Government Announces Proposed Increase to Heat Pump Grants for Oil & LPG Homes

The UK Government has announced plans to increase the Boiler Upgrade Scheme (BUS) grant available to households currently using heating oil or LPG systems.

Under the proposed changes, eligible properties in England and Wales could receive up to £9,000 towards an air source heat pump installation, increasing the current £7,500 grant available through the scheme.

While the increase has been announced by ministers, the updated grant structure is not yet fully in place, with implementation expected later in 2026.

Why the Government Is Reviewing Support

The announcement follows significant increases in heating oil prices earlier this year, which affected many off-grid homes across the UK.

Unlike properties connected to the gas grid, households using heating oil or LPG are not protected by the Ofgem energy price cap, making them more vulnerable to fluctuations in global fuel prices.

The proposed grant increase is intended to help more households transition away from fossil fuel heating systems and move towards lower-carbon alternatives such as air source heat pumps.

What Is the Boiler Upgrade Scheme?

The Boiler Upgrade Scheme provides financial support towards replacing traditional fossil fuel heating systems with renewable alternatives, including air source heat pumps.

At the time of writing:

• The standard grant remains at £7,500

• The proposed increase to £9,000 is expected to apply specifically to eligible oil and LPG properties once implemented

Further guidance and confirmation are expected from the Government later this year.

Why More Homeowners Are Considering Heat Pumps

As energy costs continue to fluctuate, many homeowners are exploring alternatives to oil and LPG heating systems.

Modern air source heat pumps can provide:

• Efficient heating and hot water

• Reduced carbon emissions

• Greater long-term energy stability

• Lower reliance on delivered fuels such as heating oil

For many off-grid properties, heat pumps are becoming an increasingly practical long-term solution.

Every Property Should Be Assessed Individually

While grant support can significantly reduce upfront costs, every property should still be assessed carefully before moving to a heat pump system.

Factors such as insulation levels, heat loss, existing radiators, and overall system design all influence suitability and performance.

A properly designed system is essential to ensure comfort, efficiency, and long-term reliability.

Expert Heat Pump Design & Installation

At Aspen AC & Renewables, we provide professional air source heat pump design, installation, and servicing for homes and businesses across the UK.

Our team carries out detailed site surveys and heat loss assessments to ensure systems are designed correctly for each property and its requirements.

We also stay up to date with the latest Boiler Upgrade Scheme developments and can help customers understand the support currently available.

Considering Replacing an Oil or LPG Boiler?

If you’re currently using oil or LPG heating and would like advice on renewable alternatives, our team can help.

Call us on 01323 849955 Or contact Aspen AC & Renewables to arrange a free site survey.

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