The UK’s biggest heating policy change this week: Boiler Upgrade Scheme grants updated (effective 21 July 2026)
If you’ve been sitting on the fence about a heat pump, the last seven days brought the clearest signal yet that the government wants more homeowners to make the switch.
On 21 July 2026, GOV.UK updated the Boiler Upgrade Scheme (BUS) notice of approved grant categories and values. This isn’t just a small tweak. It expands eligibility and updates grant values for heat pumps and related configurations, with particular attention to homes that aren’t on mains gas (oil/LPG/coal/electric heated properties), and a wider range of “real-world” installations that better reflect how UK homes actually work.
What happened (in plain terms)
The BUS is the main government grant for homeowners in England and Wales to replace fossil-fuel heating with low-carbon heating—primarily air source and ground source heat pumps. The 21 July 2026 update changes the recognised categories and the grant levels tied to them.
While the exact category table is detailed, the headline outcomes for homeowners are:
- Higher and/or more targeted grant support for heat pumps, including off-gas-grid scenarios (with figures in the update indicating £7,500 for many properties and up to £9,000 in some off-gas-grid situations).
- Wider eligibility for replacing systems like oil, LPG, coal or direct electric heating, and recognition of more heat pump configurations that installers routinely specify.
- A clearer push to accelerate domestic decarbonisation—more installations, faster.
For homeowners in places like Bordon, Whitehill, Liphook, Alton, Farnham and Haslemere, this is especially relevant because the housing stock is mixed: suburban gas-connected homes sit alongside rural and edge-of-town properties that may still rely on oil, LPG or older electric heating.
Why it matters
1) It changes the “maths” of switching
For most households, the decision to move from a boiler (or old electric heating) to a heat pump comes down to three numbers:
- Upfront cost (install price minus grant)
- Running cost (electricity consumption versus heat delivered)
- Future-proofing (likely regulations, fuel price volatility, and property value)
By increasing grant values and supporting more situations, the BUS reduces the upfront pain point that stops many people from getting past the quotation stage.
2) It’s a particularly big deal for off-gas homes
If you’re on mains gas in Farnham, parts of Alton, or central Haslemere, you can compare a modern boiler’s running costs to a heat pump’s running costs and it’s a nuanced choice based on insulation, radiator sizing and your tariff.
If you’re off-gas—more common around the fringes of Liphook, rural lanes near Whitehill, or properties outside Bordon—your current fuel may be LPG or oil. Those fuels are often expensive, sometimes volatile, and bring storage, delivery and maintenance considerations. Bigger grants aimed at off-gas scenarios can shift heat pumps from “nice idea” to “practical project.”
What it means technically (without the jargon)
Heat pumps only work brilliantly when the system is designed for them
A heat pump isn’t a like-for-like boiler swap. A boiler makes very hot water quickly. A heat pump runs more like a fridge in reverse: it moves heat from outside to inside, and works best delivering heat steadily at lower temperatures.
That has a few technical consequences that homeowners need to understand before signing anything:
- Flow temperature matters. If your radiators are sized for a boiler running at 70–80°C, a heat pump running nearer 45–55°C may struggle unless radiators (or emitters) are upgraded.
- Heat loss is the foundation. Your home’s heat loss calculation dictates heat pump size. Oversizing costs more and can run less efficiently; undersizing leads to cold rooms in January.
- Hot water is a separate design piece. Most heat pump installs use a hot water cylinder, because producing hot water instantly (combi style) is usually not how a domestic heat pump is set up.
What “wider eligibility” often means in the real world
When BUS rules broaden categories, it typically helps homeowners whose homes don’t match a neat template. For example:
- Homes replacing older electric heating (storage heaters, panel heaters) where a heat pump plus cylinder and upgraded radiators makes a significant comfort difference.
- Properties with oil or LPG where the old system may be due for replacement anyway (tanks, flues, ageing boilers).
- Installations requiring particular heat pump arrangements due to space constraints or layout—common in tighter plots around Haslemere or older homes in Alton where plant space is limited.
The practical takeaway is: more households now fall into a grant-backed pathway, but you still need a technically sound design and an installer who will commission the system properly.
What it means financially: upfront costs, running costs, and payback reality
Upfront cost: the grant reduces the gap, but doesn’t remove the need for upgrades
The BUS is a contribution, not a blank cheque. Even with grants in the £7,500 range (and potentially up to £9,000 for some off-gas situations referenced in the update), many homes still need some combination of:
- bigger radiators or additional emitters
- a hot water cylinder
- pipework alterations
- electrical works (consumer unit checks, dedicated supply, isolators)
- minor insulation improvements to make the system viable
If you’re budgeting, don’t just compare “boiler replacement cost” to “heat pump cost.” Compare whole-system cost to whole-system benefit (comfort, stability, safety, and future bills).
Running cost: efficiency is everything
Heat pump performance is usually described by SCOP (seasonal coefficient of performance). Think of it like “units of heat out” per “unit of electricity in.” In simple terms:
- If a system averages a SCOP of 3.0 across the year, you get roughly 3 kWh of heat for every 1 kWh of electricity.
- The lower your required flow temperature, the higher the efficiency tends to be.
That’s why emitter sizing and heat loss work are not optional extras. They are the difference between a system that feels cheap to run and one that disappoints.
Payback: treat it as a “replacement cycle” decision
Homeowners often ask, “How many years until it pays back?” That’s not always the right framing. A better question is:
“My current heating system will need replacing within X years—what replacement choice gives me the best comfort and cost control for the next 10–15 years?”
If your oil boiler is 15+ years old near Liphook, or your LPG system around Whitehill is increasingly temperamental, the BUS update may significantly improve the economics of choosing a heat pump at the point you’d otherwise spend money on another fossil system.
Local relevance: what this update means in Bordon, Whitehill, Liphook, Alton, Farnham and Haslemere
Housing stock shapes the best option
In our area, we see a wide mix: newer estates, 1930s–1980s builds, and character properties with extensions that have uneven insulation. That mix affects how straightforward heat pump upgrades are.
- Bordon & Whitehill: Many homes have reasonable garden/side access which can help with outdoor unit positioning and pipe runs. Some households still have older heating controls—upgrading controls and balancing can make a noticeable comfort difference even before any heat pump work begins.
- Liphook: A blend of village homes and rural properties—off-gas situations are more common once you’re outside the centre. The BUS emphasis on off-gas replacements is particularly relevant here.
- Alton: A lot of solid, family homes where radiator upgrades are feasible. If you’re on mains gas, you’ll want careful design to ensure heat pump running costs stack up—especially if insulation is middling.
- Farnham & Haslemere: Space constraints, conservation considerations, and aesthetic concerns can be bigger topics. Outdoor unit placement, noise assessment, and routing pipework neatly become part of the “real job,” not a quick add-on.
Noise, location and planning: the practical bits people forget
Modern air source heat pumps are far quieter than older models, but siting still matters. If you live in a tighter spot in Haslemere or a close in Farnham, you need to think about:
- distance to neighbours’ windows
- mounting method (wall brackets vs slab)
- vibration isolation
- airflow clearance (don’t box it in)
A good installer will treat this as part of design, not something to “see on the day.”
What homeowners should do next (so you actually benefit from the grant)
Step 1: Work out whether you’re a strong candidate
You are usually a stronger heat pump candidate if:
- your home is reasonably insulated (or can be) and draughts are manageable
- you have space for a hot water cylinder and an outdoor unit
- you’re willing to upgrade some radiators if needed
- your current system is oil/LPG/older electric, or your gas boiler is near end-of-life
You may need more careful assessment if you have lots of single glazing, large open-plan areas with high heat loss, or very limited outdoor space.
Step 2: Ask for a proper heat loss survey (not a “rule of thumb” quote)
Don’t accept a heat pump size based purely on floor area. You want room-by-room heat loss, emitter output checks and a proposed design flow temperature. In plain English, you’re asking the installer to prove the system will heat your house efficiently—especially important in older Alton properties, rural Liphook homes, and character buildings around Farnham and Haslemere.
Step 3: Check what’s happening with radiators and hot water
Before you sign, make sure the plan clearly states:
- which radiators will be upgraded (if any)
- cylinder size and location
- whether pipework is being resized or re-routed where needed
- what controls you’ll have (and how to use them)
Heat pumps reward good commissioning: system flushing, correct inhibitor, proper balancing, and controls configured to run low and steady.
Step 4: Pressure-test the running cost estimate
Ask the installer how they’ve estimated annual consumption. A credible answer will reference heat loss, expected flow temperature, and an assumed seasonal efficiency. If the estimate hinges on “you’ll save loads” without technical backing, treat it as a red flag.
Step 5: If you’re not switching yet, still take advantage of the moment
Even if a heat pump isn’t right for you this year, this BUS update is a cue to prepare:
- Improve loft insulation and fix draughts
- Replace a couple of undersized radiators during routine decorating
- Upgrade heating controls and get the system balanced
- If you’re on oil/LPG, plan the replacement cycle so you aren’t forced into a rushed decision in winter
These measures improve comfort now and make a future heat pump easier and cheaper to implement.
The bottom line: more money is available, but good engineering still decides whether it feels worth it
The government has made heat pumps more accessible on paper by increasing and refining BUS grants and widening eligible scenarios. For homeowners in Bordon, Whitehill, Liphook, Alton, Farnham and Haslemere, the opportunity is real—especially where oil, LPG, coal or older electric heating is in play.
But the grant does not replace the need for correct sizing, suitable emitters, and careful commissioning. If those parts are done well, a heat pump can deliver steady comfort and a more predictable long-term heating setup. If they’re rushed, it can be an expensive frustration even with a grant attached.
To book a home heating assessment and BUS eligibility discussion with Embassy Gas, call (01420) 558993, email helpdesk@embassygas.com, or book online at https://www.embassygas.com/book