Unlock Big Savings: Air Source Heat Pump Grant & Free Boiler Upgrade

If you’re a homeowner in the UK who wants to improve your heating and reduce your bills, there’s some good news for you. The government is providing two significant schemes to encourage you to upgrade your heating: the free boiler upgrade and the air source heat pump grant. But which one is best for you?
Let’s simplify it, with real-world examples and straightforward advice you can apply to make an informed choice for your home—and your pocketbook.
What’s the Government Offering and Why?
The UK is striving to cut carbon emissions. A significant portion of that is all about heating. Old gas boilers are one of the largest emitters in homes. To encourage people to switch to cleaner systems, the government is providing two primary forms of support:
- Air Source Heat Pump Funding (Part of the Boiler Upgrade Scheme)
- Free Boiler Upgrade (ECO4 Scheme)
All three have varying aims, conditions, and advantages. Let’s consider each in further detail.
What Is the Air Source Heat Pump Grant?
The Boiler Upgrade Scheme (BUS) aims to support the transition from gas boilers to low-carbon heating systems. Through the scheme, you are entitled to up to £7,500 towards the cost of getting an air source heat pump fitted.
What is an Air Source Heat Pump?
It’s a technology that draws warmth from the outside air and uses it to heat your home. Even if it is freezing outside, it will be able to do its job. It’s electricity-powered, but since it’s so much more efficient than a gas boiler, your energy usage in general decreases.
Real Example: Jane in Manchester
Jane replaced her 15-year-old gas boiler with an air source heat pump with the aid of the grant. She covered around £3,000 personally, after the grant had settled the balance.
What Is the Free Boiler Upgrade Scheme?
The ECO4 scheme helps low-income households to get free new boilers for old, inefficient ones. If your boiler is over 10 years old and you meet certain criteria, you might be able to get a new A-rated boiler fitted for free.
Who Qualifies?
To be eligible, you usually need to:
- Claim specific benefits such as Universal Credit or Pension Credit.
- Reside in a home with a low Energy Performance Certificate (EPC) score.
- Have an inefficient boiler (typically older than 10 years)
You don’t need to worry about paperwork—approved installers handle most of the process for you.
Case Study: Tom in Birmingham
Tom is a single dad living in a council house. His 12-year-old boiler kept breaking down. He applied for the free boiler upgrade and got a new condensing boiler installed within two weeks. He noticed a 25% drop in his energy bills in the first three months.
Which Option Is Best for You?
Consider applying for the Air Source Heat Pump Grant if:
- You own your home
- Your current boiler is working but old
- You’re looking to completely switch from gas heating
- You’re able to contribute some initial costs
- You’re planning long-term savings and energy efficiency
Choose the Free Boiler Upgrade if:
- You’re on certain benefits or low income
- You can’t afford a big upfront payment
- You want a quick fix for an old boiler
- You’re not ready to switch to heat pumps
How to Apply
For the Air Source Heat Pump Grant:
- Find an MCS-certified installer
- Get a quote and energy assessment
- The installer submits the grant application for you.
- You pay the remainder after grant is applied
For the Free Boiler Upgrade:
- Check eligibility on an ECO4 partner site
- Book a survey (usually free)
- Installer submits application
- Boiler installed—no payment needed
Common Questions
Can I get both?
No. You must choose one based on your needs and financial situation.
Is planning permission required for installing a heat pump?
Usually not. Most heat pumps are covered under permitted development, but check with your local council.
How long does installation take?
- Heat pump: 2 to 5 days
- Boiler: Usually 1 day
Will this affect my home’s value?
Yes—in a good way. Properties with energy-efficient systems tend to appeal more to buyers and often achieve higher sale prices.
Why Act Now?
These schemes won’t last forever. The government has funding limits and strict deadlines. And, in addition, the earlier you act, the earlier you can begin to save.
Also, as gasoline prices go up, it makes good financial sense to invest in more efficient heat.
Final Thoughts
Replacing your heating system needn’t cost an arm and a leg or stress you out. Whatever you choose, the air source heat pump grant or the free boiler upgrade, you’re doing something that’s good for your home, your pocket, and the environment.
The key is understanding which one fits your situation—and taking action while support is still available.