Heat Pump Grant UK 2026: BUS, ECO4 & Costs
The Boiler Upgrade Scheme gives most homeowners in England and Wales £7,500 towards an air-to-water or ground-source heat pump, rising to £9,000 for off-gas-grid homes replacing oil or LPG until March 2027.
What grants are available for heat pumps?
Two government-backed routes can reduce or remove the cost of a heat pump.
The Boiler Upgrade Scheme (BUS) covers England and Wales. Since 21 July 2026 the approved grant values are:
| Heat pump type | Standard grant | Off-gas-grid (replacing oil/LPG) |
|---|---|---|
| Air-to-water | £7,500 | £9,000 (until March 2027) |
| Ground-source | £7,500 | £9,000 (until March 2027) |
| Air-to-air | £2,500 | £2,500 |
The extra £1,500 uplift for off-gas-grid properties replacing oil or LPG boilers is available until March 2027. Fossil-fuel hybrid systems do not qualify as the new installation. BUS funding is confirmed through the 2029/30 fiscal year under the Warm Homes Plan (GOV.UK BUS funding commitment).
ECO4 is the Energy Company Obligation, running until 31 December 2026. It can fully fund a heat pump for qualifying low-income households, but eligibility depends on your home's tenure, EPC rating, household income and the measures an energy supplier's assessor recommends. ECO4 is not an automatic entitlement for everyone receiving benefits (GOV.UK ECO).
Eligibility at a glance
Could you get a heat pump grant?
- BUS: own the property in England or Wales
- BUS: replace an existing fossil-fuel or electric heating system
- BUS: use an MCS-certified installer
- ECO4: low-income household, eligible benefits or ECO Flex referral
- ECO4: home EPC and heating type must qualify
Free eligibility check
Find every grant your home qualifies for in two minutes.
Check my eligibility- Free check
- Takes 2 minutes
- No obligation
Who is eligible for the BUS grant?
Eligibility centres on the property, not just the person paying.
To qualify for BUS you must:
- Own the property (including if you are a landlord, but most new-build homes and social housing are excluded).
- Be replacing an existing heating system. The installer must check the existing heating against the eligibility rules, including any applicable self-build provisions.
- Use an MCS-certified installer who applies on your behalf.
- Have the heat pump commissioned and installed within 120 days of the application.
BUS no longer requires you to complete outstanding loft or cavity-wall insulation recommendations before applying. That requirement was removed on 8 May 2024. Insulating first is still sensible because a well-insulated home lets a smaller, cheaper heat pump do the job, but it is not a grant condition (GOV.UK BUS eligibility).
Who is eligible for ECO4?
ECO4 eligibility is not automatic for every benefit claimant.
The scheme targets low-income and fuel-poor households. Key factors include:
- Benefits: certain means-tested benefits can qualify you, but Child Tax Credit and Working Tax Credit ended on 5 April 2025 and are no longer valid qualifying benefits.
- ECO Flex: your local council can refer households that do not receive qualifying benefits but meet local vulnerability or low-income criteria. This is a referral route, not guaranteed funding.
- EPC rating: for private rented homes, GOV.UK specifies EPC E, F or G. Owner-occupiers may qualify with a wider range of ratings depending on the supplier's assessment.
- Measures: the energy company's assessor decides which improvements are funded. A heat pump is not guaranteed; the package depends on your home's characteristics.
Not sure which route fits?
Answer a few questions to see possible grant routes for your home. An MCS installer or council confirms final eligibility.
Why does MCS certification matter?
MCS certification is a legal requirement for BUS funding.
The Microgeneration Certification Scheme sets standards for renewable-energy installations. Only an MCS-certified installer can apply for a BUS voucher. Using a non-certified installer means you cannot claim the grant, regardless of the equipment fitted.
MCS certification also matters because:
- It requires the installer to follow defined design and installation standards.
- It provides a consumer code and complaints process.
- It provides evidence that the installation has followed the applicable certification process. VAT relief has separate conditions and is not established simply by MCS status.
You can search the MCS installer database on the MCS website to verify any company before signing a contract.
What about the Warm Homes Local Grant?
This is a separate England-only scheme for lower-income households.
The Warm Homes Local Grant targets private homes rated EPC D to G, usually where household income is at most £36,000. Qualifying benefits or postcodes can provide alternative routes. A council survey determines which improvements are funded, and a heat pump may be included if appropriate. A national GOV.UK application portal exists, but available funding and the specific measures offered depend on your local authority. Landlords may need to contribute. Funding delivery runs to March 2028.
What should you watch for with scams?
Pressure selling and fake grant claims are common in the energy sector.
Protect yourself by following these steps:
Common questions
Frequently asked questions
- How much is the BUS heat pump grant in 2026?
- The standard BUS grant is £7,500 for an air-to-water or ground-source heat pump. Off-gas-grid homes replacing oil or LPG heating can receive £9,000 until March 2027. Air-to-air heat pumps receive £2,500.
- Can I get a free heat pump through ECO4?
- ECO4 can fully fund a heat pump for qualifying low-income households, but eligibility depends on your benefits, home EPC rating and the measures an energy company assessor recommends. It is not guaranteed for every applicant.
- Do I need to insulate my home before applying for BUS?
- No, that requirement was removed in May 2024.
- Does BUS apply in Scotland?
- No, BUS covers England and Wales only. Scotland has separate energy-efficiency support programmes that may help with heat pump costs.
- How long does the BUS voucher last?
- The heat pump must be commissioned and installed within 120 days of the application being submitted by your MCS-certified installer. If the deadline passes without completion, the voucher expires and a new application is needed.