Boiler Upgrade Scheme: Get up to £7,500 off greener home heating

Find out more about the UK Government's Boiler Upgrade Scheme and how it can benefit you.

Thinking of ditching your old gas boiler? Now might be the perfect time.

The UK government is offering up to £7,500 towards the cost of a heat pump through the Boiler Upgrade Scheme — one of the most generous heating grants in Europe. Whether you're after lower energy bills, a warmer home, or just want to future-proof your place, this scheme makes greener heating much more doable.

What's on offer?

As of October 2023, you can get:

  • £7,500 off an air source heat pump
  • £7,500 off a ground or water source heat pump
  • £5,000 off a biomass boiler (for homes off the gas grid)

If you applied before the increase was announced and haven’t had your system installed yet, you can cancel and reapply for the higher grant.

Why switch to a heat pump?

Heat pumps don’t burn gas. Instead, they use electricity to extract heat from the air or ground and they can be incredibly efficient. In fact, for every unit of electricity they use, they can give you 2 to 3 units of heat.

That means:

  • Lower bills over time (especially if paired with good insulation)
  • Less maintenance than a traditional boiler
  • More stable temperatures year-round
  • A big cut in your home’s carbon footprint

Are they easy to install?

They’re easier than you might think. A qualified installer can usually get the job done in a few days. Air source heat pumps are the most common and can work with your existing radiators (though you may need upgrades if yours are very old or small).

There are two main types:

  • Air source heat pumps – Best for most UK homes
  • Ground source heat pumps – More efficient but costlier and need digging space

Can anyone get the grant?

Most homeowners in England and Wales can apply. The system needs to:

  • Be installed by an MCS-certified installer
  • Replace a fossil fuel system (like gas, oil or direct electric)
  • Have a capacity under 45kWth

Hybrid systems (like a heat pump + gas boiler combo) aren’t eligible.

Your installer will handle the grant application on your behalf.

What else is the government doing?

Beyond the Boiler Upgrade Scheme, the government has launched:

  • A £10 million "Heat Pump Ready" programme, which funds trials to bring down installation costs, improve local supply chains, and speed up adoption.
  • The "Welcome Home to Energy Efficiency" campaign, aimed at helping households find practical ways to cut their energy use and bills — like better insulation, smart thermostats, and switching to greener tech.

Final thought

If you’ve been putting off replacing your boiler, now’s the time to take a serious look at heat pumps. With a £7,500 head start, greener heating isn’t just good for the planet — it might be a smart move for your wallet too.

Want to see if your home could benefit?

👉 Check your EPC and get a free Green Home Plan in the Tandem app

Sources:

https://www.gov.uk/apply-boiler-upgrade-scheme/what-you-can-get

https://www.gov.uk/government/news/heat-pump-grants-increased-by-50-per-cent

https://www.gov.uk/government/news/five-reasons-to-get-a-heat-pump

Julian Nutley
Julian Nutley
Your Greener Home Expert

Julian (or just Jules, if you ask anyone here) is Tandem’s Greener Home Expert. He’s spent years helping people across the UK upgrade their homes to be warmer, greener, and cheaper to run. As MD of Home Improvement Loans, he works with many leading businesses in the industry to make things like solar panels actually doable. His goal? Cut your bills, shrink your carbon footprint, and make home improvements less of a faff.

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