Boiler Upgrade Scheme 2026: A Tradesman's Guide to the £7,500 Heat Pump Grant
The Boiler Upgrade Scheme now offers grants up to £7,500 and runs until 2030. Here's how UK plumbers and gas engineers can capitalise on this growing market.
Written by Tom Ellis · Senior Trades Editor
Last updated: 26 October 2026
The Boiler Upgrade Scheme (BUS) has just become the biggest opportunity in UK plumbing and heating for a generation. Extended to 2030, with grants raised to £7,500 for heat pumps, and backed by £19.5 billion in government clean heat funding — this is a market that will reshape what it means to be a heating engineer in the UK.
If you're a plumber or gas engineer who hasn't yet looked seriously at heat pump certification, this is your wake-up call. The homeowners are ready. The grants are sitting there. The only thing standing between you and £400–£800 day rates is MCS certification.
What Is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is a UK government grant programme that helps homeowners replace fossil fuel heating systems with low-carbon alternatives. Launched in May 2022, it provides upfront vouchers that reduce the cost of heat pump and biomass boiler installations.
The scheme is administered by Ofgem. Critically, homeowners cannot apply directly — vouchers are applied for by MCS-certified installers on behalf of their customers. That means if you're not MCS registered, you're invisible to this market.
Current BUS Grant Amounts (2026)
| Technology | Grant Amount |
|---|---|
| Air Source Heat Pump (ASHP) | £7,500 |
| Ground Source Heat Pump (GSHP) | £7,500 |
| Biomass Boiler | £5,000 |
The ground source heat pump grant increased from £6,000 to £7,500. As of the Spring 2026 Budget, the scheme has been confirmed to run until at least 2030.
Why the Extension to 2030 Is a Game-Changer
With a confirmed runway to 2030, the market has certainty. The government has committed £19.5 billion to clean heat over the next five years as part of Labour's Warm Homes Plan. Over 80,000 BUS vouchers have already been issued since 2022, but that's a fraction of what's coming.
The Climate Change Committee estimates the UK needs to install 600,000 heat pumps per year by 2028 to meet net zero targets. We're currently installing around 80,000–90,000 per year. Someone has to close that gap.
The Skills Gap Is Your Opportunity
The UK is 50,000 heat pump engineers short. By 2028, the government and industry bodies project a shortfall of at least 50,000 qualified engineers needed to deliver on net zero heat targets.
Air source heat pump installations are growing at 35% year-on-year. The number of MCS-certified installers is growing far more slowly.
That supply-demand imbalance directly translates into premium day rates. Qualified heat pump installers are currently earning:
- £400–£500/day for a standard air source heat pump retrofit
- £600–£800/day for ground source or complex installations
- £500–£700/day on Warm Homes Plan funded social housing projects
Compare that to what an average plumber earns — see our plumber day rate UK guide — and the premium for heat pump qualification is substantial. Gas engineers can check their baseline at our gas engineer day rate UK guide.
The window for early movers is now. As the government pushes harder toward 2030, more plumbers and gas engineers will get certified. The premium rate window won't last forever — get in early.
What Is MCS Certification and Do You Need It?
MCS stands for Microgeneration Certification Scheme. It's the industry quality standard that certifies installers of small-scale renewable and low carbon technologies, including heat pumps.
You must be MCS certified to:
- Apply for BUS vouchers on behalf of customers
- Access Warm Homes Plan contracts
- Access ECO4 scheme funding
- Market your business as a heat pump installer to homeowners who are grant-eligible
How Much Does MCS Certification Cost?
MCS certification typically costs £800–£1,200 per year in scheme fees. You'll also need:
- Relevant heat pump training (often 2–5 days, £800–£2,000)
- Suitable tools and equipment
- Updated insurance — see tradesman insurance options to ensure your cover includes heat pump work
The total first-year investment typically runs £2,000–£4,000. At £500/day premium rates, that pays back in less than two weeks of heat pump work.
How the Boiler Upgrade Scheme Works in Practice
Step-by-step process:
- Customer enquiry — A homeowner contacts you interested in replacing their gas boiler with a heat pump
- Survey and quote — You survey their property and build your quote. Use the Sleepless Tradesman app to build professional quotes in minutes
- Voucher application — You apply for the BUS voucher on behalf of the customer via the Ofgem BUS portal. Vouchers are valid for 3 months
- Installation — Complete the installation to MCS standards
- Voucher redemption — After installation, you redeem the voucher, which pays the grant directly to you
- MCS certificate issued — You issue the customer an MCS installation certificate
Eligible Properties: What Your Customers Need to Know
Not all properties are BUS-eligible. Common eligibility requirements:
- Property must be in England, Wales, or Scotland
- Must have a valid EPC with no outstanding recommendations for loft or cavity wall insulation (unless unsuitable)
- The heating system being replaced must be a fossil fuel boiler, electric storage heater, or direct electric heating — not an existing heat pump
- One grant per property, ever
The Warm Homes Plan: Even More Work Coming
Labour's Warm Homes Plan allocates £13.2 billion to energy efficiency improvements, with heat pumps as a central technology. This includes:
- Social housing retrofit programmes
- ECO4 scheme for low-income households
- Great British Insulation Scheme integration
- Clean Heat Market Mechanism (coming 2028)
Plumbers and gas engineers who build heat pump expertise now will be well-positioned for all of these revenue streams.
Should You Bother With Gas Safe Alongside Heat Pumps?
Yes — at least for now. Gas boilers will still be installed and serviced until 2035, and the existing stock of 24 million gas boilers in UK homes will need servicing for decades.
The smart play is to build heat pump capability alongside existing Gas Safe registration. This diversifies your revenue: keep your existing customers while building a growing heat pump installation business at premium rates.
Next Steps: How to Get Started
- Check your existing qualifications — most Gas Safe engineers and qualified plumbers have a solid foundation for heat pump training
- Choose a training provider — City & Guilds Level 3 Award in the Refrigerant Handling (2078), and the BPEC or City & Guilds heat pump units are the standard routes
- Select a certifying body — NAPIT, NICEIC, or HIES are the main options
- Update your insurance — confirm your tradesman insurance covers heat pump installations
- Start marketing — once certified, list on the MCS installer finder
- Upgrade your quoting workflow — the Sleepless Tradesman app helps you produce professional heat pump quotes quickly, with materials breakdown and margin calculation
The homeowners are there. The grants are there. The day rates are there. The gap is in qualified engineers.
Frequently Asked Questions
What is the Boiler Upgrade Scheme and who runs it?
The Boiler Upgrade Scheme (BUS) is a UK government grant programme run by Ofgem. It provides homeowners with upfront vouchers worth up to £7,500 toward the cost of installing a heat pump or £5,000 for a biomass boiler, to replace a fossil fuel heating system.
How long will the Boiler Upgrade Scheme run?
The scheme has been extended and is confirmed to run until at least 2030, as announced in the Spring 2026 Budget. The government has committed £19.5 billion to clean heat funding over this parliament.
Do I need MCS certification to install heat pumps under the Boiler Upgrade Scheme?
Yes. MCS certification is mandatory to apply for BUS vouchers on behalf of customers. Homeowners cannot access the grant unless their installer is MCS registered.
How much does it cost to become MCS certified as a heat pump installer?
MCS scheme membership typically costs £800–£1,200 per year. Add in heat pump training (£800–£2,000) and you're looking at a total first-year investment of around £2,000–£4,000 — typically recovered within a fortnight at current heat pump day rates.
What day rates can a qualified heat pump installer charge in 2026?
MCS-certified heat pump installers are currently earning £400–£800 per day, depending on the complexity of the installation. See our plumber day rate UK guide for comparison.
Can a gas engineer install heat pumps?
Yes, Gas Safe registered engineers have a strong foundation for heat pump training. You'll need to complete specific heat pump and refrigerant handling qualifications and obtain MCS certification before accessing BUS work.
What properties are eligible for the Boiler Upgrade Scheme?
Properties in England, Wales, and Scotland can be eligible, provided they have a valid EPC with no outstanding recommendations for loft or cavity wall insulation, and the homeowner is replacing a fossil fuel, electric storage, or direct electric heating system. One grant per property, ever.
Written by Russell Brooks, Founder of Sleepless Tradesman. Published 27 October 2026.
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