The heat pump industry is booming.
Many of the government grants are linked to heat pumps, and demand is climbing.
But the compliance around Boiler Upgrade Scheme jobs can be confusing, especially if you’re moving in from other trades.
Here’s exactly what you need. And where the Insurance Backed Guarantee fits.
What is the Boiler Upgrade Scheme?
The Boiler Upgrade Scheme (BUS) is the government grant that helps homeowners in England and Wales swap a fossil-fuel boiler for a low-carbon heating system. The grant comes off the homeowner’s invoice up front. It’s not a rebate they claim back later. And you, the MCS-certified installer, claim it through Ofgem on their behalf.
| System | Current BUS grant |
|---|---|
| Air-source heat pump | £7,500 |
| Ground-source heat pump | £7,500 |
| Air-to-air heat pump | £2,500 |
| Biomass boiler | £5,000 |
There’s a temporary uplift running to 31 March 2027: air-source heat pumps in off-gas-grid homes on oil or LPG attract £9,000 rather than £7,500. One grant is available per property. The home must be in England or Wales.
What you must have to do BUS work
Here are the main requirements:
- You must be MCS-certified for the technology you’re fitting.
- You must give the homeowner an Insurance Backed Guarantee that meets the MCS-approved financial protection standard.
- You must also be a member of an approved consumer code — RECC or HIES. This one is a Boiler Upgrade Scheme rule, not an MCS rule. So it still applies even though the redeveloped MCS scheme no longer makes code membership part of certification. Ofgem’s Boiler Upgrade Scheme installer guidance (paragraph 2.16) says installers on the redeveloped MCS scheme “must continue to hold membership with one of the two approved consumer codes” to do BUS work.
| Requirement | Why it exists |
|---|---|
| MCS certification | The grant can only be claimed on work by an MCS-certified installer. |
| Insurance Backed Guarantee (min. six years) | Protects the homeowner if your company stops trading during the guarantee. |
| Consumer-code membership (RECC/HIES) | Required for BUS work. It is set in the scheme’s own rules, not by MCS. |
| Ofgem application | You claim the grant through Ofgem; the discount comes off the invoice. |
One thing to watch: Ofgem’s wording is “until further notice”, so the rule could change. The approved codes are the ones listed in the government’s notice of standards for the Boiler Upgrade Scheme. Check that page before you renew or cancel a membership. Ofgem can reject or withdraw a voucher if you are not in an approved code.
Why the Insurance Backed Guarantee matters
A heat pump install is a big job — high value. The homeowner is often stretching to afford their share on top of the grant. If your firm stopped trading two years in and a fault appeared, they’d have an expensive problem and no one to call. The Insurance Backed Guarantee is what stops that.
It sits behind your own written guarantee and pays out if your company ceases to trade during the term, so a valid claim still gets put right. Subject to the terms and conditions of the policy, it covers your workmanship and the materials you fitted. The heat pump unit itself is covered by the manufacturer’s warranty — a separate thing. You may need both, and on grant-funded work you’ll want deposit protection in the mix too.
Moving into heat pumps from another trade?
Plenty of plumbers, heating engineers and electricians are adding heat pumps to what they already do. The compliance feels heavier than it is once someone maps it out for you. The order that works: get MCS-certified, sort your Insurance Backed Guarantee so you can register jobs from day one, and join RECC or HIES if you are doing Boiler Upgrade Scheme work. Do that and you can quote a BUS job with confidence instead of guessing.
Adding heat pumps and want the Insurance Backed Guarantee handled?
HomePro is MCS-accredited to provide the six-year Insurance Backed Guarantee that BUS work needs. So you can register jobs without the admin swallowing your evening. Call 0800 131 0500 (Mon–Fri, 9am–5pm) or join here.
Frequently asked questions
Do I need an Insurance Backed Guarantee for every BUS heat pump job?
Yes. Under the redeveloped MCS scheme you must back your workmanship guarantee with MCS-approved financial protection — an Insurance Backed Guarantee for a minimum of six years — on domestic jobs. That includes grant-funded heat pump work.
How much is the Boiler Upgrade Scheme grant?
Currently £7,500 for an air-source or ground-source heat pump, £2,500 for air-to-air, and £5,000 for a biomass boiler. Off-gas-grid oil and LPG homes get £9,000 for an air-source heat pump until 31 March 2027. Figures are government-set — check the latest before quoting.
Do I still need RECC or HIES for BUS work?
Yes. It is a Boiler Upgrade Scheme requirement rather than an MCS one, so it still applies after you move across to the redeveloped MCS scheme. Ofgem’s installer guidance says installers on the redeveloped scheme must keep membership of one of the two approved codes — RECC or HIES — until further notice. Because of that wording, check the guidance before you renew or cancel.
Who claims the grant — me or the homeowner?
You do, through Ofgem. The grant is taken off the homeowner’s invoice up front rather than paid back to them later.
Join UK installers who provide FCA-regulated Insurance Backed Guarantees with every job through HomePro. Call 0800 131 0500 or join the HomePro network today.
Disclaimer: This post is for general information only. It is not financial, legal or insurance advice. While we take care to make sure the information is accurate, scheme rules, legal requirements and third-party details can change without notice — always check the latest position with the relevant scheme or official body before acting on anything here. HomePro accepts no liability for any loss arising from errors or omissions in, or reliance on, the information in this article. Insurance Backed Guarantees are subject to the terms, conditions and limitations of the individual policy.
