Boiler Replacement Schemes in 2025: Your Guide to Grants and Funding

If your boiler’s on its last legs—racking up repair costs or failing to keep your home warm—a replacement might be overdue. But boilers aren’t cheap, with new units costing anywhere from £600 to £5,000 including installation. Thankfully, 2025 offers a range of boiler replacement schemes in the UK designed to ease the financial burden, from government-backed grants to energy company initiatives. Whether you’re aiming for a free boiler or a hefty subsidy, this guide covers the top schemes available now, who qualifies, and how to apply. Let’s dive into the options helping homeowners upgrade their heating in 2025.

Why Boiler Replacement Schemes Exist

Boiler replacement schemes aren’t just about saving you money—they’re part of a bigger push to cut carbon emissions and tackle fuel poverty. Heating UK homes accounts for 18% of the nation’s greenhouse gases, and old, inefficient boilers are a major culprit. In 2025, schemes like the Boiler Upgrade Scheme (BUS) and ECO4 aim to swap out fossil fuel systems for greener alternatives or modern, efficient models. These programs, backed by the government and energy firms, offer funding to make upgrades affordable, especially for low-income households or those on benefits. Understanding what’s out there can unlock thousands in support.

Boiler Upgrade Scheme (BUS): The Low-Carbon Leader

Launched in 2022, the Boiler Upgrade Scheme is the UK’s flagship program for replacing fossil fuel boilers with low-carbon alternatives. In 2025, it’s going strong, with a £295 million budget confirmed for the 2025/26 financial year and plans to run until 2028. Available in England and Wales, BUS offers homeowners £7,500 toward air source or ground source heat pumps (including water source models) and £5,000 for biomass boilers. These grants, applied through Microgeneration Certification Scheme (MCS)-certified installers, cut upfront costs significantly—vital since heat pumps can cost £8,000-£15,000 installed.

To qualify, you must own your property (including second homes or rentals), have a valid Energy Performance Certificate (EPC) from the last 10 years, and be replacing a gas, oil, LPG, or electric system. Biomass boilers require a rural, off-grid location and an emissions certificate. Over 55,000 applications were submitted by late 2024, with demand surging thanks to an extra £50 million boost last year. It’s not a free boiler scheme, but it’s a game-changer for eco-conscious upgrades.

ECO4: Free Boilers for Low-Income Households

The Energy Company Obligation (ECO) scheme, now in its fourth phase (ECO4) through March 2026, targets fuel poverty and energy efficiency. Funded by major energy suppliers like British Gas and EDF, ECO4 provides free or heavily subsidized boiler replacements for low-income households in England, Scotland, and Wales. Unlike BUS, it often covers modern gas boilers (not just low-carbon options), focusing on swapping out inefficient or broken units to slash heating bills.

Eligibility hinges on receiving benefits like Pension Credit, Universal Credit, or Child Tax Credit, and living in a home with a low EPC rating (D-G). Private homeowners, renters (with landlord permission), and some social housing tenants qualify if the property hasn’t had prior heating upgrades. Costs can be fully covered—up to £10,000 in some cases—making it a lifeline for those unable to afford a £2,600-£3,300 combi boiler swap. Contact your energy supplier or local council to check eligibility under ECO4 or its LA Flex extension, which broadens access for low-income earners under £31,000 annually.

Other UK Boiler Replacement Schemes in 2025

Beyond BUS and ECO4, regional and niche schemes fill gaps. In Scotland, the Home Energy Scotland Grant and Loan offers up to £7,500 in grants (or interest-free loans) for heat pumps and energy upgrades, open to all homeowners replacing fossil fuel systems. Northern Ireland’s Boiler Replacement Scheme closed in 2023, but alternatives like the Affordable Warmth Scheme may still assist with heating costs—check with local authorities. British Gas also runs its own ECO-funded program, potentially covering up to £10,000 for eligible customers, blending supplier support with government goals.

For pensioners or vulnerable groups, schemes like the Affordable Warmth Obligation (part of ECO) prioritize free repairs or replacements if your boiler’s beyond repair. These vary by provider and location, so it’s worth calling 0300 123 1234 (England/Wales) or your council to explore options. Funding’s limited, and criteria can be strict—having a broken boiler over 10 years old often boosts your chances.

Costs Without Schemes: What You’d Pay

Without grants, boiler replacement costs in 2025 range widely. A gas combi boiler swap might run £2,600-£3,300, while a system boiler hits £2,800-£3,600. Conventional setups climb to £3,000-£5,000, and heat pumps (BUS-eligible) start at £8,000. Add £3,800-£10,000 for conversions (e.g., electric to gas) or £45 for old unit disposal, and expenses stack up fast. Schemes like BUS and ECO4 can slash these by thousands—or eliminate them entirely—making them worth the application effort.

How to Apply for Boiler Replacement Schemes

Applying varies by scheme. For BUS, find an MCS-certified installer to assess your home and submit the grant request—they deduct the £5,000-£7,500 upfront. ECO4 requires contacting your energy supplier or council, often starting with an online eligibility checker (e.g., entering your postcode and benefits status). Home Energy Scotland offers a similar process via their website or helpline (0808 808 2282). You’ll typically need proof of income, an EPC, and details about your current boiler. Act fast—BUS funding is first-come, first-served, and ECO4’s £1 billion annual pot isn’t infinite.

The 2025 Landscape: What’s Changing?

This year marks a shift. The government scrapped a proposed 2035 gas boiler sales ban, but new-build efficiency rules preclude gas in favor of heat pumps from 2025 onward. BUS’s extension to 2028 and £295 million budget signal a heat pump push, while ECO4’s focus on fuel poverty holds steady through 2026. Rumors of hydrogen-ready boiler incentives linger, but nothing’s confirmed for 2025. Expect tighter eligibility as funding prioritizes decarbonization—traditional boiler grants are fading, replaced by low-carbon options.

Final Thoughts on Boiler Replacement Schemes

In 2025, boiler replacement schemes like BUS and ECO4 offer a golden chance to upgrade your heating affordably—or even for free. Whether you’re eyeing a £7,500 heat pump grant or a fully funded gas boiler via ECO4, the key is eligibility: benefits, property type, and an inefficient system unlock the best deals. Costs without support can soar past £5,000, so don’t sleep on these programs. Contact your supplier, council, or an installer today to see what you qualify for—your wallet and the planet will thank you.