Heat pump funding & grants in the UK
There isn't one single UK heat pump grant: there are several, and which ones apply to you depends on where you live, your income, and what you're replacing. This guide covers every current route: the Boiler Upgrade Scheme, 0% VAT, Home Energy Scotland, Warm Homes: Local Grant, ECO4, and support in Northern Ireland: what each gives you, who qualifies, and how to apply.
Answer two questions and we'll point you to the schemes worth applying for, in order.
A quick pointer, not a formal eligibility check; confirm details with the scheme directly before applying.
You often can't combine two capital grants for the same measure, but 0% VAT applies alongside any of the others. Always confirm combinability with your installer or scheme adviser before applying.
Boiler Upgrade Scheme (England & Wales)
The government's main heat pump grant, open to any homeowner regardless of income. Paid as an upfront discount off your installer's quote, not claimed back after the fact.
Plus an extra £1,500 (£9,000 total) for ASHP/GSHP on oil or LPG properties with no mains gas connection, between 21 July 2026 and 31 March 2027. One grant per property; hybrid systems don't qualify.
- Eligibility: you own the property (including rentals, second homes and businesses), you're replacing a fossil fuel system, and it's in England or Wales. Your installer must commission the system within 120 days of applying.
- Requirements: an MCS-certified installer and product: this is now a statutory requirement. No EPC is needed as of 28 April 2026 (the old insulation-recommendation rule was scrapped).
- Payment: deducted upfront from your quote by the installer, who applies to Ofgem on your behalf. Not means-tested, doesn't need repaying.
- How to apply: get quotes from MCS-certified installers, confirm eligibility, agree a quote; your installer applies for you.
Funded through to 31 March 2030, with £400 million budgeted for 2026–27. Full detail: eligibility edge cases (self-build, new build), what doesn't qualify (social housing, previously-funded properties), and biomass-specific rules, are in our installation costs guide and the official GOV.UK guidance.
0% VAT on heat pumps (UK-wide)
Separate from any grant, and stackable with one: installing a qualifying heat pump in a UK home currently attracts 0% VAT instead of the usual 20%, covering both the equipment and installation labour.
- What's covered: air, ground and water source heat pumps, plus the installation labour, controls and other qualifying energy-saving materials fitted at the same time.
- Who's eligible: any residential property in the UK: there's no income test and no application. Your installer simply doesn't charge VAT (or charges 0%) on the qualifying elements of the invoice.
- Typical saving: around £1,800–£2,500 on a typical residential ASHP installation, since it applies to the full pre-grant invoice total.
- Timeline: in force since April 2022, currently scheduled to run until 31 March 2027, after which it's due to revert to 5% unless extended again (it has been extended more than once already).
Home Energy Scotland Grant and Loan (Scotland)
Scotland's equivalent to the Boiler Upgrade Scheme, run by Home Energy Scotland on behalf of the Scottish Government: a grant that can be topped up with an optional interest-free loan.
- Funding: up to £7,500 grant for a heat pump (air, ground or water source), plus an optional £7,500 interest-free loan on top, up to £15,000 combined. A £1,500 rural/island uplift applies to both, taking the maximum to £18,000.
- Eligibility: you own and live in the property as your only or main residence, in Scotland. Only heat pumps providing 100% of heating and hot water qualify; hybrids don't. Replacement heat pumps can't get the grant, but can use the loan.
- Requirements: MCS-certified installer and product. No EPC is needed to apply for the heat pump funding itself (only for separate energy-efficiency measures like insulation).
- How to apply: call or email Home Energy Scotland for a free advice session first; you're referred to the online application only after that. Applications are processed in around 10 working days once submitted, and funding offers are valid for 9 months.
- Payment: unlike BUS, funding is claimed back after work is done (with an optional deposit drawdown of up to 60% of material costs upfront) rather than deducted from the quote in advance.
Funding is allocated first-come, first-served and subject to availability, so apply early in the financial year. Full detail: Home Energy Scotland official guidance.
Warm Homes: Local Grant (England, low income)
A fully-funded scheme for lower-income households in England, delivered through local councils. It's a whole-home energy efficiency programme rather than a heat-pump-specific grant; a heat pump is only installed where a survey finds it suitable.
- What it covers: wall, loft and underfloor insulation, air source heat pumps, smart heating controls and solar panels, whatever a home survey recommends. Your council arranges and pays for the work; you pay nothing (though a landlord may need to contribute for a rented property).
- Eligibility: home privately owned (by you or your landlord) with an EPC of D–G, in England. Household income usually £36,000/year or less, though you may still qualify above that if you're in a targeted postcode area or receive certain benefits.
- How to apply: apply online at gov.uk/apply-warm-homes-local-grant; your council should be in touch within 10 working days to arrange a survey. Availability depends on your council having funding allocated, so it isn't guaranteed everywhere.
Runs April 2025 to March 2028. Equivalent support in Wales is arranged through the Welsh Government's Warm Homes Programme, and in Scotland through Home Energy Scotland (above).
ECO4 (England, Wales & Scotland, benefit claimants)
The Energy Company Obligation is funded by energy suppliers rather than general taxation: they're required to fund efficiency upgrades, including heat pumps, for low-income and vulnerable households as part of a "whole-house" retrofit.
- What it covers: can fund a heat pump installation in full as part of a wider package of measures aimed at bringing the home up to around EPC Band C, rather than a fixed voucher amount like BUS.
- Eligibility: broadly, you (or your landlord, with permission) must be claiming a qualifying benefit (Universal Credit, Pension Credit, Income Support, income-based JSA/ESA, Child Benefit or Housing Benefit) and the property needs an EPC of D, E, F or G (E, F or G if you're a private tenant). Social housing tenants in an E, F or G rated property may also qualify.
- How to apply: contact your local council to check if they're participating, or contact a participating energy supplier directly (Ofgem publishes the current list). Be cautious of cold callers claiming to represent the scheme; verify independently before agreeing to anything.
Currently running to 31 December 2026. More tightly targeted than BUS, but can cover a much larger share (or all) of the cost for those who qualify.
Northern Ireland
Northern Ireland isn't covered by the Boiler Upgrade Scheme, and its own Boiler Replacement Scheme has closed with no direct £7,500-style heat pump grant currently in its place. Support is more limited for now:
- 0% VAT applies in Northern Ireland the same as the rest of the UK (see above); no application needed.
- Affordable Warmth Scheme, run by the NI Housing Executive, offers up to £7,500 of heating and insulation work for private owner-occupiers with household income under £23,000.
- NISEP (Northern Ireland Sustainable Energy Programme) offers a limited number of air source heat pump installations as part of heating upgrades for off-gas-grid households, funded by electricity suppliers.
- The Department for the Economy has committed to a NI-specific heat pump grant broadly matching BUS, expected to follow a consultation completed in early 2026. Check nidirect.gov.uk for the latest before assuming any of the above still reflects the current position.
- England or Wales, any income: Boiler Upgrade Scheme + 0% VAT.
- England, lower income: check Warm Homes: Local Grant and ECO4 first; they can fully fund the work rather than just discount it.
- Scotland, any income: Home Energy Scotland Grant and Loan + 0% VAT.
- Wales or Scotland, lower income: ECO4, alongside Home Energy Scotland or the Welsh Government's Warm Homes Programme.
- Northern Ireland: 0% VAT, plus Affordable Warmth or NISEP if you meet their criteria, and watch for the NI-specific grant currently in development.
Related reading
- ASHP installation costs explained: typical totals before and after grant funding
- UK planning permission for heat pumps: permitted development rules, process and costs by nation
- Heat Pump Size Calculator: estimate the kW your home needs before getting quotes
- What is a heat pump?: a plain-English introduction
- Understanding COP & SCOP: how to compare running-cost efficiency between models
Reviewed August 2026 against GOV.UK, Home Energy Scotland and nidirect guidance. This is general information, not financial or professional advice; funding rules, amounts and deadlines change and vary by circumstance, so always confirm current eligibility with the relevant scheme, your council, or an MCS-certified installer before budgeting or buying.