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The 21 July 2026 Boiler Upgrade Scheme change, explained

On 21 July 2026 the approved grant categories and values for the Boiler Upgrade Scheme changed. Most of what is written about the scheme still says £7,500 and stops there.

Published 13 August 2026

The grant comes off the quote before you pay it: an installer registered with the Microgeneration Certification Scheme applies for it and deducts it, so you never handle the money. That makes the grant value a direct line in your budget rather than something you claim back later, which is why a change in the rates is worth more than a footnote.

The rates as they stand today

Four technologies carry a grant. An air source or ground source heat pump is £7,500, rising to £9,000 off the gas grid where what comes out runs on oil or LPG. An air-to-air heat pump is £2,500 either way. A biomass boiler is £5,000, off the gas grid and rural only. The grants page linked below prints the full table with the condition on each row.

What actually changed

Three lines make up the change, and the grants page sets them out against the notice they come from. Two are new money: air-to-air became a category in its own right at £2,500, and off the gas grid an air source or ground source pump replacing oil or LPG gained £1,500, an uplift running until March 2027.

The last line is the one most articles miss, because nothing moved there at all. On the gas grid, replacing a gas boiler with an air source heat pump, the figure is still £7,500. A rate rise you read about is not a rate rise you can have, and here the difference is the gas main in the street.

Who is better off

  • Households off the gas grid replacing oil or LPG. The grant for an air source or ground source heat pump is £9,000 instead of £7,500, so £1,500 more comes off the quote, and it runs until March 2027. Coal, electric heating that is not a heat pump, and fossil fuel hybrids all stay at the standard rate.
  • Flats and small houses that could never justify a wet system. An air-to-air heat pump is now a category of its own at £2,500, and it needs no radiators or cylinder. For a small property that is the difference between a scheme that was open to you in theory and one you can use.
  • Nobody else, at least not yet. On the gas grid the figure is still £7,500, and a biomass boiler is still £5,000 off the gas grid in a rural location.

The catch on the machine that also cools

An air-to-air heat pump is the type that heats and cools, the same box people shop for in a hot July. Two separate rules point the same way, and they are worth seeing together before you buy.

  • The grant pays for replacing a fossil fuel heating system. A unit bought purely to cool the bedroom is not what this money is for, and the eligibility conditions ask what you are replacing.
  • The planning rules in England agree. The permitted development conditions for the outdoor unit require that it is "Not used solely for cooling purposes", so a cooling-only machine falls outside those rights and needs a planning application.

So the reversible unit that qualifies for the grant is also the one that can sit inside permitted development, and the cooling-only unit gets neither. Which one you are being quoted is a question for the quote, not for after the installation.

Announced is not availableHeat batteries were announced alongside air-to-air at the same £2,500, and they are still not in the approved categories. Treat a quote that already promises that money with caution: the announcement tied it to standards that have to come into force first, and the grants page carries the dates.

What did not change

The conditions stayed where they were, and that is worth saying: an article that puts a new hurdle next to the new rates is describing a scheme that does not exist. You still own the property, you are still replacing a fossil fuel system, and the certified installer still applies on your behalf inside a deadline. The grants page sets out all four conditions with the exclusions beside them.

The eligibility guidance sets no EPC rating condition and does not ask you to clear outstanding loft or cavity insulation recommendations first. That condition is repeated so widely that installers get asked about it, so it is worth knowing where it is not. The Boiler Upgrade Scheme is open to people in England and Wales. Scotland runs its own support, where an interest free loan or a grant may be available, and the Boiler Replacement Scheme in Northern Ireland has closed.

The dates that will date this article

  • 31 December 2026: ECO4 closes.
  • March 2027: the extra £1,500 for off gas grid properties replacing oil or LPG ends.
  • 31 March 2027: the 0% VAT rate on energy-saving materials ends, and 5% applies from 1 April 2027.

I would rather publish the expiry date than the confidence. Every figure above carries the date I checked it on gov.uk, and the grants page is where they get corrected first.

Sources

Where to go next

UK renovation grants

All four schemes side by side, including the two that are closing and the one that has already closed.

Heat pump or a new boiler?

What the grant does to the sums when you put the two systems next to each other.

Air conditioning cost

What an air-to-air system costs to install and to run, and the planning conditions for the outdoor unit.

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