Heat pump grants under threat: why now is the time to act

October 13, 2026

If you’ve been thinking about a heat pump, the window for the best possible deal may be closing. Reports this week say the government is preparing to cut heat pump funding, and two valuable savings already end in March 2027.

Here’s what we know, what we don’t, and what it means for your home.

What’s been reported

On 12 October 2026, the Guardian and the i Paper reported that ministers are preparing to cut funding for the Boiler Upgrade Scheme to help pay for defence spending. According to the i Paper, the Treasury favours keeping the scheme open but with smaller grants.

Nothing has been officially confirmed yet. But when a grant scheme’s budget is squeezed, there are usually two outcomes: smaller grants, or funding running out sooner.

What’s already confirmed

Even without any cuts, two savings end on 31 March 2027:

  • The £9,000 oil and LPG grant. If you’re replacing oil or LPG heating in a home without mains gas, you can currently get £9,000 off an air source heat pump. After March, that drops back to £7,500.
  • 0% VAT on heat pumps. Heat pump installations are currently VAT-free. From 1 April 2027, VAT goes back up to 5%.

For an oil or LPG home, waiting until after March could mean paying around £2,000 more for the same system, before any further cuts.

Why leaving it late is risky

A good heat pump installation isn’t something we rush. Each one needs a home survey, a room-by-room heat loss design, a grant application and an installation date. That usually takes several weeks, and we expect a lot of homeowners to want to get in before March.

Starting now gives you time to do it properly, without the last-minute queue.

What you can do now

  1. Book a survey. We’ll visit, measure your home and design a system around it.
  2. Get your grant application in. We apply to Ofgem for you. Once your voucher is issued, the grant is reserved for your installation.
  3. Choose your installation date. We’ll fit around you, and the grant comes straight off your bill.

Why PBT Installations

We’re an MCS certified, Trustmark approved installer based in Cheltenham, with over 15 years’ experience across Gloucestershire and the Cotswolds. We design heat pumps, solar PV and batteries together, so every part of the system works with the others. And yes, we heat old stone homes too.

Don’t wait to find out what the cuts look like. Call us on 01242 323923, email info@pbtinstallations.co.uk or book your survey online.

Grant and VAT details correct as of 13 October 2026. We’ll update this post as soon as the government confirms any changes.