Sir Keir Starmer has confirmed that households on heating oil across England and Wales will be eligible for a £9,000 discount on a heat pump from July 21, providing an extra £1,500 compared to the previous £7,500 grant under the Boiler Upgrade Scheme. The announcement comes as Starmer quits as Prime Minister.
Boiler Upgrade Scheme Increase
The Boiler Upgrade Scheme grant is being increased by 20%, from £7,500 to £9,000, effective from July 21. This change aims to help thousands of homes cut their energy bills by switching to cleaner heating systems.
Minister for Energy Consumers Martin McCluskey stated: "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."
Industry Reaction
Charlotte Lee, CEO of the Heat Pump Association UK, commented: "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."
Ian Rippin, CEO at MCS, added: "This uplift is an important step in making heat pumps more accessible to rural households, allowing them to see the benefits the technology can offer. As the UK’s quality mark for small-scale renewables like heat pumps, our mission is to give everyone confidence in home-grown energy. We do this by setting the standards you should always expect from an MCS certified installer and the products they use, while providing robust protections to give you peace of mind in your investment. Households considering making the switch to a heat pump with the help of the BUS can search for an MCS certified installer near them using our Find an Installer tool."
Impact on Vulnerable Households
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. 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. Supporting the shift to cleaner heating in these homes can help deliver greater stability and lower bills. The real test will be whether this support reaches those most at risk and makes homes genuinely affordable to heat."
