UK Boiler Upgrade Scheme 2026. £2,500 Grant for Air to Air Heat Pumps
The UK Boiler Upgrade Scheme has changed how homeowners approach heating. As we move into 2026, more people are asking the same question. Can you really get £2,500 from the government to replace a gas boiler with an air-to-air heat pump?
The short answer is yes, but only if you understand how the scheme works and what the rules actually say. This guide explains everything clearly, without confusion or marketing spin.
What is the Boiler Upgrade Scheme
The Boiler Upgrade Scheme (Bus) is a UK government incentive designed to reduce reliance on fossil fuel heating. It supports households in England and Wales who replace gas, oil or LPG boilers with low carbon heating systems.
Instead of paying homeowners directly, the grant is applied by an MCS certified installer and deducted from the installation cost. The scheme is managed through Ofgem and backed by official government funding.
What Changed in the Boiler Upgrade Scheme for 2026
Originally, the scheme focused only on air to water heat pumps and biomass boilers. In late 2025, eligibility expanded to include air to air heat pumps, with a lower grant value of £2,500.
The reason is simple. Air to air systems cost less to install, require no radiators or pipework, and are often better suited to flats, extensions and open plan homes.
The £7,500 grant still applies only to air to water heat pumps.
What is an Air-to-Air Heat Pump
An air to air heat pump extracts heat from outside air and delivers it into the home using indoor fan units. These systems are commonly known as modern air conditioning systems, but they are designed to heat as well as cool.
How Air to Air Heat Pumps Work in UK Homes
In winter, the system pulls heat from the outdoor air and distributes warm air into living spaces. In summer, it reverses the process to provide cooling. This makes it one of the few heating systems that solves overheating as well as winter heating.
Air to air systems do not produce hot water. This is an important consideration for eligibility and household suitability.
Is There Really a £2,500 Grant for Air to Air Heat Pumps
Yes. Under the Boiler Upgrade Scheme UK, homeowners can receive £2,500 when an air to air heat pump replaces an existing fossil fuel heating system.
The key word is replaces. The system must become the primary heating source for the property.
The installer applies for the grant on your behalf, and the amount is deducted from your final invoice.
Can You Replace a Gas Boiler With an Air to Air Heat Pump
You can, but there are strict conditions. You have to remove the boiler in order the eligible for this scheme.
Why Boiler Removal Is Mandatory
To qualify for the grant, the gas boiler must be fully removed or permanently decommissioned. You cannot keep a boiler as a backup system.
This rule exists because the scheme is designed to eliminate fossil fuel heating, not supplement it. Many rejected applications fail for this reason.
Who Is Eligible for the £2,500 Air to Air Grant
The boiler upgrade scheme eligibility for the £2,500 air to air heat pump grant are slightly different from the main Boiler Upgrade Scheme rules. To qualify for the £2,500 reduction, you will generally need to meet all of the following criteria:
- Location: Your property must be located in England or Wales. Homes in Scotland and Northern Ireland are not covered, as they operate under separate devolved energy schemes.
- Ownership: You must own the property where the system is being installed. This includes owner occupiers as well as private landlords. Tenants are not eligible to apply for the grant.
- EPC Rating: Your property must have a valid Energy Performance Certificate (EPC). The EPC must show no outstanding recommendations for loft insulation or cavity wall insulation at the time of application.
- Existing Heating System: The air to air heat pump must replace an existing fossil fuel heating system, such as a gas boiler, oil boiler, or LPG system. The existing boiler must be fully removed or permanently decommissioned.
- System Type and Installation: The system must be installed by an MCS-certified installer and used as the primary heating system for the property. The installer applies for the grant on your behalf, and the £2,500 is deducted from the final installation cost.
Who Is Not Eligible Under the BUS Scheme
Not every household will qualify for the £2,500 air to air heat pump grant. You are unlikely to be eligible if any of the following apply:
- Location Outside England or Wales: Properties located in Scotland or Northern Ireland are not covered under the Boiler Upgrade Scheme. These regions operate their own separate energy and heating grant programmes.
- Tenants and Non Owners: Tenants cannot apply for the grant themselves. Only property owners, including private landlords, are eligible to make an application through an approved installer.
- Keeping a Gas Boiler or Fossil Fuel System: You will not qualify if you intend to keep an existing gas, oil, or LPG boiler as a backup or secondary heating system. The grant requires the fossil fuel system to be fully removed or permanently decommissioned.
- Cooling Only Installations: Systems installed solely for air conditioning or cooling do not qualify. The air to air heat pump must be used as the primary heating system for the property.
- Poor EPC or Outstanding Insulation Requirements: Properties with an EPC that still recommends loft insulation or cavity wall insulation will not be approved until these measures are installed and the EPC is updated.
- Non MCS Certified Installations: Installations carried out by installers who are not MCS certified are not eligible. The installer must also apply for the grant on your behalf.
- New Build Properties: Most new build homes are excluded, particularly where the property has never had a fossil fuel heating system installed.
Being clear on this avoids wasted time and rejected applications.
Air to Air Heat Pump Costs After the Grant
Air to air heat pumps are typically more affordable than other low carbon heating systems because they do not require radiators, pipework, or a hot water cylinder. This reduces both labour time and installation complexity.
When the £2,500 Boiler Upgrade Scheme grant is applied, the upfront cost can reduce significantly, particularly for smaller installations. In some cases, the grant can cover most of the installation cost.
Below is an example of how pricing can look for different property setups. These figures are indicative and will vary depending on layout, electrical capacity, and system design
| Installation Type | Suitable For | Typical Installation Cost | BUS Grant Applied | Estimated Homeowner Cost |
| Single room system (around 2.5kW) | Bedrooms, home offices, loft rooms | £2,000 to £3,000 | Up to £2,500 | £0 to £500* |
| Two room multi split system | Small flats or two key rooms | £3,500 to £4,500 | £2,500 | £1,000 to £2,000 |
| Multi room system (up to four indoor units) | Whole home heating | £6,000 and above | £2,500 | £3,500 and above |
Air to Air vs Air to Water Heat Pumps
Air to air systems are cheaper, faster to install and ideal where hot water is handled separately.
Air to water systems cost more, require radiators or underfloor heating, and qualify for the £7,500 grant.
There is no better option. It depends on how your home is built and how you use energy.
Engineer Insight
“Our customers often focus on the cooling side first, which is understandable. But the reason this grant exists is the heating efficiency. These systems deliver reliable warmth through winter while using far less energy than traditional boilers. The added cooling is simply a bonus homeowners appreciate once summer arrives.”
Senior Installation Engineer
Peter Kewn
Why Many UK Homes Are Choosing Air to Air in 2026
UK summers are getting hotter. Many homes struggle with overheating, especially bedrooms and loft conversions.
Air to air heat pumps offer:
- Lower installation costs
- Fast room by room heating
- Cooling in summer
- No pipework or radiators
- Lower maintenance
For many households, it is the most practical low carbon option.
How to Apply for the Boiler Upgrade Scheme
Homeowners do not apply directly. The process works like this:
- Choose an MCS-certified installer
- Confirm eligibility and property suitability
- Installer applies for the grant
- Grant is deducted from your invoice
You can verify scheme details on GOV.UK.
Boiler Upgrade Scheme Application Deadline
The Boiler Upgrade Scheme Timeline is a long-term government incentive, but it is not open ended. Applications must be submitted within the official funding window.
- Scheme opening date
23 May 2022 at 12:01am (midnight) - Scheme closing date
31 December 2027 at 11:59pm (midnight)
Applications are submitted by the installer, and funding is subject to availability. Early assessment helps avoid delays or missed eligibility.
How Aquila Plumbing Can Help
Aquila Plumbing works with homeowners and landlords across heating upgrades, boiler replacements, and modern low carbon heating systemsbook a heating assessment. We take a practical, honest approach, focusing on solutions that suit the property rather than pushing one size fits all systems.
We are MCS certified, which means any qualifying heat pump installation is completed to nationally recognised standards and can be supported under the Boiler Upgrade Scheme. From initial assessment to final installation, our team ensures the system is correctly designed, compliant, and efficient for long term use.
If you are considering replacing a gas boiler or exploring air to air heat pumps, a professional site survey helps confirm eligibility, suitability, and realistic costs before any work begins.
FAQs
How does the Boiler Upgrade Scheme work?
The Boiler Upgrade Scheme provides a government funded discount when you replace a fossil fuel heating system with a low carbon alternative. The grant is claimed by an MCS certified installer and deducted from your installation cost.
Will I have to replace my gas boiler after 2025?
There is no requirement to remove an existing gas boiler after 2025. However, government policy is moving towards low carbon heating, and incentives are available if you choose to upgrade voluntarily.
How much is the Boiler Upgrade Scheme in the UK?
The scheme currently offers up to £7,500 for air to water heat pumps and £2,500 for air to air heat pumps. The amount depends on the type of system being installed.
What types of boilers qualify for upgrades?
Gas, oil, and LPG boilers can be replaced under the scheme, provided the new system is a qualifying low carbon heat pump and the existing boiler is fully removed.