The £2,500 Boiler Upgrade Scheme grant (England and Wales) for air-to-air (A2A) heat pumps is genuinely live as of 2026. But a very common installation setup likely disqualifies you from claiming it — and it's an interaction most guides don't cover clearly, because it sits at the intersection of two separate facts that are individually well-documented but rarely connected.
The catch, explained plainly
Air-to-air heat pumps heat and cool rooms — they don't provide hot water. Because of this, most households installing A2A keep their existing hot water arrangement running alongside it, commonly a gas boiler.
The grant's eligibility rules, however, indicate the property must have no retained fossil-fuel heating. A gas boiler kept running for hot water — even if it's doing nothing else — appears to count as retained fossil-fuel heating for this purpose.
Put together: installing A2A while keeping gas for hot water, which is the normal way most households would use A2A, likely fails the eligibility test for the grant. This isn't a rare edge case — it's close to the default setup for anyone choosing A2A specifically because they don't want to (or can't) convert their whole home to an air-to-water system.
Who this likely does and doesn't affect
Likely ineligible: any household keeping a gas, oil, or LPG boiler running for hot water (or any other purpose) alongside a new A2A installation — even if A2A covers 100% of the space heating.
Possibly eligible: an all-electric household (no retained fossil fuel heating at all) installing A2A, or a household pairing A2A with a separate electric hot water solution instead of keeping a gas boiler. Even then, it isn't settled whether A2A that covers only some rooms, rather than the whole home, qualifies — so don't count on the grant until an installer or Ofgem has confirmed it for your setup.
What to do before assuming you qualify
Don't take a generic "the grant exists" statement — including this page — as confirmation you personally qualify. Confirm directly with an MCS-certified installer or Ofgem before factoring the £2,500 into your budget. If it turns out you don't qualify, that's a meaningful chunk of expected funding disappearing from the plan, so it's worth confirming early, not after committing to a quote.
See our full heat pump vs air conditioning guide for the complete running-cost comparison, or use our free calculator to model your own home with grant eligibility factored in honestly, not assumed.