New Prime Minister Unveils £9,000 Heat Pump Grants
Households with oil or LPG boilers can now apply for £9,000 grants under the Boiler Upgrade Scheme, following Prime Minister Andy Burnham's assumption of office on Monday. The grant uplift, effective from July 21, aims to accelerate the switch to cleaner heating solutions.
Octopus Energy reports a dramatic surge in demand: enquiries about heat pumps jumped 330 per cent in the first half of 2026, and the number of customers switching from oil and LPG has nearly tripled. The company attributes this to the increased grant, which rose from previous levels to £9,000 under the new Labour government.
Financial Benefits and Customer Experiences
Switching from an oil boiler to a heat pump could save households around £650 annually, according to Octopus Energy. Lucy from Shropshire, who made the switch 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, added: “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.”
Industry Perspective
TJ Root, Heat Pump Programme Director at Octopus Energy, said: “Heat pumps are the single most efficient way to heat a home. With demand from oil and LPG customers up over 300 per cent, it's clear households are choosing a cheaper, cleaner alternative over unpredictable oil price spikes.”
The Boiler Upgrade Scheme, now offering £9,000 grants, is part of the government's broader push to reduce carbon emissions and promote renewable energy. Octopus Energy noted that the announcement in April of the grant increase has already driven a significant uptick in conversions.
