Heat Pump Grants in North East England (2026)

North East England households get £7,500 off an air-to-water air source heat pump through the Boiler Upgrade Scheme (BUS), deducted straight from the quote by your MCS-certified installer. Until March 2027 the grant is £9,000 for homes heated by oil or LPG off the gas grid, running until 31 March 2027. Stack 0% VAT on top (until 31 March 2027) and most households here pay £500 - £6,500 out of pocket on a typical £8,000 to £14,000 installation (indicative, June 2026).

Grant amounts and prices accurate as at June 2026; reviewed weekly.

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The Boiler Upgrade Scheme in 60 seconds

£7,500 off an air-to-water or ground-source heat pump in England and Wales. Air-to-air units get £2,500 (added in 2026) and biomass boilers £5,000.
£9,000 until March 2027 for homes heated by oil or LPG (off the gas grid)
No EPC hoop any more: the EPC-certificate precondition was removed on 28 April 2026.
Your installer claims it for you: the installer must be MCS-certified and applies on your behalf, so the grant comes straight off the quote. You never front the £7,500.
Who qualifies: owner-occupiers, small landlords and second homes; most new-builds do not.
Horizon: grant amounts and end dates are set by government and can change at fiscal events; the £9,000 oil and LPG rate runs until March 2027.

Read the full Boiler Upgrade Scheme guide →

What you can claim in North East England

Government grant

Boiler Upgrade Scheme (BUS)

£7,500 off an air-to-water or ground-source heat pump (£2,500 for air-to-air) in England and Wales. Until March 2027, homes heated by oil or LPG can claim £9,000 (until March 2027). The EPC-certificate precondition was removed on 28 April 2026. Your installer must be MCS-certified and claims the grant for you - it comes straight off the quote.

Official scheme page →

£7,500 - £9,000

off your quote

UK-wide tax relief (automatic)

0% VAT on heat pump, solar and battery installations

Residential installations of heat pumps, solar panels and home batteries are zero-rated for VAT until 31 March 2027 (then 5%). Applied automatically by the installer - typically worth £1,000-3,000 on a heat pump job versus standard 20% VAT.

Official guidance →

0% VAT

until 31 Mar 2027

Headline support in North East England

Up to £9,000

Boiler Upgrade Scheme £7,500 standard, £9,000 for oil and LPG heated homes until March 2027, plus 0% VAT until 31 March 2027. Claimed for you by your MCS-certified installer.

The heating picture in North East England

Most homes here heat with a mains-gas boiler, and the Ofgem price cap gas rate has risen 39% since spring 2026 (5.74p per kWh in April-June to 7.97p from 1 October 2026). With £7,500 off through the Boiler Upgrade Scheme and 0% VAT until March 2027, replacing the boiler with an air source heat pump at end-of-life is now cost-competitive up front and on running costs. The coldest English region - cold-climate performance and defrost behaviour matter; modern units hold output well below freezing.

Read the Boiler Upgrade Scheme guide

What an air source heat pump costs in North East England

Indicative installed prices for the UK market as at June 2026, with 0% VAT already applied. Always treat these as ranges, not quotes.

Installed price before grant

£8,000 - £14,000

Typical out of pocket after grant

£500 - £6,500

Ofgem average install (8kW, Jan 2026)

~£12,500

Out-of-pocket cost by town

Indicative post-grant prices across North East England. Click a town for a detailed breakdown including brand options and installer quotes.