If you heat your home with oil, something may have landed on your doormat this week. The government has begun a 200,000-leaflet drop targeting oil-heated households across England and Wales, and the message is clear: a bigger air source heat pump grant is now available, and the window to act is open.
Here’s what it actually means, who qualifies, and whether it’s worth pursuing.
What is the air source heat pump grant?
The Boiler Upgrade Scheme (BUS) is the government’s main mechanism for helping homeowners switch from fossil fuel heating to low-carbon alternatives. It provides an upfront grant that your installer deducts directly from your installation cost; you never handle the money yourself.
Until now, the standard grant has sat at £7,500 for most homes. From 21 July 2026, that rises to £9,000 specifically for households currently heated by oil or LPG, the highest level of BUS support ever made available. The uplift runs until 31 March 2027, after which it is expected to revert unless extended.
Why are oil households being targeted?
Unlike mains gas, heating oil and LPG prices aren’t protected by Ofgem’s price cap. When global energy markets move, and they have moved sharply in recent years due to geopolitical instability, oil households absorb the full impact with no buffer and no ceiling.
There are around 1.7 million homes in England and Wales in this position, most of them in rural areas. The government’s view is straightforward: the households most exposed to fossil fuel price shocks deserve the most support to get off them.
Who is eligible for a heat pump grant?
To be eligible for the uplifted grant, you generally need to:
- Own the property in England or Wales: this includes owner-occupiers, landlords, and second-home owners
- Currently heat your home with oil or LPG (not mains gas)
- Be replacing that system with an air source or ground source heat pump
- Use an MCS-certified installer to carry out the work
Biomass boilers and air-to-air heat pumps are not included in the uplift. If you already hold a BUS voucher at £7,500, speak to your installer, it may be worth reapplying at the higher rate once the window opens on 21 July, provided your commissioning date falls within the 120-day window.
What does it cost after the grant?
Air source heat pump installations typically range from around £10,000 to £15,000, depending on your property and system specification. With £9,000 taken off, the net cost for many oil households will sit somewhere between £1,000 and £6,000, a significant reduction and broadly comparable to replacing an oil boiler outright.
Is a heat pump actually right for an oil-heated home?
This is the right question, and the honest answer is: often, yes, more so than many people expect.
Many oil-heated homes are rural, detached properties with more space, which works in a heat pump’s favour. The concern that heat pumps only suit modern, well-insulated homes is common but not accurate. A properly designed system, sized correctly for your home’s actual heat loss, can perform extremely well in older rural properties.
What matters most is not the age of your home, it’s the quality of design and installation. A well-specified air source heat pump installation in Cheshire, running at low flow temperatures with the right radiators or underfloor heating, can deliver running costs well below what you’re currently paying for oil, with none of the tank maintenance, delivery logistics, or price spikes.
A note on timing
The £9,000 grant opens on 21 July 2026. Installer slots fill quickly once a new grant level lands, particularly in rural areas where demand already outpaces capacity. If you’re considering applying, starting the survey process now means you’re ready to move when the window opens, not waiting weeks behind others who got there first.
Thinking about switching in Cheshire?
At HOHM, we carry out thorough heat loss surveys before recommending anything. We won’t tell you a heat pump is right for your home until we’ve actually assessed it, and if it is, we’ll design a system built to perform, not just one that gets installed and ticks a box.
Our installations speak for themselves. One of our Cheshire heat pump systems recently ranked in the UK’s top 5 for efficiency on the Heat Pump Monitor leaderboard, independently verified, publicly visible, no sales pitch required.
If you’ve had a leaflet through the door and want to know what it means for your home specifically, get in touch or use our free heat pump estimate tool to get an initial idea of costs.
The grant window is open. Installer slots will fill. Now is the right time to find out where you stand.