What is the Boiler Upgrade Scheme (BUS) and what is available to those looking to adopt renewables? Find out more about the boiler replacement scheme.
- Are gas boilers going to be banned?
- Why is it important to have an alternative to gas boilers?
- What is the Boiler Upgrade Scheme (BUS)?
- How much can you get through the Boiler Upgrade Scheme?
- Does the Boiler Upgrade Scheme cover air conditioning?
- What is the aim of the BUS scheme?
- How do you apply for the BUS Scheme?
- Boiler Upgrade Scheme Eligibility Criteria:
- Is my home suitable for a heat pump?
First things first: gas boilers are not being banned from existing UK homes.
You can continue using your current gas boiler, repair it when something goes wrong and replace it where suitable. Nobody is going to arrive at your home and force you to remove a working boiler.
What is changing is the direction of government policy. The UK has a legally binding target to reach net zero greenhouse gas emissions by 2050, and heating buildings remains a major source of emissions. The government’s long-term aim is therefore to reduce reliance on fossil-fuel heating and make lower-carbon alternatives, particularly heat pumps, more widely available.
One of the main incentives is the Boiler Upgrade Scheme, commonly shortened to BUS.
Despite some misleading headlines, it is not the “Boiler Ban Upgrade Scheme”. It is a grant programme that helps eligible property owners in England and Wales cover part of the cost of installing a heat pump or biomass boiler.
The scheme has also changed considerably since it launched. Grants of up to £7,500 are now available for standard heat-pump installations, air-to-air heat pumps have been added, and some qualifying off-gas-grid properties will be eligible for an increased £9,000 heat-pump grant from 21 July 2026. The scheme has also been extended to 2030.
Thinking about replacing your boiler with a heat pump? Get a personalised heat-pump quote from Heatable and find out whether your property could qualify for the Boiler Upgrade Scheme.
🔑 Key takeaways:
Gas boilers are not being banned from existing homes.
You will not be forced to remove a working gas boiler.
New homes built to the Future Homes Standard will need low-carbon heating, and gas boilers will not meet the required performance standard.
The Boiler Upgrade Scheme offers grants towards eligible heat pumps and biomass boilers in England and Wales.
Standard grants include £7,500 for air-to-water and ground-source heat pumps.
Air-to-air heat pumps are now eligible for a £2,500 grant.
Eligible oil- and LPG-heated off-gas-grid properties can receive £9,000 towards certain heat pumps from 21 July 2026.
Your MCS-certified installer applies for the grant on your behalf.
The grant is deducted from the price you pay rather than transferred directly to you.
Are gas boilers going to be banned?
There is currently no blanket ban on gas boilers in existing homes.
The government’s earlier Heat and Buildings Strategy set an ambition to phase out the installation of new and replacement natural-gas boilers from 2035, but it also made clear that homeowners would not be forced to remove their existing boilers.
That means:
You can continue using your existing gas boiler.
You can have it serviced and repaired.
A boiler will not become illegal merely because it runs on gas.
There is no compulsory national programme requiring households to replace boilers with heat pumps.
The position is different for newly constructed homes.
The Future Homes and Buildings Standards were confirmed in 2026 and require new homes to be built with low-carbon heating and higher levels of energy efficiency. Gas boilers will not meet the required performance standard, so new developments will generally use technologies such as heat pumps or heat networks instead.
Calling this a universal “gas boiler ban” is therefore misleading. The new-build rules affect how future properties are constructed. They do not prohibit gas boilers already installed in existing homes.
Why is it important to have an alternative to gas boilers?
One of the major causes of global warming is the production of greenhouse gases through the burning of fossil fuels, such as natural gas.
These gases cannot escape the atmosphere and instead remain trapped, causing the earth’s temperature to rise.
In response to this global climate emergency, in 2016, at the Accord on Climate Change in Paris, the UK government, together with the world’s largest economies agreed to tackle global warming by becoming carbon neutral by 2050.
As a result, traditional heating methods, which currently account for one-third of UK carbon emissions, are at the heart of the government's low-carbon agenda and change is inevitable.
Low-carbon heating methods are essential to achieving the targets; this includes technologies such as heat pumps, solar, biomass and the adoption of hydrogen boilers.
Residential combi boilers have already been the target of substantial legislation, including a ban on non-condensing boilers, rendering all new boilers at least 90% efficient, and a complete ban on gas boilers in all new build properties from 2025.
However, the fact is that the majority of UK households use gas boilers to heat their homes and the expense and practicality of replacing them all with heat pumps and solar are considered unachievable by many.
Your current boiler broke? Read our boiler replacement guide.
What is the Boiler Upgrade Scheme (BUS)?
The Boiler Upgrade Scheme is a government-funded grant programme administered by Ofgem.
It provides an upfront contribution towards the cost of replacing eligible fossil-fuel heating systems with lower-carbon alternatives.
The scheme is available for qualifying domestic and small non-domestic properties in England and Wales. It does not operate in Scotland or Northern Ireland, where separate support arrangements may apply.
BUS is an installer-led scheme. This means the homeowner does not normally submit the main application directly to Ofgem.
Instead, an MCS-certified installer:
1. Assesses the property and recommends a suitable system.
2. Provides a quotation showing the grant.
3. Applies to Ofgem on the property owner’s behalf.
4. Installs and commissions the heating system.
5. Redeems the grant once the installation is complete.
The grant is paid to the installer and deducted from the amount charged to the customer.
How much can you get through the Boiler Upgrade Scheme?
The grant depends on the heating technology and, in some cases, the system being replaced.
Standard Boiler Upgrade Scheme grants
Heating system | Standrad grant |
Air-to-water heat pump | £7,500 |
Ground-source heat pump | £7,500 |
Air-to-air heat pump | £2,500 |
Biomass boiler | £5,000 |
Only one BUS grant is normally available per property. Hybrid systems combining a fossil-fuel boiler with a heat pump are not eligible.
Increased £9,000 heat-pump grant
From 21 July 2026, certain off-gas-grid properties replacing oil or LPG heating will qualify for a grant of up to £9,000 towards an eligible heat pump.
This increased rate is aimed primarily at rural households and small businesses that are particularly exposed to oil and LPG prices.
The precise amount and eligibility depend on the existing heating system and the type of heat pump being installed.
Your installer should confirm the correct grant before you agree to proceed.
Does the Boiler Upgrade Scheme cover air conditioning?
Potentially, yes.
The scheme now includes a £2,500 grant for eligible air-to-air heat pumps.
Air-to-air heat pumps transfer heat between the outdoor air and indoor rooms. Many systems can both:
Heat the property during colder weather
Cool it during warmer weather
They are therefore often marketed as air-conditioning systems.
However, not every air-conditioning installation qualifies. The system must meet the Boiler Upgrade Scheme’s technical rules and be installed as an eligible heating system rather than simply as an occasional cooling appliance.
Air-to-air heat pumps are only eligible in residential properties, and the installation must be carried out by an appropriately MCS-certified installer.
Want heating and cooling from the same system? Speak to Heatable about an air-to-air heat-pump installation and whether your property could qualify for the £2,500 BUS grant.
What is the aim of the BUS scheme?
The BUS scheme is aimed to help the government achieve its goals of installing low-carbon heat technologies in up to 90,000 homes and buildings across England and Wales.
In addition, the scheme is predicted to help create and support set to support up to 240,000 jobs across the UK by 2035.
How do you apply for the BUS Scheme?
If you are interested in applying for the Boiler Upgrade Scheme, the application process is broken down into two distinct stages:
Before installation:
1. The first stage is to locate an MCS-accredited heat pump installer and instruct them to apply for the BUS scheme.
2. The installer will then apply for the grant and go through all required eligibility checks.
3. Ofgem will then contact the homeowner to confirm their consent.
4. Ofgem will assess the application and once satisfied and have received consent from the homeowner, the grant will be issued to the installer.
After installation:
1. The installer will complete the installation.
2. The installer will provide evidence of the installation to redeem the grant amount. Ofgem will assess the redemption voucher.
3. Ofgem will then pay the grant to the installer. Ofgem intends to make a payment to the installer for the amount associated with the redeemed voucher within a week of notification that the application has been successful.
Boiler Upgrade Scheme Eligibility Criteria:
To be approved for the Boiler Upgrade Scheme (BUS), you must meet certain criteria, which include the following:
Installers must be MCS accredited.
Air-source heat pumps, ground-source heat pumps or biomass boilers must replace a fossil-fuelled system.
There is a 45 kwh total capacity limit.
Heat pumps must have a minimum seasonal coefficient of performance of 2.8.
Biomass boilers must have an emissions certificate.
Biomass boilers can only be installed in rural areas and in properties not fuelled by mains gas.
Heat pumps and biomass boilers must meet approved standards outlined by the secretary of state.
Domestic and non-domestic buildings are eligible including custom builds.
The EPC must be valid (no longer than 10 years old) and have no recommendations to install cavity wall insulation unless exempt.
There are a few scenarios where the EPC criteria don’t apply, such as where there are exemptions. This includes the following:
Applications may be made for properties with loft or cavity wall insulation recommendations, as long as the insulation is installed before the voucher is redeemed.
Custom-built properties won’t be required to provide a valid EPC since they are subject to the latest building regulations concerning building fabric efficiency.
Does the BUS cover air con units?
Is my home suitable for a heat pump?
Although a heat pump is indeed a low-carbon heating option, does it make sense to install one in your home? Will they provide the level of comfort and reliability you are looking for?
There are some key considerations before deciding as to whether installing a heat pump is a viable option:
1. How well is your home insulated?
Heat pumps have a lower flow temperature than a gas boiler and work more efficiently at generating heat at a lower temperature, therefore, a home that is well insulated is required.
2. What heating system do you have?
Heat pumps work best with underfloor heating systems and not standard radiators, however, if you are prepared to replace them with low-flow temperature radiators, such as oversized radiators it can still work well.
3. What heating system are you replacing?
The upfront costs of installing a heat pump can be astronomically high, even when factoring in a government grant. Even though there is little doubt they are better for the environment, the running costs can be more than a gas boiler, so it often only makes sense if you are replacing a more expensive system e.g., electric heating.
4. Do you have enough space for a heat pump?
It’s no secret that a ground-source heat pump needs a significant amount of space around your home to be installed, but an air-source heat pump also needs some space too.
The unit needs to be fitted to an external wall and be at least one metre from the boundary of the house.
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