The Boiler Upgrade Scheme: a plain guide for Gateshead

England's Boiler Upgrade Scheme contributes £7,500 towards every qualifying air source installation. Earnings are irrelevant, the contractor submits the claim, the money leaves the invoice before you pay it, and the conditions that actually matter are a clean EPC, MCS certification, and a gas, oil, LPG or electric system on the way out.

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What the scheme actually is

Shortened to BUS by everybody who deals with it, the Boiler Upgrade Scheme is the Government's headline mechanism for shifting homes off gas, oil, LPG and direct electric heating and onto heat pumps. Every qualifying air source installation attracts a flat £7,500. It has been running since 2022, and unusually for a scheme of this kind its budget has grown rather than been quietly cut, with funding confirmed into the late 2020s. For a borough household the effect on the decision is total: a £10,000 job becomes £2,500 of real money.

The conditions that genuinely bite

The route the money takes

You are not the applicant at any point. The order of events runs: survey, written quote showing the price net of grant, installation, commissioning, MCS certificate issued, contractor files with Ofgem, Ofgem emails you to confirm the work happened, you confirm, £7,500 is paid to the contractor. Your entire contribution is one email. Because the deduction happens up front you are never waiting on a reimbursement or covering the gap from savings, which is the part people most often get wrong when they hear the word grant.

Exclusions worth planning around

Hybrids sit outside the scheme, which is why every hybrid quote issued here arrives alongside a grant-funded full conversion for a fair comparison. Exchanging one heat pump for another is outside it. So is any property that has already received a payment. And because of the EPC rule, fabric requirements sometimes have to be dealt with first, which is exactly the kind of thing that should emerge at survey stage rather than mid-installation.

What sits beside it

Two other schemes matter locally. ECO4 funds insulation and heating improvements for lower-income and vulnerable households, and it can pay for the fabric work that makes a heat pump viable in the first place; where that route looks plausible the survey flags it. Zero-rated VAT applies to heat pump installation until at least 2027, so nothing quoted through this site carries VAT on top. Electrically heated households across Wrekenton, Deckham, Felling and Springwell should look at both, because in combination they cover more than most people expect.

The practical next move

Eligibility gets confirmed during the survey as a matter of routine: EPC checked, fabric assessed, contractor certification verified. Put the property details into the form and the written quote comes back with the grant arithmetic already worked for your particular address.

Frequently asked questions

Is the £7,500 grant means tested?

No. Your income is never examined. The scheme cares about the property, the heating being replaced and the contractor's certification.

Can landlords claim it?

Yes, small landlords qualify on exactly the same terms as owner-occupiers, which matters more each year as rental efficiency rules tighten across the borough's terraced stock.

My EPC recommends loft insulation. What now?

It has to be actioned before the claim, but a top-up costs a few hundred pounds and takes hours. The survey identifies it early so it never derails a booked installation.

Can I use ECO4 and BUS together?

In some situations, particularly where ECO4 pays for the fabric work first. The survey identifies households whose circumstances make that worth chasing.

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