The £9,000 heat pump grant for oil and LPG homes

The Boiler Upgrade Scheme (BUS) grant has been increased to £9,000 for homes that currently run on oil or LPG. The higher amount takes effect on 21 July 2026 and is expected to run until the end of March 2027. For everyone else, the standard grant towards an air source or ground source heat pump stays at £7,500. This is the most generous heat pump support available in England and Wales, and it is aimed squarely at the off-grid homes that have been hit hardest by rising fuel prices.

If you heat your home with an oil or LPG boiler, particularly in the rural areas around Leeds and across North Yorkshire, this is the change worth understanding before you book your next oil delivery.

What has actually changed

Until now the Boiler Upgrade Scheme paid a flat £7,500 towards a heat pump, whatever you were replacing. The update keeps that £7,500 for mains-gas homes but adds a £1,500 uplift, taking the grant to £9,000, specifically for properties heated by oil or LPG.

• Standard grant: £7,500 towards an air source or ground source heat pump.
• Oil and LPG homes: £9,000 from 21 July 2026 to the end of March 2027.

The grant is not a loan and you do not pay it back. Your MCS-certified installer claims it and takes it straight off your invoice, so the price you are quoted is already the net figure after the grant.

Why oil and LPG homes get more

Homes off the mains gas grid have had a hard few years. Heating oil and LPG prices rose sharply through the recent energy crisis, and unlike mains gas they are not protected by the energy price cap. The government has said the uplift is designed to help the households and small businesses, particularly in rural areas, that have been most exposed to those price swings, and to give them more certainty over their energy bills by moving them onto electric heating.

There is a practical reason too. The Boiler Upgrade Scheme had a large underspend, and directing the extra money at oil and LPG homes targets the properties where a heat pump makes the biggest difference to running costs.

Who qualifies for the £9,000

The eligibility rules for the uplift are straightforward:

• Your home is currently heated by oil or LPG (off the mains gas grid).
• You own the property, or you are a private landlord, in England or Wales.
• It is an existing building, not a new build.
• You are replacing the fossil fuel system with a standalone air source or ground source heat pump, not a hybrid that keeps the old boiler.
• The work is carried out by an MCS-certified installer.

One rule that catches people out was removed in April 2026. You no longer need a valid EPC, and the old loft and cavity insulation requirement has gone too. That has opened the scheme up to a lot of older rural homes that previously could not claim.

What it means for a Leeds home

Leeds itself is on the mains gas grid, so most city homes will claim the standard £7,500. The £9,000 really matters in the belt of villages and rural properties around the city and across North Yorkshire, where mains gas never arrived and oil or LPG is the only option. Think of the stone farmhouses and converted barns around Otley, Harrogate, Skipton and the wider Dales, where an oil tank in the garden is still the norm.

These are often larger, higher-value homes with the space for a heat pump and a real incentive to escape volatile oil prices. For a household replacing an ageing oil boiler, a £9,000 grant turns a heat pump from a long payback into a genuinely sensible upgrade, and it removes the yearly worry of filling a tank at whatever the market price happens to be.

We cover all of this catchment from our Bradford base, including Leeds and the surrounding towns, with the grant applied for you.

Timing matters: get the dates right

The uplift is time-limited. The £9,000 applies to installations completed between 21 July 2026 and the end of March 2027. The date that counts is when the heat pump is installed and commissioned, not when you enquire. If you are weighing it up, it is worth starting the conversation early so a survey and install slot can be booked inside the window. Government schemes are reviewed regularly, so we always confirm the live figure on the day of your quote.

How BASI handles the grant

We are MCS-certified, which is the accreditation your installer must hold for any Boiler Upgrade Scheme claim to be valid. Here is how it works with us:

1. A real survey first. One of our heating engineers, not a salesman, assesses whether a heat pump genuinely suits your home. If an oil or gas boiler is the better fit, we will tell you and quote that instead.
2. Grant applied before you pay. We submit the Ofgem application on your behalf and deduct the £9,000 (or £7,500) from your invoice, so you see the net price and never chase money back.
3. Fixed price, no surprises. The quote after the survey is the price. Gas Safe registered (number 623525), Worcester Bosch and Vaillant accredited, and over 30 years serving West and North Yorkshire.

For the full detail on heat pumps, running costs and suitability, see our air source heat pump installation page, or read how the wider scheme works on our heat pump and boiler grants page.

Find out what you could claim

If your home runs on oil or LPG and you want to know what a heat pump would cost after the £9,000 grant, get a fixed-price quote or call 0800 980 6018 to talk it through with an engineer. We will confirm the live grant figure, check your eligibility, and handle the Ofgem paperwork for you.

The figures here were checked in June 2026. Government scheme amounts and dates change, so we reconfirm the current grant before any quote.