Grant support for houses using heating oil set to increase by 20% on July 21. The policy first announced in the wake of the US and Israel war with Iran comes as inflation-adjusted prices for heat pumps fall against 2023 pricing.
Households in England and Wales that switch from heating oil to a heat pump will be eligible for a GBP 9,000 ($12,000) grant from July 21, a 20% increase on the GBP 7,500 grant currently available.
The increase in funding available through the UK government’s Boiler Upgrade Scheme (BUS) was first announced as a targeted measure for mostly rural households using heating oil systems, in a bid to mitigate exposure to volatile fossil fuel markets. Unlike households with gas boiler heating systems, which comprise the majority of UK homes, consumers using heating oil are not protected by energy regulator Ofgem’s price cap, leaving rural households more exposed to market volatility.
BUS grants have been available for households in England and Wales since May 2022, initially offering a GBP 5,000 grant toward the cost of an air-to-water heat pump installation, and a GBP 6,000 grant for ground-sourced heat pump installations, before increasing to GBP 7,500 for both technologies in October 2023.
