Air Source Heat Pump Grant UK 2026: Up to £9,000 Off, or 100% Free
By Peter Davies, ECO4 Analyst
Reviewed
UK homeowners have three funded routes to an air source heat pump in 2026: the Boiler Upgrade Scheme (£7,500, or £9,000 for oil and LPG homes), ECO4 (100% free for households on qualifying benefits), and the Warm Homes: Local Grant (up to £30,000 for low-income households in England). Which one applies to you depends on your income, benefits, and current heating system.
Boiler Upgrade Scheme
£7,500-£9,000
ECO4 (100% free)
£0
Warm Homes: Local Grant
£30,000
Average heat pump COP
3.87
How Many Ways Can You Get an Air Source Heat Pump Grant in 2026?
There are three funded routes to an air source heat pump in the UK in 2026. The Boiler Upgrade Scheme gives any homeowner £7,500 towards installation — rising to £9,000 if your home currently runs on oil or LPG. If you receive qualifying benefits like Universal Credit or Pension Credit, ECO4 covers the full cost at zero expense — but closes 31 December 2026. A third option, the Warm Homes: Local Grant, offers up to £30,000 for low-income households in England, administered by your local council.
| Route | Grant amount | Who qualifies |
|---|---|---|
| Boiler Upgrade Scheme (BUS) | £7,500 (any home) / £9,000 (oil or LPG, to 31 Mar 2027) | Any homeowner, England & Wales |
| ECO4 | 100% free | Benefits recipients, EPC D-G |
| Warm Homes: Local Grant | Up to £30,000 | Income under £36,000, England only |
0% VAT on heat pump installations continues until March 2027. Figures independently checked against Ofgem and GOV.UK as of 15 September 2026 — see sources throughout.
Who Is Free Boiler Upgrade UK, and What Do We Actually Do?
We're an independent eligibility-check and application-assistance service — not the government, an energy supplier, or an installer. We check which grant route you qualify for, handle the paperwork, and connect eligible households with MCS-certified and Gas Safe-registered installers, at no cost to you.
Funding for these schemes comes from the UK government (BUS, Warm Homes: Local Grant) or energy suppliers under regulatory obligation (ECO4) — not from us.
Bottom line —We check eligibility and arrange certified installers. Ofgem, your energy supplier, or your council decide and fund the grant itself.
Which of the Three Heat Pump Grant Routes Applies to You?
There's no single all-purpose heat pump grant — which route suits you depends on your income, benefits status, and current heating fuel.
£7,500-£9,000 grant · No income test
- £7,500 off — no income restrictions, any homeowner qualifies
- £9,000 if your home currently runs on oil or LPG (new from 21 Jul 2026, to 31 Mar 2027)
- England & Wales, replacing fossil fuel heating
- Funded to 2030 (Ofgem)
- Must use MCS-certified installer; 0% VAT until March 2027
You pay: roughly £500-£6,500 after the grant, depending on property and installer.
Check BUS EligibilityFully funded · Closes 31 Dec 2026
- Receiving UC, Pension Credit, ESA, JSA, PIP, or similar
- Or qualify via LA Flex on low income (typically under £31,000 — councils set their own threshold)
- EPC rating D, E, F, or G
- Covers the heat pump plus radiators and insulation
- Confirmed to close 31 December 2026 — no successor announced
You pay: absolutely nothing
Apply for Free Heat PumpWarm Homes: Local Grant — Up to £30,000
A newer, directly government-funded route (not tied to benefits) for households earning under £36,000 in England, with EPC D-G rated homes. Offers up to £15,000 for low-carbon heating and £15,000 for insulation. Runs until March 2028, administered by your local council rather than an energy supplier — see the full details below.
Bottom line —On a qualifying benefit or under your council's LA Flex threshold? ECO4 covers the ASHP at £0. Not eligible for ECO4? The Boiler Upgrade Scheme still gives you £7,500 (or £9,000 on oil/LPG) off, regardless of income.
How Does the £7,500 (or £9,000) Boiler Upgrade Scheme Work?
The BUS is a government grant administered by Ofgem on behalf of the DESNZ, providing £7,500 towards an air source or ground source heat pump. Unlike ECO4, there's no income test — any homeowner in England or Wales can apply. The scheme's 2025/26 budget was set at £295 million, later authorised for over-allocation up to £395 million to keep pace with demand, and DESNZ confirmed in 2026 that BUS funding is committed through to March 2030.
New for 2026: £9,000 for Oil and LPG Homes
From 21 July 2026, homes currently heated by oil or LPG can claim an increased £9,000 grant toward an air source or ground source heat pump — a £1,500 uplift targeted at the roughly 1.7 million off-gas-grid households in England and Wales, where running costs are typically highest. The uplift doesn't apply to biomass boilers or air-to-air heat pumps, and it's time-limited: it's currently scheduled to close on 31 March 2027, while the standard £7,500 grant continues for gas-connected homes.
BUS Eligibility Requirements
You Must:
- Own the property (homeowner or landlord)
- Be in England or Wales
- Replace fossil fuel heating (gas, oil, LPG, coal)
- Have a valid EPC (within the last 10 years)
- Use an MCS-certified installer
You Cannot:
- Have already received a previous BUS grant
- Apply as a tenant (landlords apply on tenants' behalf)
- Be in Scotland (a separate Home Energy Scotland grant applies there)
- Apply for a new-build property
| Technology | BUS grant | Typical cost | You pay |
|---|---|---|---|
| Air source heat pump (air-to-water) | £7,500 (£9,000 oil/LPG) | £10,000-£16,000 | £500-£8,500 |
| Ground source heat pump | £7,500 (£9,000 oil/LPG) | £15,000-£35,000 | £6,000-£27,500 |
| Biomass boiler (off-gas rural only) | £5,000 | £10,000-£20,000 | £5,000-£15,000 |
| Air-to-air heat pump | £2,500 | £5,000-£8,000 | £2,500-£5,500 |
Sources: Ofgem BUS, DESNZ. Costs exclude VAT (0% on heat pumps until March 2027). Actual quotes vary by property, installer and region.
Bottom line —BUS gives every homeowner in England and Wales £7,500 off an ASHP with no income test — rising to £9,000 if you're replacing oil or LPG heating (until 31 March 2027). Funding itself is committed to March 2030; only the oil/LPG uplift is time-limited.
How Do You Get a 100% Free Heat Pump Through ECO4?
ECO4 funds 100% of the cost of an air source heat pump for eligible households — the best route if you receive qualifying benefits, or earn under your council's LA Flex income threshold (typically £31,000, though some councils set it higher). ECO4 was originally due to end 31 March 2026 but has been confirmed extended to 31 December 2026 following a government consultation. Unlike BUS, there is currently no confirmed successor to ECO4's supplier-funded model — the Warm Homes Plan and Warm Homes: Local Grant are the government's direct-funding alternatives going forward, not a like-for-like replacement.
Qualifying Benefits for a Free Heat Pump
Not on benefits? You may still qualify via LA Flex if your household income is under your council's threshold, or if someone in the household has a long-term health condition made worse by living in a cold home.
| Feature | ECO4 (free route) | BUS (£7,500-£9,000 grant) |
|---|---|---|
| Your cost | £0 — fully funded | £500-£8,500 after grant |
| Income test? | Yes — benefits, or LA Flex income limit | No — any homeowner |
| What's covered | Heat pump + insulation + radiators | Heat pump only |
| Deadline | 31 December 2026 | Funded to 2030 |
| Property type | EPC D-G, homeowners & tenants (landlord consent needed) | Any EPC, homeowners/landlords only |
| Installer | Arranged by your energy supplier | You choose (must be MCS-certified) |
Bottom line —Receiving a qualifying benefit, or under your council's LA Flex threshold? ECO4 covers the full ASHP cost — but apply before 31 December 2026, since there's no confirmed successor scheme at this level of funding.
What Is the Warm Homes: Local Grant, and Who Qualifies?
The Warm Homes: Local Grant is a £500 million, directly government-funded scheme delivered by local councils in England — not tied to benefits, and separate from ECO4's energy-supplier funding model. It launched on 1 April 2025 and is expected to run until 31 March 2028.
Eligible households can receive up to £15,000 for low-carbon heating (such as an air source heat pump) plus a further £15,000 for insulation — up to £30,000 in total. It's for households in England earning under £36,000 a year, or receiving a means-tested benefit such as Universal Credit, Pension Credit or Housing Benefit, with a home rated EPC band D-G.
Because it's administered by your local council rather than an energy supplier, exact delivery timelines and priority areas vary — contact your council directly, or let us point you to the right team. See also our Warm Homes Plan guide for how this fits alongside ECO4's eventual successor.
Bottom line —Not tied to benefits, and stacks with council discretion — if you're in England, earning under £36,000, and your EPC is D-G, ask your council about Warm Homes: Local Grant even if BUS or ECO4 don't fit.
Is a Heat Pump Actually Cheaper to Run Than a Gas Boiler?
This is the question most homeowners actually want answered before they commit. The honest answer: it depends heavily on your electricity tariff.
At the current Ofgem price cap (1 July-30 September 2026: electricity around 26p/kWh, gas around 7.3p/kWh), running costs for a well-installed heat pump and a modern gas boiler are broadly comparable for a typical UK home — sometimes slightly cheaper for the heat pump, sometimes slightly cheaper for gas, depending on your home's insulation and the heat pump's real-world efficiency (SCOP). Where heat pumps pull ahead decisively is on a dedicated heat pump tariff, such as Octopus Cosy, where off-peak rates can bring running costs down by £200-£400 a year compared with gas.
| Factor | Air source heat pump | Gas boiler |
|---|---|---|
| Efficiency | 290-400% (SCOP 2.9-4.0) | 85-92% |
| Annual running cost (standard tariff) | Broadly comparable to gas — varies by SCOP and insulation | Broadly comparable to a heat pump |
| On a heat pump tariff | Typically £200-£400/yr cheaper than gas | N/A |
| Lifespan | 20-25 years | 10-15 years |
| Annual maintenance | £100-£200 | £80-£150 |
| CO₂ emissions | ~70% less than gas | ~2.2 tonnes CO₂/year (typical) |
Sources: Ofgem Q3 2026 price cap, Energy Saving Trust. Figures are averages for a typical 3-bed semi-detached home — your own numbers depend on insulation, radiator sizing and tariff.
Bottom line: don't expect a dramatic day-one saving on a standard tariff. The financial case for a heat pump in 2026 rests on three things together — the £7,500-£9,000 grant cutting the upfront cost, a heat pump tariff cutting the running cost, and a 20-25 year lifespan roughly double that of a gas boiler.
Savings If You're Replacing Oil or LPG
Off-gas-grid homes see the clearest savings, which is also why the £9,000 BUS uplift specifically targets them:
Replacing an Old Gas Boiler
Save £100-£280
per year (with a heat pump tariff)
Replacing Oil Heating
Save £400-£700
per year
Replacing LPG Heating
Save £800-£1,200
per year
Related reading: if you're coming off oil or LPG specifically, see our full oil and LPG conversion guide, or compare this scheme against the alternatives in ECO4 vs Other Schemes.
Bottom line —Running costs are broadly comparable to gas on a standard tariff — the real saving comes from stacking the £7,500-£9,000 grant, a heat pump tariff, and a 20-25 year lifespan roughly double a gas boiler's.
How Does an Air Source Heat Pump Actually Work?
An ASHP extracts heat from outdoor air — even down to around -15°C to -25°C — and compresses it to heat your home and hot water. Real-world fleet data published by Octopus Energy puts the average coefficient of performance (COP) of UK-installed heat pumps at 3.87, meaning roughly 3.87 kWh of heat is produced for every 1 kWh of electricity used. Independent seasonal averages (SCOP) across the wider UK installed base tend to sit a little lower, in the 2.9-3.6 range, reflecting differences in installation quality and home insulation.
1. Absorb
A fan draws outdoor air over a refrigerant-filled evaporator
2. Compress
The compressor raises the refrigerant's temperature to 55-65°C
3. Heat
A heat exchanger transfers that warmth to your radiators or underfloor system
4. Repeat
The refrigerant cools and cycles back to absorb more heat
Key Advantages Over Gas Boilers
Higher Efficiency
290-400% efficient vs 85-92% for a gas boiler
Works in UK Winters
Modern units operate down to around -15°C to -25°C
Heating & Hot Water
One unit replaces your boiler for both
Low Maintenance
Annual servicing costs £100-£200, no Gas Safe requirement — heat pumps don't burn gas
20-25 Year Lifespan
Roughly double a gas boiler's lifespan
No Gas Dependency
Ready for the UK's net zero 2050 target
Bottom line —An ASHP delivers roughly 3.87 kWh of heat per 1 kWh of electricity in real-world fleet data (seasonal SCOP typically 2.9-3.6), works down to -15°C to -25°C, and lasts 20-25 years — roughly double a gas boiler's lifespan.
What Do ASHP, COP, BUS and LA Flex Actually Mean?
- ASHP
- Air Source Heat Pump — a heating system that extracts heat from outdoor air and compresses it to warm your home and hot water, even down to around -15°C to -25°C.
- BUS
- Boiler Upgrade Scheme — a government grant administered by Ofgem on behalf of DESNZ, giving homeowners in England and Wales £7,500 (or £9,000 for oil/LPG homes) toward a heat pump, funded to March 2030.
- ECO4
- The fourth and current phase of the Energy Company Obligation, requiring large energy suppliers to fund free heating upgrades — including heat pumps — for eligible households, running until 31 December 2026.
- LA Flex
- Local Authority Flexible Eligibility — the ECO4 route that lets your council approve funding for households that don't receive a qualifying benefit, typically on a low-income or health-vulnerability basis.
- COP / SCOP
- Coefficient of Performance / Seasonal COP — a measure of heat pump efficiency: how many kWh of heat are produced per kWh of electricity used. Octopus Energy's UK fleet average COP is 3.87; seasonal averages (SCOP) typically sit at 2.9-3.6.
- Warm Homes: Local Grant
- A council-administered, directly government-funded scheme offering up to £30,000 (split between heating and insulation) for England-based households earning under £36,000, running until March 2028.
- MCS
- Microgeneration Certification Scheme — the UK quality standard installers must hold to carry out BUS-funded heat pump installations.
- EPC
- Energy Performance Certificate — a government-issued A-G rating of a property's energy efficiency, valid for 10 years. ECO4 requires band D-G.
What Happens If You Don't Qualify?
Not everyone will get a free or heavily-discounted heat pump, and it's worth knowing your options if that's you:
- Don't qualify for ECO4 benefits, but on a modest income? Check LA Flex with your local council — thresholds and health-condition routes vary by area.
- Above the LA Flex threshold too? The Boiler Upgrade Scheme has no income test at all — every homeowner in England and Wales can claim £7,500 (or £9,000 on oil/LPG), regardless of earnings.
- Renting? ECO4 covers tenants with landlord consent; BUS is only available to homeowners and landlords, not tenants applying directly.
- In Scotland? BUS doesn't apply — Home Energy Scotland offers a broadly comparable grant and interest-free loan package instead.
- Property doesn't meet EPC requirements? An EPC review, and sometimes a low-cost insulation upgrade first, can bring a home back into scope for ECO4 or Warm Homes: Local Grant.
Bottom line —No route is a dead end — BUS has no income test, ECO4 covers tenants with landlord consent, and an EPC review can requalify a property that's currently just outside the bands.
How Long Does It Take to Get a Heat Pump Installed?
Check Your Eligibility (2 Minutes)
Your postcode, benefits status, and current heating type tell us which route(s) you qualify for — BUS, ECO4, Warm Homes: Local Grant, or a combination.
Check Eligibility NowFree Home Survey
An MCS-certified surveyor assesses suitability, measures heat loss, and sizes the right heat pump for your home. No cost, no obligation.
Grant Application
For BUS, your installer applies to Ofgem on your behalf. For ECO4, we handle the application through the energy supplier. No paperwork for you either way.
Installation (Typically 1-3 Days On Site)
MCS-certified engineers fit and commission the unit, connecting it to your heating system.
Handover
Full user guide, ongoing support, and manufacturer warranty cover from day one.
Be realistic about lead time: MCS-certified installers in many parts of the UK currently carry waiting lists of several weeks before a survey slot is even available, so the constraint on timing is usually installer capacity, not grant funding running out.
Bottom line —Most homeowners go from a 2-minute eligibility check to a finished install in a matter of weeks — but installer waiting lists, not grant funding, are usually what sets the pace in 2026.
Frequently Asked Questions
Common questions about air source heat pump grants in the UK.
How much is the air source heat pump grant in 2026?
The Boiler Upgrade Scheme gives £7,500 to any homeowner in England or Wales, rising to £9,000 if your home currently runs on oil or LPG (from 21 July 2026 to 31 March 2027). ECO4 covers the full cost for benefits recipients with EPC D-G rated homes.
Can I get a free heat pump on Universal Credit?
Yes. Universal Credit recipients typically qualify for a fully-funded air source heat pump through ECO4, covering installation and equipment at zero cost, provided your home's EPC rating is D, E, F or G. ECO4 is confirmed to close 31 December 2026.
What is the new £9,000 heat pump grant?
From 21 July 2026, the Boiler Upgrade Scheme pays £9,000 (up from £7,500) toward an air source or ground source heat pump for homes currently heated by oil or LPG. It's scheduled to run until 31 March 2027 and doesn't apply to biomass boilers or air-to-air units.
How much does a heat pump cost after the grant?
Typical air source heat pump installation costs £10,000-£16,000. After the £7,500 (or £9,000) BUS grant and 0% VAT, most homeowners pay somewhere between £500 and £8,500, depending on property size and installer.
Are heat pumps cheaper to run than gas boilers?
At the current Ofgem price cap, running costs are broadly comparable on a standard electricity tariff. On a dedicated heat pump tariff, such as Octopus Cosy, most households save £200-£400 a year compared with gas.
Do heat pumps work in cold UK weather?
Yes. Modern air source heat pumps operate reliably down to around -15°C to -25°C. Real-world performance varies by installation quality — Octopus Energy's UK fleet data shows an average COP of 3.87.
How long do air source heat pumps last?
Typically 20-25 years, compared with 10-15 years for a gas boiler. Annual maintenance runs £100-£200.
What is the Warm Homes: Local Grant?
A council-administered scheme offering up to £15,000 for low-carbon heating plus £15,000 for insulation (£30,000 total) for England-based households earning under £36,000, with EPC D-G rated homes. It runs until March 2028.
Do I need planning permission for a heat pump?
Most air source heat pumps fall under permitted development rights in England and Wales, so planning permission usually isn't needed. The outdoor unit typically needs to sit at least 1 metre from the property boundary.
What happens if I don't qualify for either scheme?
The Boiler Upgrade Scheme has no income test, so most homeowners who miss ECO4 and LA Flex can still claim £7,500 (or £9,000 on oil/LPG). If you're below the LA Flex threshold but not on benefits, ask your council about LA Flex directly.
Sources & References
gov.uk — Boiler Upgrade Scheme: what you can get
£7,500 / £9,000 grant amounts, funded to 2030
Ofgem — Boiler Upgrade Scheme (BUS)
Eligibility rules, installer requirements
Ofgem — Energy price cap, 1 Jul-30 Sep 2026
Electricity ~26p/kWh, gas ~7.3p/kWh
gov.uk — Energy Company Obligation (ECO4)
Scheme overview, closing 31 December 2026
gov.uk — Apply for the Warm Homes: Local Grant
Up to £30,000, income under £36,000, runs to March 2028
Octopus Energy — Heat pump running cost & savings
UK fleet COP data (3.87 average)
Energy Saving Trust — Air source heat pumps
Lifespan, maintenance and efficiency guidance
MCS — Microgeneration Certification Scheme
Installer accreditation standard for BUS
TrustMark — government-endorsed quality scheme
Consumer-protection standard for our installer network
Gas Safe Register
Statutory register for gas engineers in the UK
Planning Portal — Heat pumps: do you need permission?
Permitted development rights guidance
Published: . Last updated: . Author: Peter Davies, ECO4 Analyst.
Revision history
- — Full content rebuild from the approved editorial brief. Added the £9,000 oil/LPG BUS uplift (21 Jul 2026-31 Mar 2027), a dedicated Warm Homes: Local Grant section, the "what happens if you don't qualify" section, glossary, sources list and this revision log. Rewrote the running-costs guidance to the more defensible "broadly comparable on a standard tariff, £200-£400/yr cheaper on a heat pump tariff" framing, and re-confirmed ECO4's 31 December 2026 close date and the BUS £295m/£395m 2025/26 budget figures against live Ofgem, DESNZ and gov.uk sources.
- — Restyled onto the shared service-page section kit (hero, jump-nav, FAQ accordion, reading-progress bar) to match the other main service pages. No body copy changed in that pass.
- — Page first published.
Air Source Heat Pump Grant: Summary
Free Boiler Upgrade UK is an independent eligibility-check and application-assistance service, connecting eligible UK households nationwide with MCS-certified and Gas Safe registered installers across three funded routes to an air source heat pump in 2026.
The Boiler Upgrade Scheme gives any homeowner in England or Wales £7,500 toward an ASHP, rising to £9,000 for homes on oil or LPG until 31 March 2027, with no income test. ECO4 covers the full cost — £0 — for households on a qualifying benefit or under their council's LA Flex threshold, but closes 31 December 2026. The Warm Homes: Local Grant offers up to £30,000 (heating plus insulation) for English households earning under £36,000, running until March 2028.
Running costs sit broadly level with gas on a standard tariff, but drop £200–£400 a year cheaper on a dedicated heat pump tariff such as Octopus Cosy. A modern ASHP typically lasts 20–25 years — roughly double a gas boiler's lifespan — with real-world fleet efficiency averaging a COP of 3.87.
We've helped 7,000+ UK households through this process; check your own eligibility in a couple of minutes below — approval always depends on survey and provider sign-off, not a guaranteed outcome.
Related Guides
ECO4 Scheme 2026
The full ECO4 scheme guide, routes and deadline
Read guideCheck Eligibility
2-minute BUS + ECO4 + Warm Homes eligibility check
Read guideFree Boiler Grant
Gas boiler replacement under ECO4
Read guideWarm Homes Plan 2027
What replaces ECO4 once it closes in December 2026
Read guideECO4 vs Other Schemes
How ECO4 compares to BUS and Warm Homes
Read guideLA Flex Scheme
Qualify on income, not just benefits
Read guideEPC Checker
Look up your property's EPC band
Read guideApply Now
Start your heat pump grant application
Read guideCheck Your Heat Pump Grant Eligibility
Covers all three grant routes in one two-minute check — the Boiler Upgrade Scheme (£7,500, or £9,000 for oil/LPG homes), ECO4 (100% free via qualifying benefits or LA Flex), and Warm Homes: Local Grant (up to £30,000 through your council).
Ready to Get Your Heat Pump Grant?
Whether you qualify for a 100% free heat pump through ECO4, £9,000 off through the Boiler Upgrade Scheme, or up to £30,000 through Warm Homes: Local Grant, our team has helped 7,000+ UK households upgrade their heating. Check your eligibility in a couple of minutes — no obligation, no cost.