Skip to main content
Grant update

Boiler Upgrade Scheme £9,000 grant for oil and LPG homes

Updated June 2026: the GOV.UK approved values notice now confirms the £9,000 oil and LPG uplift starts on 21 July 2026. Here is what installers and homeowners should check before quoting or applying.

Updated check. The higher £9,000 value applies from 21 July 2026 to eligible off-gas grid oil and LPG replacements using air-to-water or ground source heat pumps. Energy Saving Trust describes the temporary window as running to 31 March 2027. · 6 min read

New July checklist: we have added a sharper installer guide for the confirmed 21 July start date. Read £9,000 BUS grant starts 21 July: what installers should check before quoting.
Updated 12 June 2026: the GOV.UK approved grant values notice is now titled from 21 July 2026 and lists £9,000 for eligible off-gas grid oil and LPG replacements using air-to-water or ground source heat pumps. Energy Saving Trust says the temporary extra funding window runs from 21 July 2026 to 31 March 2027.

Here is the practical split: the confirmed start date, which heating systems and heat pump types are in scope, and what installers should check before putting £9,000 into a quote.

What has been announced

Reporting published on 21 April 2026 says ministers are increasing the Boiler Upgrade Scheme grant from £7,500 to £9,000 for properties that currently rely on heating oil or LPG. The same reporting says the move is aimed at households and small businesses in England and Wales, especially in rural and off-grid areas facing sharp fuel-cost swings.

The live BUS framework already covers properties replacing fossil fuel systems such as oil, gas, electric or LPG. The change is the higher support level for a narrower off-grid group.

June 2026 update

The start date is now clearer. The GOV.UK approved-values notice updated on 9 June 2026 says the new grant categories and values are effective from 21 July 2026. It lists £9,000 for an eligible off-gas grid property replacing liquefied petroleum gas or oil with an air-to-water heat pump, and the same £9,000 value for eligible LPG or oil replacements using a ground source heat pump.

The same GOV.UK notice still separates other routes, including:

  • £7,500 for an air-to-water heat pump
  • £2,500 for an air-to-air heat pump
  • £7,500 for a ground source heat pump
  • £5,000 for a biomass boiler

That means the safest public wording has changed: the £9,000 oil and LPG route now has a stated GOV.UK effective date of 21 July 2026, but installers should still check the live application route and voucher timing before promising the deduction on a quote.

When does the £9,000 grant start?

The published start date is 21 July 2026. GOV.UK says the approved grant categories and values in the new notice are effective from that date. Energy Saving Trust describes the temporary extra funding for eligible off-gas grid oil and LPG properties as running from 21 July 2026 to 31 March 2027.

Before quoting the deduction, confirm it through the live application route. Existing voucher timing, application date, commissioning date, and the exact existing fuel evidence all matter.

Timing matters because customers may budget around the £9,000 figure before it is available for their job.

Why oil and LPG homes are being targeted

Source signalWhat it saysWhy it matters
HM Treasury / GOV.UK, 16 March 2026Government announced over £50 million of targeted support for households struggling with heating oil costs.This shows ministers were already treating off-grid fuel users as a separate pressure point before today's grant announcement.
CMA, 11 March 2026The regulator said heating oil powers around 1.5 million UK homes, mostly in rural areas, and launched an examination into complaints about cancelled orders and sudden price increases.The political backdrop is not abstract climate policy. It is a live consumer-protection and fuel-price problem.
Same-day reporting, 21 April 2026The reported grant uplift explicitly names oil and LPG properties.That points to a targeted attempt to reduce exposure for off-grid homes rather than a blanket BUS increase for everyone.

The March government announcement focused heavily on heating oil. Today’s reporting broadens the practical support story to include LPG-heated properties too. That is commercially important because many off-grid homes sit outside the simple on-gas-grid retrofit pattern and often need cleaner evidence before a quote can be trusted.

What is publicly available online right now

  • GOV.UK confirms the BUS still applies to fossil fuel replacements including oil and LPG in England and Wales.
  • The GOV.UK approved grant values notice updated 9 June 2026 says the set three grant categories and values are effective from 21 July 2026.
  • Ofgem Installer Guidance V5 applies to applications properly made on or after 28 April 2026.
  • The House of Commons Library briefing published 13 May 2026 describes BUS as up to £7,500, or £9,000 for heating oil and LPG users.
  • DESNZ has published a BUS budget increase notice dated 1 April 2026, but that notice confirms a bigger budget rather than a new public-facing grant table.
  • GOV.UK published a separate heating oil support story on 16 March 2026 confirming over £50 million of support for households facing heating oil price spikes.
  • Same-day PA reporting carried by AOL and The Independent says ministers are increasing the BUS grant from £7,500 to £9,000 for oil and LPG properties.
  • Energy Saving Trust describes the temporary oil and LPG uplift window as 21 July 2026 to 31 March 2027.
  • MCS says DESNZ has recognised the redeveloped MCS Installer Scheme as a Code of Practice for BUS, so installers operating under the redeveloped scheme no longer need separate RECC or HIES membership for BUS installations.

The position on 12 June 2026 is clearer than it was in May: the £9,000 oil and LPG route now appears in GOV.UK’s approved values notice with a 21 July 2026 effective date.

What the current public sources show

SourcePosition as checked on 12 June 2026Implication
GOV.UK BUS overviewThe scheme overview says BUS can be used to replace fossil fuel systems including oil and LPG in England and Wales.The target property types already sit inside the main scheme.
GOV.UK approved grant values noticeThe approved-values notice updated 9 June 2026 lists £9,000 for eligible off-gas grid LPG or oil replacements using air-to-water or ground source heat pumps, effective from 21 July 2026.This is now the cleanest GOV.UK table to check before relying on the new grant value.
House of Commons Library briefingThe briefing published 13 May 2026 describes BUS as up to £7,500, or £9,000 for heating oil and LPG users.This is the strongest public reference for the oil/LPG uplift found in this check.
Ofgem Installer Guidance V5V5 applies to applications properly made on or after 28 April 2026.Application date and guidance version still matter.
Energy Saving Trust BUS guideThe guide says eligible off-gas grid properties can get £9,000 for air source or ground source heat pumps from 21 July 2026 to 31 March 2027.This gives installers and homeowners a plain-English public window for planning conversations.
MCS update to certified installersDESNZ has formally recognised the redeveloped MCS Installer Scheme as a Code of Practice for BUS. Installers operating under the redeveloped scheme no longer need separate RECC or HIES consumer code membership for BUS work.This removes a separate membership requirement for transitioned installers, but not for installers still waiting to move over.
DESNZ budget noticeA formal notice published on 1 April 2026 says the BUS budget for 2026 to 2027 will be £400 million.There is already a policy and budget basis for a larger or more targeted support offer.

The start date is now published, but installers still need to check the application or voucher date before putting the deduction in writing.

Boiler Upgrade Scheme eligibility for oil and LPG homes

The £9,000 number is only useful if the property actually qualifies. Eligibility still depends on the property type, the existing heating fuel, the proposed heat pump, and the scheme wording on the application date.

Based on the public wording checked on 12 June 2026, the cautious way to handle eligibility is:

  • treat the £9,000 figure as a targeted uplift for eligible off-gas grid oil and LPG-heated properties, not a blanket new amount for every BUS application;
  • check that the property still fits the live BUS route in England and Wales on the application date you are using;
  • confirm that the quote wording matches the current GOV.UK and Ofgem wording, not just older headline reporting;
  • separate the question is this property BUS-eligible? from the question which grant amount is live on the application or voucher date?

If you want the wider scheme context behind those checks, use the April 2026 BUS changes guide alongside this article.

What the extra £1,500 could mean on real jobs

Energy Saving Trust currently says the typical cost of installing an air source heat pump is around £11,000. If the full £9,000 applies to an eligible oil or LPG property, that simple headline comparison would leave a notional £2,000 still to fund before any wider system changes. That is only a rough illustration, not a quote.

Real jobs vary because the final spend is often moved by:

  • radiator upgrades and pipework changes
  • hot water cylinder requirements
  • electrical upgrades or supply constraints
  • fabric issues that alter heat loss assumptions
  • access, base, and outdoor-unit constraints

The grant does not make every job cheap. It narrows the gap between typical ASHP costs and available support for the most fuel-exposed off-grid homes.

What installers and homeowners should do next

  1. Check the property is actually replacing a qualifying fossil fuel system, and record whether that system is oil or LPG.
  2. Ask the MCS installer which BUS grant value will be used on the quote and whether the application timing aligns with the 21 July 2026 effective date.
  3. Check whether the installer has transitioned to the redeveloped MCS Installer Scheme before assuming separate RECC or HIES membership is no longer needed.
  4. Do not assume every rural or off-grid job automatically qualifies for £9,000; the higher value is tied to specific fuel and technology categories.
  5. If the project is likely to be submitted on or after 28 April 2026, check the newest guidance as well as the headline news coverage.
  6. Keep the survey evidence clean: current heating type, emitters, cylinder, electrics, access, and external unit constraints should all be captured before the quote goes out.

Consumer code update for installers

There is a separate installer-compliance update to watch. MCS says DESNZ has now recognised the redeveloped MCS Installer Scheme, and the consumer protection it provides, as a Code of Practice for BUS.

That means installers operating under the redeveloped MCS scheme are no longer required to hold separate consumer code membership with RECC or HIES when delivering BUS installations. This is not a blanket removal for every installer on the old route. Until an installer transitions to the redeveloped scheme, they must keep consumer code membership in line with their certification requirements.

For customers, the application route does not change: the installer still applies for the BUS voucher and the property owner still confirms consent and eligibility when contacted.

The practical Vertex angle

For installers, the risk is quoting from the headline before the site evidence is strong enough. Off-grid properties often have older emitters, patchier historical records, and more variation in electrical and hot-water setup than straightforward on-gas-grid homes.

That is why the survey still matters even when the grant improves. If you are pricing oil or LPG replacements, the report still needs to answer the basic design and viability questions: can the property support the system, what upgrades sit outside the headline unit cost, and is the grant route being presented accurately to the customer?

For the wider grant and eligibility context, read our April 2026 BUS changes guide. For the service route behind the technical report, see the Heat Pump Survey page.

Questions people are asking right now

FAQ

Has GOV.UK updated the approved grant values to £9,000?

Yes. The GOV.UK approved values notice updated 9 June 2026 lists £9,000 for eligible off-gas grid oil or LPG replacements using air-to-water or ground source heat pumps, effective from 21 July 2026.

FAQ

When does the £9,000 BUS grant start?

The published GOV.UK effective date is 21 July 2026. Energy Saving Trust describes the temporary extra funding window as running from 21 July 2026 to 31 March 2027.

FAQ

Does the £9,000 BUS grant apply to all heat pump installs?

No. The £9,000 figure is framed around eligible off-gas grid heating oil and LPG replacements using air-to-water or ground source heat pumps, not every BUS-eligible installation.

FAQ

What should installers check before quoting £9,000?

Check the live GOV.UK and Ofgem wording, confirm the existing heating system is oil or LPG, confirm the property is off-gas grid, and make clear in the quote which grant value depends on application or voucher timing.

FAQ

Do installers still need RECC or HIES for BUS?

If they are operating under the redeveloped MCS Installer Scheme, MCS says separate RECC or HIES membership is no longer required for BUS installations. Until they transition, installers must keep consumer code membership in line with their certification requirements.

Targeted route

The £9,000 figure is targeted, not universal: it applies to eligible off-gas grid oil and LPG replacements using air-to-water or ground source heat pumps.

Official table

The GOV.UK approved values notice updated 9 June 2026 gives the 21 July 2026 effective date and the detailed grant table.

What to watch

The next check is how the live application wording, Ofgem portal process, and quote-stage deduction rules handle the 21 July 2026 start date.

Sources