Proposed BUS Grant Increase for Oil and LPG Homes
- Leah Robson
- Apr 28
- 3 min read
There’s been plenty of attention on the government’s latest energy announcement, but one detail stands out for households off the gas grid.
A proposed BUS grant increase for oil and LPG homes would raise support from £7,500 to £9,000 for eligible properties. The change is expected to come into effect in July 2026, signalling a clear shift towards providing more targeted support where it’s needed most.
What the proposed BUS grant increase for oil and LPG homes means
The Boiler Upgrade Scheme (BUS) already helps homeowners move away from fossil fuel heating by contributing towards the cost of installing a heat pump. Increasing the grant for oil and LPG households recognises that switching isn’t always straightforward, and that some properties may need additional investment to make the transition work effectively.
By raising the funding level, the proposed BUS grant increase for oil and LPG homes aims to make low-carbon heating a more realistic option - particularly for homes facing higher upfront costs.
A targeted push for off-gas households
Oil and LPG users are more common in rural areas, where access to the mains gas network isn’t available. These households have historically had fewer options and often higher heating costs as a result.
The proposed BUS grant increase is clearly aimed at addressing that imbalance, helping off-gas households move away from fossil fuels and towards low-carbon heating.
This change is also intended to support those households and small businesses in England and Wales most affected by rising energy costs. By electrifying their heating they gain greater certainty over their energy bills.
Looking ahead
Although the proposed BUS grant increase for oil and LPG homes hasn’t been implemented yet, the direction of travel is clear. Support is becoming more targeted, with a growing focus on households that face the biggest barriers to switching. This could make the move to a heat pump more achievable in the near future - both financially and practically.
Stay up to date
We’ll be keeping a close eye on when the proposed BUS grant increase for oil and LPG homes comes into force - currently expected in July 2026 - along with any further updates that could impact off-gas households.
If you’d like to stay in the loop, follow us on our social channels - we’ll be sharing the latest news, insights, and what it means for you as soon as we have it.
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FAQs
What is the proposed BUS grant increase for oil and LPG homes?
The government has proposed increasing the Boiler Upgrade Scheme (BUS) grant from £7,500 to £9,000 for homes currently using oil or LPG, to help support the switch to low-carbon heating.
When will the BUS grant increase come into effect?
The proposed BUS grant increase for oil and LPG homes is expected to come into force in July 2026, although this has not yet been implemented.
Who is eligible for the increased BUS grant?
The increase is expected to apply to households in England and Wales replacing oil or LPG heating systems with a heat pump, subject to final scheme rules.
Why is the grant being increased for oil and LPG homes?
The change is aimed at supporting off-gas households,many of which are in rural areas, who may face higher costs or fewer options when switching to low-carbon heating.
Can I apply for the £9,000 grant now?
No, the increased grant is not yet available. Applications currently remain at the existing £7,500 level until the new funding is introduced.
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