Homes heated by oil now eligible for £9,000 BUS grant

Households in England and Wales using oil heating can now get £9,000 towards switching to a heat pump. The government is increasing the Boiler Upgrade Scheme grant by 20% for oil installations, from £7,500, from 21 July 2026. 

Leaflets are dropping on to the doormats of 200,000 eligible homes in England and Wales this week with more information on how to claim the extra funding. 

Minister for Energy Consumers Martin McCluskey said: “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.”

Matt Copeland, Head of Policy and Public Affairs at National Energy Action, says: “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.”