Boiler Upgrade Scheme plus the Warm Homes Loan
Last reviewed: 20 July 2026
For a heat pump in England or Wales, you take the £7,500 Boiler Upgrade Scheme grant first, then borrow the balance through the Warm Homes Loan. The grant reduces the amount you finance, and the loan can also cover radiators and pipework. Here is how the two fit together.
A worked example
Take a typical semi-detached home fitting an air source heat pump, with radiator and pipework upgrades included. The figures below come from our data pack and match the heat pump calculator.
| Step | Amount |
|---|---|
| Installed heat pump, semi-detached | £12,000 |
| Radiators and pipework | £2,500 |
| Boiler Upgrade Scheme grant | − £7,500 |
| Borrowed on the Warm Homes Loan | the balance, well within the £20,000 cap |
The grant is deducted before you borrow, so you only finance what is left. Radiators and pipework sit inside the heat pump loan, not as a separate cost.
The order that matters
- Get an MCS-certified installer to quote and apply for the £7,500 Boiler Upgrade Scheme grant, which they claim on your behalf.
- Once the Warm Homes Loan is open, borrow the balance, including the ancillary works, up to the measure cap.
- Your monthly repayment is based on the borrowed balance, not the full installed cost.
Sources
- GOV.UK Boiler Upgrade Scheme guidance
- DESNZ Warm Homes Loan Scheme Scheme Rules, June 2026, via GOV.UK
Last reviewed: 20 July 2026
Know the day the loans go live
The Warm Homes Loan Scheme is expected to open to the public in September 2026. Join the list and we will email you when lenders open, with occasional funding updates in between.