Grant update

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

Updated May 2026: what the House of Commons Library says about the £9,000 oil and LPG route, what the GOV.UK approved values notice still lists, and what installers should check before quoting.

Updated check. The Commons Library describes BUS as up to £7,500, or £9,000 for heating oil and LPG users. The GOV.UK approved values notice updated 5 May 2026 still lists the approved categories as £7,500, £2,500, £7,500, and £5,000. · 6 min read

Published: 21 April 2026 Last reviewed: 26 May 2026

Updated 26 May 2026: the House of Commons Library briefing now describes BUS as providing upfront grants of up to £7,500, or £9,000 for heating oil and LPG users. The GOV.UK approved grant values notice updated 5 May 2026 still lists the approved grant values as £7,500 air-to-water, £2,500 air-to-air, £7,500 ground source, and £5,000 biomass.

This page now separates three things: the £9,000 oil and LPG position recorded by the Commons Library, the GOV.UK approved-values notice currently visible online, and the practical checks installers should make before using the £9,000 figure in 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.

That matters because the live BUS framework already covers properties replacing fossil fuel systems such as oil, gas, electric or LPG. What today’s announcement appears to do is move away from a flat heat-pump grant for every eligible fossil-fuel property and introduce a higher support level for a specific off-grid group.

May 2026 update

There is now a stronger public reference for the £9,000 oil and LPG figure. The House of Commons Library briefing published on 13 May 2026 lists the Boiler Upgrade Scheme as providing upfront grants of up to £7,500, or £9,000 for heating oil and LPG users.

However, the official GOV.UK approved-values notice updated on 5 May 2026 still shows the approved grant categories and values as:

£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 is: the £9,000 oil and LPG route is now recorded by the Commons Library, but installers should still check the live GOV.UK and Ofgem wording before quoting the deduction.

When does the £9,000 grant start?

Some market reporting and installer pages refer to a July 2026 implementation window. Treat that as timing to verify, not something to hide in the small print. The application date, live Ofgem guidance, and live GOV.UK grant wording still matter.

The important point is simple: do not promise a customer a deduction your business has not confirmed through the live application route.

That timing question matters in its own right because installers and homeowners need to know whether the £9,000 figure is live before they quote it, budget around it, or promise it to a customer.

Why oil and LPG homes are being targeted

Source signal	What it says	Why it matters
HM Treasury / GOV.UK, 16 March 2026	Government 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 2026	The 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 2026	The 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 5 May 2026 lists £7,500 for air-to-water, £2,500 for air-to-air, £7,500 for ground source, and £5,000 for biomass.
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.
Market sources still refer to a July 2026 window, so timing should be checked against the live application route.

The position on 26 May 2026 is clearer than it was in April, but still needs careful wording: the £9,000 oil and LPG route is now recorded by the Commons Library, while GOV.UK’s approved values notice still lists the standard approved grant categories.

What the current public sources show

Source	Position as checked on 26 May 2026	Implication
GOV.UK BUS overview	The 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 notice	The approved-values notice updated 5 May 2026 lists £7,500 air-to-water, £2,500 air-to-air, £7,500 ground source, and £5,000 biomass.	This is the cleanest GOV.UK table to check before relying on a grant value.
House of Commons Library briefing	The 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 V5	V5 applies to applications properly made on or after 28 April 2026.	Application date and guidance version still matter.
DESNZ budget notice	A 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 short version is this: the policy has moved on from the first same-day reports, but installers still need to verify the live grant deduction and applicable application date before promising a number in writing.

Boiler Upgrade Scheme eligibility for oil and LPG homes

People are not only asking about the £9,000 number. They are also asking the broader question: who is actually eligible under the Boiler Upgrade Scheme right now? That matters because the answer depends on both the property type and the live scheme wording on the application date.

Based on the public wording checked on 26 May 2026, the cautious way to handle eligibility is:

treat the reported £9,000 figure as a targeted uplift for 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 the headline reporting;
separate the question is this property BUS-eligible? from the question which grant amount is live on the application date?

If you want the wider scheme context behind those checks, use the BUS grants overview page and 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 important commercial point is not that every eligible home suddenly becomes a cheap install. It is that the grant support for the most fuel-exposed off-grid homes appears to be moving closer to the typical installed cost of an air source system.

What installers and homeowners should do next

Check the property is actually replacing a qualifying fossil fuel system, and record whether that system is oil or LPG.
Ask the MCS installer which BUS grant value will be used on the quote and from what application date that value becomes valid.
Do not assume every rural or off-grid job automatically qualifies for £9,000 until the live GOV.UK or Ofgem wording catches up.
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.
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.

The practical Vertex angle

For installers, the commercial risk in a fast-moving grant story is not just being late to mention the higher number. It is quoting off a headline without enough site evidence behind it. 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 scheme changes arriving around the same period, read our April 2026 BUS changes guide. For the broader grant and eligibility context, use the BUS grants overview. 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?

The GOV.UK approved values notice updated 5 May 2026 lists £7,500 for air-to-water, £2,500 for air-to-air, £7,500 for ground source, and £5,000 for biomass.

FAQ

Where does the £9,000 BUS figure appear?

The House of Commons Library briefing published on 13 May 2026 describes BUS as up to £7,500, or £9,000 for heating oil and LPG users.

FAQ

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

No. The £9,000 figure is framed around heating oil and LPG users, not as a blanket increase for 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, and make clear in the quote which grant value depends on application timing and scheme wording.

Targeted route

The £9,000 figure is targeted, not universal: it applies to heating oil and LPG users rather than every BUS-eligible fossil fuel replacement.

Official table

The GOV.UK approved values notice updated 5 May 2026 still lists the standard approved grant categories and values.

What to watch

The next check is whether the live application wording, Ofgem portal process, and quote-stage deduction rules align cleanly with the £9,000 oil and LPG route.