Skip to content

Heat with oil? The grant just became £9,000

Photo of Danny Whitfield, heating and energy writer

Written by Danny Whitfield

Heating and energy writer · Last updated 13 July 2026

Checked against GOV.UK: 10 July 2026 · Last verified: 13 July 2026

From 21 July 2026, homes heated by oil or LPG get £9,000 off a heat pump through the Boiler Upgrade Scheme, £1,500 more than everyone else. The uplift runs until 31 March 2027, applies in England and Wales, and has no income or benefits test.

This is the largest single heating grant available to ordinary households, and it is new, so most oil-heated homes have not heard of it. If your boiler is limping towards its last winter, the timing has never been better than this window.

The key facts

£9,000 oil and LPG heat pump grant key facts
Amount£9,000 towards an air source or ground source heat pump
WhoOwner-occupiers and landlords whose property currently heats with oil or LPG
WhereEngland and Wales
Window21 July 2026 to 31 March 2027
Income testNone
Who appliesYour MCS-certified installer. You never fill in a form.

Checked against GOV.UK: 10 July 2026

The maths for a typical oil-heated home

Oil-heated homes skew larger and older, so budget towards the upper end of installation costs: £11,000 to £14,000 for a properly sized air source heat pump. Take off £9,000 and you are paying £2,000 to £5,000. Set that against what oil costs you now: a typical rural household burns 1,500 to 2,000 litres a year, which at recent prices is £950 to £1,400 annually, plus boiler servicing, plus the joy of watching the tank gauge in January.

A heat pump replaces the tank, the deliveries and the price swings with a single electricity bill, and it pairs well with off-peak tariffs. Full running-cost detail is in our heat pump cost guide.

Air source heat pump installed beside a 1930s UK semi-detached house
The unit sits outside like this one. No tank, no deliveries, no flue.

Three things to do before the window opens

  1. Check whether ECO4 pays you more. If anyone in the household receives a qualifying benefit, ECO4 can fund the whole job, which beats £9,000 towards it.
  2. Get your quotes lined up now. Installers can apply for vouchers from 21 July 2026, and the good ones book up. A quote in hand means you claim early in the window, not in the March 2027 scramble.
  3. Insist on a heat loss calculation. Rural properties vary wildly. A room-by-room calculation is required under MCS rules and it is what separates a heat pump that delights from one that disappoints.

One more time, because stale articles keep repeating it: there is no insulation prerequisite. That rule was scrapped in April 2026. The full scheme detail is in our Boiler Upgrade Scheme guide.

Your questions, answered

How much is the oil boiler replacement grant?
£9,000 off an air source or ground source heat pump for homes currently heated by oil or LPG, available 21 July 2026 to 31 March 2027 through the Boiler Upgrade Scheme in England and Wales. That is £1,500 more than the standard £7,500 grant.
Can I get a grant to replace my oil boiler with another oil boiler?
No. The grant funds the switch away from oil to low-carbon heating, mainly heat pumps. Rural off-gas homes can alternatively get £5,000 towards a biomass boiler.
Why do oil-heated homes get more money?
Oil homes are mostly rural, off the gas grid, and expensive to heat, so the government added £1,500 to speed up the switch. Heating oil also exposes households to volatile prices and 4-figure tank refills, which the uplift is designed to end.
Is a heat pump powerful enough to replace an oil boiler in an old rural house?
Usually yes, if the system is sized properly. Insist on a full room-by-room heat loss calculation, which MCS rules require. Larger or draughtier homes may need a bigger unit and some radiator upgrades, and since April 2026 there is no insulation prerequisite for the grant.
What if I'm on benefits and heat with oil?
Check ECO4 first. It can fully fund the work rather than giving £9,000 towards it. Our eligibility checker sorts this in 60 seconds and tells you which route pays more in your situation.