Thousands of households across England and Wales will soon be able to claim up to £9,000 towards the cost of installing a heat pump, as the government increases funding to help rural
homes move away from heating oil.
From 21 July, the Boiler Upgrade Scheme grant will rise by 20%, increasing from £7,500 to £9,000 for eligible households that currently rely on heating oil. The enhanced support is aimed primarily at rural communities, where off-grid homes are more likely to depend on oil-fired heating systems.
The increased grant is designed to help families switch to low-carbon heating while reducing their exposure to volatile fossil fuel prices. By replacing oil boilers with electric heat pumps, households are expected to benefit from greater certainty over future energy costs and lower carbon emissions.
Around 200,000 eligible households across England and Wales will receive information through the post this week, outlining how they can apply for the higher level of funding.
The move forms part of the government's wider strategy to accelerate the transition to cleaner home heating technologies and reduce reliance on fossil fuels.
Minister for Energy Consumers Martin McCluskey said:
“This government is determined to bring down energy bills, but I know the war in the Middle East has hit households on heating oil especially hard.
We have already taken action to support these households through confirming over £50 million in support for vulnerable customers on heating oil.
Now, the Boiler Upgrade Scheme will help thousands of families across England and Wales switch to clean heat to protect them from volatile fossil fuels.
The Boiler Upgrade Scheme uplift runs alongside measures that the Energy Secretary set out earlier in the year to help cut bills for families and deliver more clean, homegrown power.
The Social Housing Fund will receive a £100 million boost to support the delivery of up to 57,000 solar installations for households in England this financial year. The measures will cut bills by hundreds of pounds and support up to one million homes reach EPC C.
Additionally, to build on the success of Great British Energy’s solar scheme, the government is backing the company to extend support for more rooftop solar installations on a further 100 schools and colleges this year alone.
The Warm Homes Plan, available to all households, will help roll out clean technology to millions, cutting bills and securing thousands of good jobs”.
Charlotte Lee, CEO, Heat Pump Association UK, said:
“The Boiler Upgrade Scheme continues to play a vital role in supporting households to adopt heat pumps, and this £1,500 uplift will make the transition significantly more affordable for the thousands of oil-heated homes.
Many of these households have faced considerable price uncertainty in recent months, without the protection of the energy price cap, and this £9,000 grant will help shield families from volatile fossil fuel costs, by using home grown electricity, in the years ahead”.
Ian Rippin, CEO at MCS, said:
“This uplift is an important step in making heat pumps more accessible to rural households, allowing them to see the benefits the technology can offer.
As the UK’s quality mark for small-scale renewables like heat pumps, our mission is to give everyone confidence in home-grown energy.
We do this by setting the standards you should always expect from an MCS certified installer and the products they use, while providing robust protections to give you peace of mind in your investment.
Households considering making the switch to a heat pump with the help of the BUS can search for an MCS certified installer near them using our Find an Installer tool”.
Matt Copeland, Head of Policy and Public Affairs at National Energy Action says:
“This is a positive step for households relying on heating oil, who have recently faced the highest and most volatile energy costs.
Many families will be expecting to ration their heating in the coming winter, living in homes they cannot afford to keep warm, not through choice but constraint.
Supporting the shift to cleaner heating in these homes can help deliver greater stability and lower bills.
The real test will be whether this support reaches those most at risk and makes homes genuinely affordable to heat”.
