Grants

Heating With Oil or LPG? The Boiler Upgrade Scheme Pays £9,000, Not £7,500 — Until March 2027

Most coverage of the Boiler Upgrade Scheme quotes a flat £7,500. For one group of households it is £9,000 — and unlike the scheme itself, the extra £1,500 has a deadline in March 2027.

By Energy Pages

The Boiler Upgrade Scheme is usually described as a flat £7,500 towards a heat pump. For most households that is right. For households heated by oil or LPG with no mains gas connection, it is wrong by £1,500 — and that £1,500 expires well before the scheme does.

The wording on GOV.UK is precise about who qualifies:

Until March 2027, you can get an additional £1,500 towards an air source heat pump or ground source heat pump if both:

  • your property is heated by oil or LPG
  • you do not have a mains gas connection at the property

Both conditions have to be true. A property on mains gas that happens to use an LPG bottle for a hob does not qualify; neither does an off-grid property already heated by electricity. It applies to both air source and ground source systems, which matters because ground source is more common in exactly this kind of rural property.

Why this group, and why now

The uplift is not arbitrary. Off-gas-grid homes are the hardest and most expensive to decarbonise, and they are also the ones where a heat pump makes the most straightforward financial sense — because the alternative is oil or LPG rather than mains gas.

There is a regulatory asymmetry underneath that which rarely gets stated plainly. The Ofgem price cap covers domestic gas and electricity. It does not cover heating oil or LPG, which are bought on the open market at whatever the delivery price is on the day. A household on oil carries a fuel-price exposure that a household on mains gas does not, and no cap sits between them and it.

That is the case for the uplift, and it is also the reason the deadline is worth taking seriously rather than filing away.

The deadline is on the uplift, not the scheme

These are two different dates and they are easy to conflate.

Applications to the Boiler Upgrade Scheme itself run until 31 December 2029, extended from 31 December 2027 by S.I. 2026/390. The additional £1,500 runs until March 2027. A household that qualifies today and installs in, say, mid-2027 would still get the £7,500 — and would have missed the extra £1,500 by a matter of months.

Heat pump installations are not quick. A survey, a heat-loss calculation, an MCS-certified installer’s schedule and, frequently, insulation work first will fill more of a year than most people expect. Anyone in the qualifying group who is minded to do this at all should be getting quotes on a timescale that assumes the work takes longer than planned.

What the grant pays, in full

As things stand:

MeasureGrant
Air source heat pump£7,500
Ground source heat pump (including water source and shared ground loops)£7,500
Biomass boiler£5,000
Additional, oil or LPG heated with no mains gas connection, until March 2027£1,500

So the maximum for a qualifying off-gas-grid property is £9,000 towards an air source or ground source heat pump.

The grant is claimed by the installer rather than the householder — it comes off the quoted price, and the installer must be MCS-certified. Correction, 18 September 2026: this article said the property would usually need a valid EPC with no outstanding recommendations for loft or cavity wall insulation, and named it the most common reason an application stalls. That requirement was removed on 28 April 2026 by S.I. 2026/390, before this piece was published, so it was wrong when written. There is no EPC gate on the grant. Insulation still affects how well a heat pump performs and an installer will raise it, but it no longer stops an application. That prerequisite catches out a lot of older rural housing stock, and it is worth checking before committing to anything.

What to confirm before assuming you qualify

Three things settle it, and none of them requires a salesperson:

Your heating fuel and gas connection status. Both conditions must hold. If there is a live mains gas supply to the property, the uplift does not apply even if nothing is currently burning gas.

Your EPC. Check whether it carries outstanding loft or cavity wall insulation recommendations, and how old it is. This is the most common reason an otherwise straightforward application stalls.

The installer’s MCS certification. The grant cannot be claimed without it. It is a matter of public record and takes a minute to verify.

The Boiler Upgrade Scheme guide sets out the application route and the insulation prerequisites in full, and the heat pump guide covers what the technology does and does not suit — including older properties, which is where most off-gas-grid housing sits.


Figures verified against GOV.UK’s Boiler Upgrade Scheme guidance on 13 August 2026. Grant schemes change, sometimes without much notice — confirm the current position on GOV.UK before making a decision. Energy Pages is an independent information service, not a government body, a delivery agent or an installer.

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