Issued by: Department for Energy Security and Net Zero

Thousands of households on heating oil are making the switch to a heat pump using the £9,000 Boiler Upgrade Scheme grant.

New figures published today (27 August) show total applications in July reached record highs, with 8,150 households applying to install a heat pump.

The record-breaking figures are an 81% increase compared to June this year, thanks to additional interest from households on heating oil as people opt for cheaper energy bills with clean heat technology.

The grant was increased by 20%, from £7,500 to £9,000, to help protect households on heating oil and LPG by from spikes in fossil fuel prices.

In June, leaflets dropped on to the doormats of 200,000 eligible homes with information on how to claim the extra funding, which will still be available until March next year for thousands of eligible families across England and Wales.

Minister for Local Energy and Jobs Martin McCluskey said: “Households reliant on heating oil were among the worst affected when the conflict in the Middle East started.

“Installing a heat pump is the best way for people on heating oil to get certainty over their bills and avoid costly spikes in prices due to events out of our control.

“Seeing record numbers in applications for the Boiler Upgrade Scheme is really promising. I would urge eligible billpayers on oil to take advantage of the £9,000 grant to make the switch.”

The new figures come alongside the rollout of plug-in solar, which is legal to buy and install in Great Britain today.

The easy-to-install panels can be plugged into homes across the country, saving households up to £110 a year on their bills through clean, homegrown power.

Rural properties have shown strong demand for heat pumps, with 49% of BUS grants since scheme launch going to these households and 38% to homes off the gas grid.

Across the country, the Warm Homes Plan will help roll out clean technology to millions, cutting bills and securing thousands of good jobs. This includes low and no interest loans to fund energy efficiency home improvements such as solar panels, batteries, and heat pumps.

Anne from Wales: Using the £9,000 Boiler Upgrade Scheme grant to replace an oil boiler in her off-grid Victorian cottage

Anne said: “When the price of oil suddenly doubled, I thought, ‘Well, this is just bonkers.’ I absolutely hate the idea of burning oil anyway, so I started looking into heat pumps.

“The £9,000 grant made the upfront cost feel far more manageable. Getting that extra £1,500 towards replacing an oil boiler was significant.

“Everything moved much faster than I expected. Our installation date was only three weeks away, and I thought we’d be waiting months. The installation itself was incredibly pain-free. The team cleared everything up and left everything tidy.

“We haven’t had a full winter with it yet, but we’re looking forward to not walking around shivering, putting on loads of extra layers or carrying a hot-water bottle everywhere.

“If you’re considering a heat pump, go for it.”

Ross from Cornwall: Using the £9,000 Boiler Upgrade Scheme grant to replace his oil heating

Ross said: “When Jake (the heat pump installer) sent through the original quote, I almost had to sit down when I looked at it. The original quote was £200. That’s on top of the £9,000 grant, so £9,200 effectively. In actual fact, I decided to upgrade the heat pump that I wanted, so it comes in at £530. It was still, you know, a lot less than I’d been quoted elsewhere with a minimum disruption model. So, I’ve got the guys working in the house at the moment. They’ve been brilliant. There’s no sort of lifting of carpets, no replacement of radiators in this house.

“What we’ve done is we’ve insulated ourselves against future price rises as far as the price of oil is concerned. Electricity, of course, can go up, can go down, and we know that it’s going up in October, but that’s going to be a minimal increase in my budget, I feel, particularly with the rate that I’m on at the moment.”

Catherine from Essex: changing from an oil boiler to an air source heat pump as part of a property conversion

Catherine, from Essex, chose to install an air source heat pump as part of a major renovation that transformed her 1950s property into a modern three-bedroom home. With most of the house effectively rebuilt, it felt like the right moment to move away from an oil boiler and invest in a heat pump.

Catherine found the process of researching and setting up the system straightforward, with support from a trusted local installer who continues to service it annually. Seven years on, the system has proven reliable and low-maintenance, requiring only occasional repressurising. The heat pump runs quietly in the background, with no noticeable noise, and has “just ticked along nicely,” delivering a dependable, efficient heating solution that aligns with her long-term environmental goals.

Adrian from Carmarthenshire: heat pump brings reliable warmth to an 1800s stone home

When Adrian’s oil boiler reached the end of its life, replacing it would have meant moving the oil tank into the middle of the driveway. With no gas connection he chose a heat pump as the practical alternative for his detached stone house in Carmarthenshire.

“We weren’t eco warriors,” he said. “We had to bite the bullet and look at other options.”

The installation was completed in around three days, with a new water tank, pipework and upgraded radiators fitted to help the system work efficiently. The results have been immediate: a consistently warm home, easier control through an app, and reliable performance even in freezing weather.

“The house has never been so warm,” Adrian said, explaining that it now stays at a steady 19°C during the day while he works from home.

“We’ve got down to -6°C this winter and it was still warm in the house. The technology is amazing…I would say to go for it.”

Lucy from Shropshire, who made the switch from oil heating a year ago, said: “I’ve been really impressed with our heat pump. It’s great value for money and the whole system works brilliantly with our existing radiators. We’ve already recommended it to several friends; it really has been a game-changer for our heating costs.

Mark, a heat pump owner from Suffolk, said: “Making the switch away from oil was simple and felt like an easy choice. When you’re paying more than you’d like for heating your home, finding a cleaner, more affordable alternative just makes sense.”

Notes to editors:

Read the Boiler Upgrade Scheme statistics: July 2026: https://www.gov.uk/government/statistics/boiler-upgrade-scheme-statistics-july-2026

More information on Anne’s move to a heat pump using the £9,000 Boiler Upgrade Scheme grant: https://www.airahome.com/en-gb/case-studies/anne-heat-pump-installation

More information on Ross’s move to a heat pump using the £9,000 Boiler Upgrade Scheme grant: https://www.youtube.com/watch?v=p14wkxQdVL0

More information on Catherine’s move to a heat pump: https://www.getaheatpump.org.uk/case-studies/catherine-lives-in-essex-in-a-1950s-home-she-converted-into-a-three-bed-house---90-new-build

More information on Adrian’s heat pump installation: https://www.getaheatpump.org.uk/case-studies/adrian-lives-in-carmarthenshire-an-1800-built-stone-detached-house-with-attic-insulation-and-double-glazing

More information on Lucy and Mark’s move to a heat pump: https://octopus.energy/press/more-news-press-releases/bye-bye-b-oiler-heat-pump-demand-soars-as-thousands-of-brits-switch-to-cleaner-cheaper-heating

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