Let’s be honest—replacing a boiler doesn’t come cheap. But if you are in the UK, there is some good news. You may not need to pay the entire amount out of your own pocket. Due to government assistance such as boiler replacement grants and the wider Energy Grant schemes, you can save a considerable amount of money while getting your heating system upgraded. Here’s how it works, who is eligible, and how actual homeowners have been helped.
Why Are These Grants Being Offered?
Boilers are a massive component of home energy consumption in the UK. Older systems use more energy and are expensive to run. The government wishes to lower carbon emissions and decrease energy bills for households. That’s why it launched boiler replacement grants under schemes such as the Boiler Upgrade Scheme and Energy Company Obligation (ECO).
These are not loans—you don’t repay them. They are part of a wider initiative to make homes more energy efficient and cut the UK’s use of fossil fuels.
What Are Boiler Replacement Grants?
Boiler replacement schemes are government-subsidised grants that provide partial funding towards replacing an out-of-date or inefficient boiler. There are ones specifically for those on low income, and then there are those available to householders nationwide who are converting to environmentally friendly options such as heat pumps.
If you’re eligible, you might save thousands of pounds on your upgrade.
Real Case: The Jackson Family, Manchester
The Jacksons lived in a semi-detached house with a 15-year-old gas boiler. It worked—barely. Their heating bills were pushing £200 per month in winter. After applying through the ECO scheme, they qualified for a new A-rated condensing boiler at no cost.
The result? Their bills dropped by over 30%, and their home was much warmer. The grant covered the full installation.
Key Grant Options Available in 2025-2026
Let’s break down the main schemes available to UK homeowners:
1. Boiler Upgrade Scheme (BUS)
If you’re considering switching your boiler for a low-carbon alternative such as an air source heat pump, this scheme could provide:
- £7,500 off an air source heat pump
- £7,500 off a ground source heat pump
- A £5,000 discount on a biomass boiler (available exclusively in rural areas)
Who’s eligible?
- You must own your home in England or Wales
- A valid Energy Performance Certificate (EPC) is required.
- Your existing heating system must be a fossil fuel boiler.
2. Energy Company Obligation (ECO4)
This scheme is focused on helping low-income households and those in fuel poverty.
What’s covered?
- Covers either the full or partial cost of a new boiler
- Cavity wall, loft, or floor insulation in some cases
Eligibility criteria:
- You receive certain benefits (e.g. Universal Credit, Pension Credit)
- Your boiler is broken or highly inefficient
- Your home must have low energy efficiency, indicated by a poor EPC rating.
3. Local Authority Delivery (LAD) and Home Upgrade Grant (HUG)
These schemes work alongside local councils to help improve heating and insulation in low-income homes, particularly in off-gas-grid areas.
How to Apply
The process is easier than many people expect:
- Check eligibility. Use an eligibility checker on trusted websites (many energy suppliers have one).
- Choose a certified installer. They’ll carry out a survey and confirm if your home qualifies.
- Submit an application. The installer usually handles this step.
- Schedule the work. Once approved, your new boiler or heating system is installed.
It’s that easy.
Real Case: Grace in Norfolk
Grace is a retired teacher living alone. She was spending far too much on heating an old house with an outdated oil boiler. When her neighbour told her about the Boiler Upgrade Scheme, she applied and was accepted for a £7,500 grant towards an air source heat pump.
Now her house remains cozy, her energy bills are reduced, and she is satisfied that her heating system is ecologically sound.
Why This Matters in 2025-2026
Energy prices are unpredictable. Many UK families are still dealing with the effects of the energy crisis. Grants like these are not only practical—they’re essential.
Also, UK regulations are shifting. Fossil fuel boilers are being phased out. Making the switch now, with financial help, puts you ahead of the curve.
What Are the Long-Term Savings?
Let’s look at the numbers:
- Replacing an old G-rated boiler with an A-rated boiler can save £300–£500 annually on heating bills
- Upgrading to a heat pump, particularly with good insulation, can reduce your yearly bills by even more
- The average new boiler lasts 10–15 years—so that’s thousands saved over time
Additionally, many of these upgrades can boost your home’s value. Buyers are looking for efficient, green homes. An upgraded heating system is a big selling point.
Tips to Maximise Your Savings
- Act quickly. Funding is limited and demand is rising.
- Combine grants where possible — in some cases, you may qualify for both a boiler grant and insulation support.
- Use approved installers. Always go with certified professionals to ensure compliance and guarantee approval.
Final Thoughts
Getting support for a new boiler isn’t just possible—it’s a smart move. The UK government is providing actual financial assistance in the form of boiler replacement grants and Energy Grant schemes to make houses warmer, greener, and less expensive to heat.
Where you live in a city apartment or a rural cottage, there probably is a scheme you can benefit from. The trick is to move fast before the funding ends.
If you’re paying too much for energy or your boiler’s on its deathbed, it’s time to investigate these grants. You might save thousands—and you’ll notice the difference every time you crank up the thermostat.
