Households across North Yorkshire that still rely on oil to heat their homes have just been given a major reason to consider switching to a heat pump.
From 21 July 2026, the government is increasing the Boiler Upgrade Scheme grant for homes on oil heating from £7,500 to £9,000, a 20% uplift designed to help rural households move away from volatile oil prices.
Why oil-heated homes can now claim £9,000 off a heat pump
The Boiler Upgrade Scheme (BUS) is the government grant that pays towards the cost of replacing an old heating system with a heat pump. It’s been running since 2022, but until now the grant was a flat £7,500 regardless of what you were replacing.
From 21 July 2026, homes currently heated by oil get an extra £1,500 on top, taking the total grant to £9,000. Around 200,000 leaflets are landing on doormats across England and Wales this week telling eligible homeowners about it, and a large number of those households are in rural areas just like North Yorkshire.
Who qualifies for the increased grant
The £9,000 grant applies if:
This is the detail that matters most locally. A large number of properties around Ripon, Thirsk, Boroughbridge and the rural fringes of Harrogate were never connected to mains gas and rely on oil. If that’s you, this grant was designed with your situation in mind.
Why this matters for rural North Yorkshire homes
Oil heating is far more common in this part of Yorkshire than in cities, simply because so many villages and outlying farms sit off the gas network. That’s exactly the gap this funding is trying to close.
It also changes the usual heat pump objection. The most common pushback we hear is that a heat pump costs more to run than a gas boiler, but that’s a comparison against mains gas. Against oil, with prices as unpredictable as they’ve been, the maths looks very different. Combine cheaper running costs with £9,000 off the upfront price, and the payback period shortens considerably.
How much could you save
A typical air source heat pump installation costs between £10,000 and £18,000 fully fitted, depending on the size of the property and the existing system. With a £9,000 grant taken straight off that cost, many rural households will be looking at a net cost similar to, or sometimes less than, replacing an ageing oil boiler outright, with lower running costs and far more price stability going forward.
The exact figure depends on your property, insulation and current system, which is why a proper site survey matters more than any online calculator.
Common questions about the £9,000 heat pump grant
Is this grant only for oil heating homes? The £9,000 figure is specifically for households switching from oil. Homes on mains gas or LPG can still claim the standard £7,500 Boiler Upgrade Scheme grant.
Will a heat pump actually keep an old stone or rural property warm? Yes, with the right sizing and design. We regularly install heat pumps in older, solid-wall rural properties across Ripon, Thirsk and Boroughbridge. The key is getting the heat loss calculation and radiator sizing right at survey stage, not assuming a one-size-fits-all system.
Do I need to replace my radiators? Sometimes, not always. It depends on the size of your existing radiators and the heat output your home needs. We’ll tell you honestly at survey stage rather than padding out the job.
How long does installation take? Most domestic air source heat pump installations take 2 to 4 days, including any radiator or cylinder upgrades.
Can I apply for the grant myself, or does my installer do it? Your MCS-certified installer applies for the grant on your behalf as part of the installation process. You don’t deal with Ofgem directly.