Free Heat Pump Grants UK 2026 — Every Scheme Explained

Yes, you can get a heat pump installed for free or heavily subsidised in 2026, but the scheme you qualify for depends on your income, your property type, and where you live. The biggest grant is the £7,500 Boiler Upgrade Scheme (BUS), which is open to most homeowners in England and Wales regardless of income. Lower-income households may qualify for a fully funded installation through ECO4 or the Great British Insulation Scheme, and several local authority programmes cover the rest.

Which Free Heat Pump Grants Are Available in 2026?

There are more funding routes than most people realise. Here's a quick breakdown of every active scheme as of July 2026:

Boiler Upgrade Scheme (BUS) — £7,500 off the cost of an air source or ground source heat pump. Open to homeowners in England and Wales. No income test. Your installer applies on your behalf through Ofgem.

ECO4 (Energy Company Obligation) — Funded by the big energy suppliers. Can cover the full cost of a heat pump for low-income households or those on qualifying benefits. Runs until March 2026, though an extension or successor scheme is expected.

Great British Insulation Scheme (GBIS) — Primarily aimed at insulation, but in some cases it funds heat pumps as part of a wider package, particularly for homes in Council Tax bands A to D.

Home Upgrade Grant (HUG2) — Targets off-gas-grid homes in England with low household incomes. Can fully fund a heat pump along with insulation measures. Delivered through local authorities.

Warm Homes: Local Grant — A newer programme replacing parts of HUG2 in some regions, channelling funding through local councils for energy efficiency upgrades including heat pumps.

Nest (Wales) — A Welsh Government scheme offering free home energy improvements, including heat pumps, to eligible households on means-tested benefits or with specific health conditions.

Home Energy Scotland Grant and Loan — Up to £7,500 grant plus an optional interest-free loan of up to £7,500 for heat pumps in Scotland. Separate from the BUS.

Northern Ireland — The Northern Ireland Sustainable Energy Programme (NISEP) and Affordable Warmth scheme offer some support, though funding levels tend to be lower than in the rest of the UK.

The £7,500 BUS Grant — What You Actually Need to Know

The Boiler Upgrade Scheme is the one most homeowners will use. It knocks £7,500 off the installed price of an air source heat pump, which typically brings the out-of-pocket cost down to somewhere between £3,000 and £6,000 depending on your property.

Here's how it works in practice. Your MCS certified installer surveys your home, quotes you a price, and then applies for the voucher through Ofgem on your behalf. You don't pay the grant portion at all. You just pay the difference.

A few important conditions: your home must have a valid EPC (Energy Performance Certificate), and the property must not already have a heat pump. The scheme covers air source, ground source, and water source heat pumps. It does not cover hybrid systems. And you need an MCS certified installer, not just any plumber with a spanner.

The BUS budget was expanded significantly after an initial slow start, and uptake has been climbing. Ofgem approved over 41,000 voucher applications in the year to March 2026, a big jump from earlier years. The scheme is currently funded to run until March 2028, so there's no need to panic, but applying sooner rather than later is wise since budgets do get reviewed.

Can You Really Get a Heat Pump Completely Free?

Yes, but only if you meet specific criteria. ECO4 and HUG2 are the two main routes to a fully funded heat pump.

For ECO4, you'll generally need to be receiving a qualifying benefit such as Universal Credit, Pension Credit, Income Support, or Child Tax Credit. Your energy supplier or an authorised ECO installer will assess your home and determine whether a heat pump is the right measure. If it is, the full cost can be covered.

HUG2 targets a slightly different group. You need to be in an off-gas-grid property (or using an expensive heating fuel like oil or LPG) and have a household income below £36,000. The local authority in your area manages the scheme, so availability varies by region.

Let's put this into a real example. Sarah lives in a three-bedroom semi in County Durham. She's on Universal Credit, her home is off the gas grid and heated by an old oil boiler, and her EPC rating is E. She qualifies for HUG2 through her local council and gets an air source heat pump installed at no personal cost, along with loft and cavity wall insulation. Her heating bills drop by roughly £300 a year.

If you're not on benefits and you're connected to mains gas, the BUS grant at £7,500 is your most realistic option. It's not free, but it takes a serious chunk off the price.

How Do Local Authority Heat Pump Grants Work?

Local council schemes can be genuinely useful, but they're also the hardest to track down because they vary so much.

Some councils run their own fuel poverty programmes with funding from central government. Others act as delivery partners for HUG2 or the Warm Homes: Local Grant. A few have standalone retrofit schemes funded through the UK Shared Prosperity Fund or similar pots.

The best way to check is to visit your local council's website and search for energy efficiency grants, or call their housing team directly. You can also use the government's Simple Energy Advice service, which will point you toward schemes in your area based on your postcode and circumstances.

Honestly, the patchwork nature of local funding is one of the most frustrating parts of the whole system. Two homeowners in identical circumstances can get very different levels of support just because they live in different council areas. But it's worth spending 20 minutes checking, because you might find thousands of pounds of funding you didn't know existed.

"I've Heard Heat Pumps Don't Work in Older Houses" — Let's Deal With That

This is the objection that comes up most often, and it's only partly true.

Heat pumps work best in well-insulated homes. That's a fact. But "well-insulated" doesn't mean you need a brand new build. Plenty of 1930s semis and Victorian terraces are running heat pumps perfectly well in 2026, provided they've had basic insulation measures like cavity wall, loft insulation, and perhaps some draught-proofing.

Here's the key point many people miss: several of the grant schemes mentioned above will fund insulation alongside the heat pump. HUG2, ECO4, and most local authority programmes treat the home as a whole. They won't just bolt on a heat pump and walk away. They'll insulate your home first so the heat pump can do its job properly.

If your home genuinely can't be insulated to a reasonable standard (a listed building with solid walls and no scope for internal or external insulation, for instance), then a heat pump may not be the right fit. But for the vast majority of UK homes, it's a solvable problem.

An MCS certified installer will carry out a proper heat loss calculation before recommending a system. If a heat pump won't work for your property, a good installer will tell you upfront. That's one of the benefits of using certified professionals rather than cowboy outfits.

What About Scotland, Wales, and Northern Ireland?

Scotland has its own setup that's actually more generous than England's in some respects. Through Home Energy Scotland, you can get a £7,500 grant plus an interest-free loan of up to £7,500, making the total support package worth up to £15,000. Rural and off-grid homes may qualify for even more.

Wales has the Nest scheme for lower-income households, plus the BUS grant applies there too. So Welsh homeowners have two potential routes.

Northern Ireland is the trickiest. The BUS doesn't apply there, and dedicated heat pump grant schemes are thinner on the ground. The Affordable Warmth scheme and NISEP offer some help, but funding levels tend to be smaller. If you're in Northern Ireland and interested, contact the Northern Ireland Housing Executive for the most current information.

Frequently Asked Questions

Can I get a free heat pump on Universal Credit?

Yes, if you're on Universal Credit you'll likely qualify for ECO4 funding, which can cover the full cost of a heat pump installation. You may also be eligible for HUG2 if your home is off the gas grid. Contact your energy supplier or local council to start the process.

How do I apply for the £7,500 heat pump grant?

You don't apply directly. Your MCS certified installer submits the application to Ofgem on your behalf after surveying your property. You just need to choose a certified installer, get a quote, and they handle the grant paperwork as part of the process.

Do I need to pay anything with the Boiler Upgrade Scheme?

In most cases, yes. The BUS grant covers £7,500, but the average air source heat pump installation costs between £10,000 and £14,000. You'll pay the difference. Some smaller or simpler installations can come close to being fully covered by the grant, but that's not typical.

Can I get a heat pump grant if I have a gas boiler?

Yes. The BUS grant is specifically designed for homeowners replacing fossil fuel heating systems, including gas boilers. You don't need to be off the gas grid to qualify. You just can't already have a heat pump installed.

Are heat pump grants available for landlords in 2026?

Landlords in England and Wales can apply for the BUS grant on properties they rent out, but only if the property meets the same eligibility criteria as owner-occupied homes. Some ECO4 funding can also apply to rented properties where tenants are on qualifying benefits.

Find a Local MCS Certified Installer

Whatever grant you're eligible for, you'll need an MCS certified installer to carry out the work. That certification isn't optional for BUS funding, and it's a requirement for most other schemes too. Use the search tool at heatpumpinstallerdirectory.co.uk to find vetted, certified heat pump installers in your area, get quotes, and start your grant application today.