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UK Government Extends the Boiler Upgrade Scheme

What It Means for Homeowners in 2026

The UK Government has announced a major expansion to the Boiler Upgrade Scheme (BUS), opening the grant to cover air-to-air heat pumps for the first time.

This update, revealed yesterday, marks one of the most significant steps yet in helping households transition to low-carbon, energy-efficient heating.

We’ve broken down what the changes mean, who is eligible, and how homeowners can take advantage of the newly expanded funding.

What’s New? Air-to-Air Heat Pumps Now Eligible

Until now, the Boiler Upgrade Scheme only funded air-source and ground-source heat pumps, with grants of up to £7,500.

The expansion means:

Air-to-air heat pumps are now included

This is the first time the UK Government has offered grant funding for air conditioning units that also provide heating.

These systems are ideal for:

• Flats and smaller homes
• Properties without central heating
• Homes needing zoned heating and cooling
• People wanting a lower-cost way to cut bills and carbon

With installation starting from around £4,500, the BUS grant will cover more than half the cost for many households.

Apply for a grant

Extra Support: Heat Batteries Included

The Government is also offering £2,500 off heat batteries, which store heat produced at night for use throughout the day – perfect for pairing with heat pumps and solar PV.

This change supports flexible, low-cost heating and helps households further reduce reliance on fossil fuels.

Upvolt Energy

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