Heat pump vs gas boiler — the numbers, and every grant that changes them

HeatPumpSwitch › Grants 2026 › £9,000 oil and LPG uplift

The £9,000 oil and LPG uplift, explained

From 21 July 2026 an off-gas-grid home on heating oil or LPG can get a total of £9,000 towards a heat pump under the Boiler Upgrade Scheme, instead of £7,500. The window closes on 31 March 2027. Roughly 1.7 million households in England and Wales heat with oil or LPG, and most of them do not know this yet.

The number people get wrong: The uplift itself is £1,500. It takes the total grant to £9,000. Some coverage reports '£9,000 uplift' — that is wrong.

What you need to qualify

Checked 2026-08-11 · GOV.UK — Apply for the Boiler Upgrade Scheme

Why oil and LPG homes are the best case for a heat pump

The reason has nothing to do with the grant. It is that oil and LPG are expensive per kWh compared with mains gas, so the break-even SCOP is far lower. On mains gas you need a SCOP above about 3.6 to save money at the July 2026 cap. Against heating oil you need roughly 2.0 — which almost any competently commissioned system reaches, even on existing radiators.

Worked example: a 1919–1944 detached house on oil

StepValue
Delivered heat needed (space + hot water)29,920 kWh
Oil energy at 85 % boiler efficiency35,200 kWh
Oil volume at 10.35 kWh/litre3,401 litres
Annual oil cost at £0.62/litre£2,109
Heat pump electricity at SCOP 2.810,686 kWh
Annual heat pump cost at £0.2611/kWh + standing charge£2,999
Annual running-cost difference-£890
Installed cost, typical air source£13,000
Less grant with the uplift−£9,000
Net cost, and simple payback£4,000 · no payback

Assumptions behind these figures

  • House: 1919–1944 detached, 140 m², 165 kWh/m²/yr space heat as found
  • Existing oil boiler seasonal efficiency 85 %
  • Heating oil £0.62/litre at 10.35 kWh/litre — editorial estimate, not a regulated price
  • Electricity £0.2611/kWh, Ofgem cap 1 July – 30 September 2026
  • SCOP 2.8, corresponding to a 55 °C design flow temperature on existing radiators
  • Installed cost £13,000 before grant; simple payback, no discount rate, no fuel-price inflation

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Compare at least three installers. Ask each one for the heat-loss calculation and the design flow temperature in writing — that number decides your running cost more than the brand on the box.

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Three things that catch people out

Grant database · How much budget is left · Methodology