submits your voucher application to Ofgem, approval typically takes between two and four weeks. The voucher is then valid for three months from the date of issue. Your installer handles the entire application process, so you don't need to deal with Ofgem directly.

Is the BUS grant ending soon or is it safe to apply in 2026?

The BUS grant has been confirmed to run until at least March 2028, with a £1 billion funding boost announced in 2025. There's no sign of it being withdrawn early. If anything, uptake targets suggest the government wants more people to apply, not fewer.

What heat pump grants are available in Scotland in 2026?

Scotland doesn't use the BUS grant. Instead, Home Energy Scotland offers up to £7,500 for air source heat pumps and up to £9,000 for ground source systems. Interest-free loans of up to £7,500 are also available. Contact Home Energy Scotland directly for a full eligibility check.

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Ready to find out what you'd actually pay after grants? Use our directory to find a local MCS certified heat pump installer who can survey your home, give you a proper quote, and handle your grant application from start to finish. Search your postcode at heatpumpinstallerdirectory.co.uk and get quotes from trusted installers near you.