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Boiler Upgrade Scheme vs ECO4: which UK heat pump grant should you apply for?
Last updated 2026-08-02
Most people researching UK heat pump grants run into the same two names — the Boiler Upgrade Scheme (BUS) and ECO4 — and assume they're competing options for the same thing. They're not. They're built on completely different logic, and which one applies to you depends mostly on your income and benefits situation, not your property.
The short version
| Boiler Upgrade Scheme | ECO4 | |
|---|---|---|
| Who it's for | Any property owner, regardless of income | Low-income households or those on qualifying benefits |
| Where | England & Wales | England, Scotland & Wales (Great Britain) |
| Value | Flat grant: £7,500 (air/ground source heat pump), £9,000 in some off-grid oil/LPG cases | Can fund the full cost, including insulation, for eligible households |
| Who pays | UK government (via Ofgem) | Large energy suppliers, obligated by law |
| How it's claimed | Deducted upfront by an MCS-certified installer | Arranged by an ECO4-registered installer or your local council |
| Runs until | March 2030 | Winding down through 2026, successor scheme expected |
The Boiler Upgrade Scheme, in plain English
The Boiler Upgrade Scheme is the one to look at if you own your home (or a rental property you let out) and simply want to swap a gas, oil, LPG or electric heating system for a heat pump. There's no income test — it's open to homeowners, landlords and second-home owners alike, with one grant per property. Since April 2026 you no longer need a valid EPC to apply, which removed a common blocker. The installer applies for the grant on your behalf through the Ofgem portal and simply deducts it from your bill, so you never have to claim anything back yourself.
The catch: it only covers air-to-water heat pumps, ground source heat pumps and biomass boilers at meaningful values right now (see our separate guide to the air-to-air situation if you were hoping to use it for an AC-style system).
ECO4, in plain English
ECO4 works completely differently. Instead of a flat grant available to everyone, it's a legal obligation placed on large energy suppliers to fund energy-efficiency and heating upgrades for households that are likely to be struggling with fuel costs. You typically qualify by receiving a benefit such as Universal Credit, Pension Credit, or income-related ESA/JSA, or by meeting a low-income threshold assessed by your local council (the "LA Flex" route). If you qualify, ECO4 can be far more generous than BUS — sometimes covering a heat pump and the insulation work needed to make it effective, with no upfront cost at all.
How to decide which one to pursue
- Do you or anyone in your household receive a qualifying benefit, or is your household income low? Start with ECO4 — it's usually the better deal if you qualify, and can cover far more than heating alone.
- Do you own the property and just want a straightforward, fast grant regardless of income? The Boiler Upgrade Scheme is simpler to access and has no waiting list logic tied to it.
- Not sure which applies? Many MCS/ECO4-registered installers will check both routes for you as part of a free quote — it costs nothing to ask.
Living in Scotland, Wales or Northern Ireland? Each nation also runs its own scheme on top of these two — see our full UK grants guide for details.
Not financial advice. Grant terms and values change often \u2014 always confirm the current details on the official page linked above before making a decision. Want a quick, personalised read on your own situation?
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