Underfloor heating grants and funding: Boiler Upgrade Scheme, Warm Homes Plan and 0% VAT

Grant headlines often mention underfloor heating alongside heat pumps, because the two work well together. That leads many people to expect a grant or a VAT break on the floor itself. In practice, the funding follows the heat source, insulation and renewables, and the floor heating is usually paid for by you.

This guide sets out what each scheme pays for as of October 2026, what it does not, and how VAT works on underfloor heating, heat pumps and controls. Schemes change often, so check the official pages listed at the end before you commit to a quote.

Is there a grant for underfloor heating?

No. None of the main UK schemes lists underfloor heating as a measure in its own right. The Boiler Upgrade Scheme pays towards the heat pump. The Warm Homes Loan Scheme rules list heat pumps, solar, batteries and other renewables, and do not list heat emitters or underfloor heating as eligible measures.

What funding can do is lower the cost of the heat pump that feeds the floor. If you are putting in underfloor heating as part of a move to a heat pump, the grant reduces the total project cost even though the floor heating is not itself funded.

Does the Boiler Upgrade Scheme cover underfloor heating?

Not directly. The Boiler Upgrade Scheme (BUS) is a fixed grant towards installing a low carbon heating system, deducted by your installer from the price on your quote and invoice. The gov.uk guidance does not mention radiators, emitters or underfloor heating, and the grant amount does not change if your installer also fits a new floor.

System installed	BUS grant
Air source (air-to-water) heat pump	£7500
Ground or water source heat pump	£7500
Extra for oil or LPG homes with no mains gas, until March 2027	+£1500
Biomass boiler (rural, off gas grid)	£5000
Air-to-air heat pump	£2500

The main conditions on gov.uk are:

• You own the property. This includes second homes, rental properties and businesses.
• You are replacing a fossil fuel system: oil, gas, electric or LPG.
• The installer must commission and install the system within 120 days of applying.
• Hybrid systems, such as a heat pump alongside a gas boiler, are not eligible.
• Most new builds still under construction and social housing are excluded. Self-builds can qualify.
• One grant per property.

The installer applies for the grant and must be MCS certified. BUS is open in England and Wales only. Scotland has its own scheme, covered below.

Ofgem says the higher £9000 value for eligible off-gas grid homes has applied since 21 July 2026.

What is the Warm Homes Plan and the Warm Homes Loan?

The Warm Homes Plan is the government's programme for home energy upgrades, published on 20 January 2026. For most homeowners the part that matters is the Warm Homes Loan Scheme, which opened to consumers in phases from September 2026.

• How it works: a government-backed loan from a participating lender, not a grant. The lender runs its own credit and affordability checks.
• Where: any home in the United Kingdom.
• Who: owner-occupiers and private landlords borrowing personally.
• Interest: a government grant to the lender cuts the interest rate by up to 5 percentage points, on loans of three years or more.
• Caps: up to £20000 for an air-to-water heat pump and £35000 for a ground source heat pump, before any BUS grant is taken off.
• Installer: must be MCS certified for that measure.

The rules allow ancillary costs for heat pumps, giving radiators, pipework and water tanks as examples. Underfloor heating is not named. Insulation is not funded as part of a heat pump installation. If you want underfloor heating included in a loan, ask the lender and installer to confirm it in writing before you sign.

The Warm Homes Plan also includes free upgrade packages for eligible low-income households, backed by £5 billion of public investment. Like the loan, these focus on heat pumps, solar, batteries and insulation rather than underfloor heating.

What funding is there in Scotland?

In Scotland, the Home Energy Scotland Grant and Loan offers up to £7500 in grant for an air, ground or water source heat pump, plus up to £7500 more as an optional interest-free loan. Remote rural, island and off-gas rural homes can get an extra £1500. The installer must be MCS certified, and funding follows the improvements recommended for your home.

Is there 0% VAT on underfloor heating?

No, not on its own. HMRC's VAT Notice 708/6 sets a 0% rate, until 31 March 2027, for installing a fixed list of energy-saving materials. Underfloor heating is not on the list, and the notice states that a central heating system is not an energy-saving material.

The list includes heat pumps, insulation, solar panels, batteries and controls for central heating and hot water, which covers thermostats, timers and valves. From 1 April 2027 the rate on those materials goes to the reduced rate of 5%.

Two rules decide whether you pay 0% or 20%:

1. It must be supplied and installed. The notice says that energy-saving materials supplied without installing them are standard-rated, and that a sale by a retailer is always standard-rated. Buying a heat pump or thermostats yourself does not get 0%.
2. VAT follows the main job. Work that is ancillary to a qualifying installation can share its rate. APHC guidance gives pipework and radiators fitted with a heat pump as an example. But a job cannot be split into separate invoices to zero-rate the eligible part, and if the heat pump is not the main supply, such as within a full heating replacement or wider refurbishment, the whole job is standard-rated.

The Boiler Upgrade Scheme is not treated as grant funding for VAT, so it does not move a job into the grant-funded VAT rules.

How much VAT will I pay in each situation?

What you do	VAT on the underfloor heating
Buy UFH kit from a merchant, including MaxHeatUFH, and fit it yourself or have it fitted	20% on the kit
Installer supplies and fits UFH on its own, with no heat pump	20%
Installer supplies and fits a heat pump, with UFH as part of that job	Heat pump 0% until 31 March 2027; UFH depends on whether it is ancillary, so get it in writing
Installer supplies and fits heating controls only	Can be 0% until 31 March 2027
Full heating replacement where the heat pump is not the main supply	Whole job 20%

MaxHeatUFH charges 20% VAT on every product it sells, because it supplies kit and does not install. All prices on our site include VAT. Trade account holders get trade prices, but the VAT rule is the same.

How do I keep the cost down if I am using a grant?

Plan the floor and the heat pump together, so the heat pump can run at a low flow temperature and the grant goes as far as possible.

1. Get a room-by-room heat loss. Your MCS installer needs it for the heat pump. Use the same figures to size the underfloor heating.
2. Design the floor for low temperatures. Closer pipe spacing and low-resistance floor finishes let the heat pump run cooler. See underfloor heating with a heat pump.
3. Ask for an itemised quote. It should show the heat pump, the BUS deduction, any ancillary work and the VAT on each part.
4. Price the floor kit separately. If you or a builder will lay the floor, compare buying the kit supply-only against the installer's price. Our UFH cost guide helps with the sums.
5. Check what the floor connects to. A heat pump usually feeds UFH through a non-mixing pump set, rather than a blending valve.

MaxHeatUFH does not install, but we pass installation enquiries to vetted approved installers. You can request an installation quote or email sales@maxheatufh.com.

Frequently asked questions

Can I get a grant for underfloor heating?

Not on its own. Grants such as the Boiler Upgrade Scheme pay towards the heat pump, which can then run underfloor heating. The floor heating is normally paid for by you.

Does the Boiler Upgrade Scheme pay for underfloor heating?

No. It is a fixed grant of £7500 for an air or ground source heat pump, or £9000 for eligible oil and LPG homes with no mains gas until March 2027. It does not increase if your installer also fits a new floor.

Is underfloor heating VAT free?

No. Underfloor heating is not an energy-saving material under HMRC VAT Notice 708/6, so it is normally charged at 20%. Only qualifying materials supplied and installed by an installer get 0%.

Can I claim 0% VAT if I buy a heat pump or thermostat myself?

No. HMRC says energy-saving materials supplied without installation are standard-rated, and a retailer's sale is always standard-rated. The 0% rate only applies when the installer supplies and installs them.

When does 0% VAT on heat pumps end?

The 0% rate on installing energy-saving materials runs until 31 March 2027. From 1 April 2027 these materials go to the reduced rate of 5%.

Does the Warm Homes Loan cover underfloor heating?

Underfloor heating is not named in the scheme rules. Ancillary costs such as radiators and pipework can be included with a heat pump, so ask your lender and installer to confirm in writing whether your UFH counts.

Can I use the Boiler Upgrade Scheme in a new build?

Most new builds still under construction are not eligible. Self-builds can qualify if they were built by you or the first owner and have never been owned by a business.

Sources: gov.uk Boiler Upgrade Scheme: what you can get, gov.uk Boiler Upgrade Scheme eligibility (archived July 2026), Ofgem BUS guidance for property owners, DESNZ Warm Homes Loan Scheme rules, September 2026, Designing Buildings: Warm Homes Plan details, MCS: Home Energy Scotland Grant and Loan, HMRC VAT Notice 708/6, APHC guide to VAT on energy-saving materials