The routes at a glance
Read on 8 October 2026, here is where each route stands. “Who” is the headline test; the scheme’s own page has the rest.
| Route | Where | Who it is for | How you access it | Dated limit |
|---|---|---|---|---|
| Boiler Upgrade Scheme | England, Wales | Property owners replacing fossil fuel or electric heating | Installer applies; £7,500 or £9,000 | Closing date 30 December 2029 (GOV.UK); £1,500 extra to 31 March 2027 |
| ECO4 | Great Britain | Low-income, fuel-poor and vulnerable households | Through energy suppliers’ delivery partners | Measures installed to 31 December 2026 |
| Warm Homes: Local Grant | England | Privately owned homes with EPC D to G, income, postcode or benefits test | Online application; the local council contacts you | No end date found on the GOV.UK page |
| Warm Homes Loan | Participating lenders; can sit alongside the Boiler Upgrade Scheme (England and Wales) | Borrowers buying eligible measures | Apply to a participating lender | Initial consumer launch from September 2026 |
| Nest | Wales | Homeowners who meet Nest’s tests | Nest advice line or online checker | None stated on the page |
| Home Energy Scotland | Scotland | Owner-occupiers (primary residence) | You apply, before work starts | Subject to availability; no end date stated |
Start with the Boiler Upgrade Scheme: does it apply?
Six quick answers; contact details are optional and only needed if you want us to reply by email. Indicative only — your MCS installer checks eligibility and Ofgem makes the decision.
Likely £7,500
Owner-occupied home in England on mains gas replacing the boiler with an air-to-water heat pump.
Rules: GOV.UK “Apply for the Boiler Upgrade Scheme” and Ofgem’s property owner guidance (v5.1). Grant bands from the notice of grant categories updated 21 July 2026.
ECO4
The Energy Company Obligation is a legal duty on energy suppliers to fund energy efficiency measures in the homes of people on low incomes or in fuel poverty. Ofgem’s page says ECO4 applies to measures installed from 1 April 2022 and will run until 31 December 2026, following a nine-month extension. You do not apply to Ofgem: suppliers arrange installations through delivery partners, so Ofgem advises residents to contact their energy supplier. Ofgem’s page does not list heat pumps by name, so whether a heat pump is offered depends on the assessment of your home.
Two practical points. First, the end date is close, and measures must be installed by it, so an assessment started late may not complete. Second, ECO4 is about the whole home’s needs; a heat pump is one possible outcome, not a promised one. Ofgem’s installer guidance (3.36) says a heat pump promoted as a measure under ECO is not eligible for the Boiler Upgrade Scheme, so ECO4 and the grant cannot both fund the same heat pump. If both look possible, get the answer in writing before work starts.
Warm Homes: Local Grant (England)
GOV.UK describes the grant as open to homes in England that are privately owned (by you or your landlord) with an EPC rating of D, E, F or G. The income test is: a household income of £36,000 a year or less, or a qualifying postcode area, or someone in the household receiving certain benefits. Your local council arranges a survey and, if it finds suitable work, funds it with no cost to the applicant. GOV.UK lists air source heat pumps among the improvements, alongside insulation, smart controls and solar panels. You apply online, and the council typically responds within 10 working days to gather information and arrange the survey.
This is a council-assessed grant, so the council chooses the measures. If a heat pump is on offer, it replaces the Boiler Upgrade Scheme route for that property rather than topping it up. We found no end date stated on the GOV.UK page; ask your council how long its allocation runs.
Warm Homes Loan Scheme
This is a loan from a participating lender, not a grant. The scheme rules (DESNZ, September 2026) say lenders design products for one or more eligible measures, and set caps by technology, shown before the Boiler Upgrade Scheme grant is deducted:
- Air-to-water heat pump: £20,000
- Ground source heat pump: £35,000
The rules state the scheme is meant to complement the Boiler Upgrade Scheme: an applicant in England or Wales applying for the grant can apply for a loan to cover installation costs above it. The government support is a capital grant to lenders of up to 20% of the loan, which lenders must use to offer a reduced rate. That is a lower rate, not a promise of zero interest, and lenders still run their own affordability checks. The rules describe an initial consumer launch from September 2026, so availability depends on whether a lender has live products. We cannot name lenders or quote rates here; see heat pump finance for how to compare.
Paying the balance after a grant
The grant comes off the price before you pay anything, so the question is only how to fund what is left. These are the routes people use — this site does not arrange credit or recommend a lender.
| Route | How it works | What to check |
|---|---|---|
| Savings | Pay the balance on the installer’s payment schedule. You own the system outright. | How much deposit is asked for up front, and whether it is protected under the installer’s consumer code. |
| Mortgage further advance or green home loan | Some lenders offer borrowing earmarked for energy improvements, sometimes at reduced rates. | The representative APR, the total amount repayable and any fees — compare against simply paying from savings. |
| Installer-arranged credit | Some installers introduce a credit broker so the balance is paid monthly. | The lender must be authorised by the Financial Conduct Authority. Ask for the APR and total repayable in writing before you sign anything. |
| Scotland only | Home Energy Scotland offers an interest-free loan of up to £7,500 alongside its own grant (not the Boiler Upgrade Scheme). | Apply to Home Energy Scotland before work starts. |
A note on VAT (not a finance route): installers apply 0% VAT to a supply-and-install job in a home until 31 March 2027, and 5% after. Check the quote shows no VAT on the installation; equipment bought without installation is standard-rated.
Nest (Wales) and Home Energy Scotland
Nest is the Welsh Government’s scheme. Its page offers free advice and home improvements, listing heat pumps, insulation and solar panels, plus repair or replacement of boilers and storage heaters for people without heating or hot water. The page itself does not set out the eligibility tests, so use the Nest eligibility checker or advice line. Wales also uses the Boiler Upgrade Scheme, so a Welsh owner can look at both; the Wales section of grants by country sets them side by side.
Home Energy Scotland offers owner-occupiers who live in the property a grant of up to £7,500 for an air, ground or water source heat pump providing all the heating and hot water, plus an optional interest-free loan of up to £7,500 and a £1,500 rural and island uplift. Landlords are not eligible, hybrid and air-to-air systems are ineligible, and work must not start until the funding offer is in writing. See the Scotland section.
What combines and what cannot
| Combination | Position |
|---|---|
| Boiler Upgrade Scheme + 0% VAT rate | Compatible. The VAT rate applies to the installation to 31 March 2027, then 5%. |
| Boiler Upgrade Scheme + Warm Homes Loan | Allowed by the loan rules: the loan covers cost above the grant. |
| Boiler Upgrade Scheme + earlier insulation funding | Allowed. GOV.UK says prior energy efficiency funding does not disqualify you. |
| Boiler Upgrade Scheme + another government-funded heat pump on the same property | Not allowed. GOV.UK excludes properties already given government funding or support for a heat pump or biomass boiler. |
| Boiler Upgrade Scheme + ECO4 on the same heat pump | Not allowed. Ofgem’s installer guidance (3.36) makes a heat pump ineligible if it has been promoted under ECO or has received any other grant from public funds. |
| Home Energy Scotland + Boiler Upgrade Scheme | Different nations: the Boiler Upgrade Scheme does not cover Scotland. |
| Warm Homes Loan + another grant for the same measure | Lenders ask borrowers to confirm the measure is not funded by another public grant or loan, with exceptions for the Boiler Upgrade Scheme and the Home Energy Scotland Grant. |
For combinations not listed, such as a loan for the remaining cost after ECO4 funding, the sources above do not give a rule (and ECO4 plus the Boiler Upgrade Scheme on the same heat pump is excluded, Ofgem installer guidance 3.36). Ask the supplier, council or lender in writing.
End dates, without the drama
- ECO4: 31 December 2026, so there is a real cut-off for installations.
- Boiler Upgrade Scheme £9,000 band: applications to 31 March 2027; the scheme’s closing date is 30 December 2029 on GOV.UK (Ofgem can issue vouchers to 31 December 2029), subject to the annual budget (end date and budget).
- 0% VAT: to 31 March 2027, 5% from 1 April 2027.
- Others: the Warm Homes Local Grant, Nest and Home Energy Scotland pages we read state no end date. That is not a promise; budgets can still be allocated in full.
None of these is a reason to sign a contract without comparing quotes. Use the eligibility checker to see where the main grant lands, and the air source grant guide for how it is claimed.
Honest questions about other funding
“I receive benefits, so I should be able to get a free heat pump.”
Possibly, but through a route other than the Boiler Upgrade Scheme. Lower-income households may qualify for the Warm Homes: Local Grant in England, ECO4 (until 31 December 2026), Nest in Wales or Home Energy Scotland support, depending on where you live. Each has its own tests and none is automatic; the council, supplier or agency assesses your home. Be cautious of anyone who phones or knocks promising a free heat pump; see grant scams.
We cannot tell you whether you qualify for any of them. Their own eligibility pages decide.
“Can I use ECO4 and the Boiler Upgrade Scheme together on the same heat pump?”
GOV.UK says you cannot get the Boiler Upgrade Scheme grant if the property has already been given government funding or support for a heat pump or biomass boiler. A heat pump paid for through another government scheme is therefore treated as an either-or choice. Ofgem’s installer guidance (3.36) settles the ECO4 case: a heat pump is ineligible for the Boiler Upgrade Scheme if it has also been promoted as a measure under ECO, or has received any other grant from public funds towards its purchase or installation. Funding for insulation does not count against you. If both seem possible, ask the installer and Ofgem before signing.
“A cheap loan should make the cost irrelevant.”
The Warm Homes Loan Scheme rules describe a government contribution of up to 20% of the loan to lenders, to be reflected in a reduced interest rate. The rules do not promise a particular rate or zero interest, and lenders still check affordability. Compare the rate and total repayable against paying from savings.