The Boiler Upgrade Scheme grant has been increased by 20% from £7,500 to £9,000 for homes in England and Wales that use heating oil11:04, 29 Jun 2026Thousands of households will be eligible to receive £9,000 to switch to a heat pump as part of plans to help lower energy bills.‌The Boiler Upgrade Scheme grant has been increased by 20% from £7,500 to £9,000 for homes in England and Wales that use heating oil.‌Leaflets will be dropping onto the doormats of 200,000 eligible homes this week with details on how to claim the extra funding.‌Heat pumps extract energy from the air, the ground or water, then it transfers the heat to where it is needed. They are cheaper to run because they move heat rather than creating it by burning fuel.But they’re expensive to install. The Energy Saving Trust estimates that an air source heat pump costs around £11,000 to install, while ground source heat pumps can cost between £29,000 and £57,000.‌The Government says the extra funding will help rural households make the move from heating oil to a heat pump. Heating oil prices spiked earlier this year after the Middle East conflict significantly disrupted oil supplies.In order to be eligible, you must own the property you’re applying for and you must be replacing a fossil fuel heating system.If you are eligible, you will need to contact a suitable MCS certified installers to get quotes for the work. The installer will then apply for the grant on your behalf.‌Minister for Energy Consumers Martin McCluskey said: "This government is determined to bring down energy bills, but I know the war in the Middle East has hit households on heating oil especially hard."We have already taken action to support these households through confirming over £50 million in support for vulnerable customers on heating oil."Now, the Boiler Upgrade Scheme will help thousands of families across England and Wales switch to clean heat to protect them from volatile fossil fuels."‌Charlotte Lee, CEO, Heat Pump Association UK, said: "The Boiler Upgrade Scheme continues to play a vital role in supporting households to adopt heat pumps, and this £1,500 uplift will make the transition significantly more affordable for the thousands of oil-heated homes."Many of these households have faced considerable price uncertainty in recent months, without the protection of the energy price cap, and this £9,000 grant will help shield families from volatile fossil fuel costs, by using home grown electricity, in the years ahead."Matt Copeland, Head of Policy and Public Affairs at National Energy Action, said: "This is a positive step for households relying on heating oil, who have recently faced the highest and most volatile energy costs.Article continues below"Many families will be expecting to ration their heating in the coming winter, living in homes they cannot afford to keep warm, not through choice but constraint."