UK offers £9,000 heat‑pump grant for off‑grid oil homes

From 21 July 2026 the UK Boiler Upgrade Scheme will provide a £9,000 grant to off‑grid households in England and Wales that replace oil or LPG heating with a heat pump. The grant represents a 20 % increase over the previous amount and is intended to make a heat pump cheaper than installing a new oil boiler.

Oil‑fired homes, about 1.7 million in England and Wales, face volatile fuel prices that are not covered by the Ofgem price cap. Heating oil has fluctuated between 48p and £1.30 per litre in recent years, with a typical home using 1,800‑2,000 L annually. By contrast, a new oil boiler costs £2,500‑£5,500 and receives no grant, while a heat pump installation can be subsidised, offering a more stable, low‑carbon heating option.

The scheme targets rural properties not connected to the gas grid, aiming to reduce reliance on oil and promote low‑carbon heating across the UK.