The Boiler Upgrade Scheme explained: the 7,500 GBP grant

The Boiler Upgrade Scheme, often shortened to BUS, is a UK government grant administered by Ofgem that pays 7,500 GBP towards the cost of installing an air source heat pump in England and Wales. It also covers ground source heat pumps and certain biomass boilers, but air source is by far the most common choice. The grant is a fixed cash amount, not a loan and not a percentage, and there is no income test, so it is open to most homeowners regardless of earnings. Its purpose is to close the gap between the cost of a heat pump and a like-for-like fossil-fuel boiler, making low-carbon heating affordable for ordinary households. Because it is a flat amount, it takes a larger proportional bite out of a smaller installation. On a typical Bedfordshire install of around 11,000 GBP, the grant cuts the bill to roughly 3,500 GBP.

Eligibility for the Boiler Upgrade Scheme is refreshingly simple compared with income-based grants. To qualify you must own the property, which can be your home or a small non-domestic building, and you must be replacing a fossil-fuel heating system such as a gas, oil or LPG boiler, or in some cases an older electric system. You need a valid Energy Performance Certificate for the property, generally one issued within the last ten years. The installation must be carried out by an MCS-certified installer who is a member of an approved consumer code. New-build homes are normally excluded, as the scheme is aimed at existing properties, and the heat pump must meet the scheme's efficiency and capacity rules, which your installer handles. There is no income or benefit test, which is the key difference from ECO4 and the Warm Homes Local Grant.

• You own the home or small business premises.
• You are replacing fossil-fuel or older electric heating.
• You hold a valid EPC for the property.
• An MCS-certified installer carries out the work.

The best part of the Boiler Upgrade Scheme is that you barely have to do anything to claim it. The whole application sits with your installer, not with you. Once you have chosen an MCS-certified installer and agreed to go ahead, they apply to Ofgem for the grant on your behalf, the grant is reserved against your installation, and the 7,500 GBP is taken straight off your quote. You pay only the discounted balance, and you never have to front the full cost and reclaim it later. The practical steps look like this.

1. Get quotes from MCS-certified installers and compare them.
2. Choose your installer and confirm the quote is net of the grant.
3. The installer applies to Ofgem and reserves the 7,500 GBP.
4. The work is carried out and registered with MCS.
5. You pay the reduced balance once the job is signed off.

You cannot claim the Boiler Upgrade Scheme alongside ECO4 or the Warm Homes Local Grant for the same heat pump, because all three are public funding for the same measure and the rules prevent double-dipping. In practice you pick the single best route for your situation. If you are a lower-income household in an EPC D to G home, ECO4 or the Warm Homes Local Grant may cover most or all of the cost, so they usually beat the fixed 7,500 GBP. If you do not meet those income tests, the Boiler Upgrade Scheme is your route, as it has no income condition. Insulation grants such as the Great British Insulation Scheme are different: they fund a separate measure, so you can often use them first to prepare your home before the heat pump goes in. Our Bedford grants guide compares every option side by side.

The Boiler Upgrade Scheme pays a fixed 7,500 GBP towards an air source heat pump, and exactly the same 7,500 GBP towards a ground source heat pump. From 21 July 2026 to 31 March 2027, off-gas-grid homes replacing an oil or LPG boiler can get an uplifted 9,000 GBP instead. The headline point is that the grant is a fixed cash contribution, not a percentage of the bill, so it covers a bigger share of a cheaper installation and a smaller share of an expensive one. On a straightforward Bedfordshire install priced at around 11,000 GBP, the 7,500 GBP grant leaves roughly 3,500 GBP to pay. On a larger or more complex property the same 7,500 GBP still applies, so the balance you pay is higher. Because the amount is set in advance, you can work out your likely net cost as soon as you have a quote, without waiting on a means test or a percentage calculation.

The Boiler Upgrade Scheme is aimed at existing homes rather than new builds. To qualify you must own the property, either as an owner-occupier or a private landlord, and it must be in England or Wales. You need a valid Energy Performance Certificate in place, and you must be replacing a fossil-fuel system such as gas, oil or LPG, or a direct electric heating system. New-build homes are generally excluded, as is most social housing, since those are funded through other routes. Crucially, there is no income test at all, which sets the scheme apart from ECO4 and the Warm Homes Local Grant. That makes it the default option for the majority of Bedford and Bedfordshire homeowners who are simply replacing an ageing boiler.

• You own the property as an owner-occupier or private landlord.
• The home is in England or Wales.
• You hold a valid Energy Performance Certificate.
• You are replacing a fossil-fuel or direct electric system.
• New builds and most social housing are excluded.
• There is no income test to pass.

One of the most reassuring parts of the Boiler Upgrade Scheme is that you never apply for it yourself. An MCS-certified installer applies to Ofgem on your behalf, the grant is approved as a voucher tied to your installation, and the installer then discounts the amount directly from your quote, so you only ever pay the balance. You do not have to front the full cost and reclaim it later. The flip side is that the certification matters a great deal: without MCS certification the grant simply cannot be claimed at all. That is why choosing an MCS-certified installer is essential rather than optional. When you compare quotes, check that each company is MCS-certified and that the price you are shown is already net of the grant, so you are comparing like with like. A reputable installer will make all of this clear in writing before any work begins.

If your property meets every line in this checklist, you are very likely eligible for the 7,500 GBP grant, or 9,000 GBP if you are off-gas-grid and replacing an oil or LPG boiler in the uplift window. The only way to confirm it for your specific home is to get a quote from an MCS-certified installer, who will check your EPC and system before applying.