Across the UK, the installation of heat pumps is also zero-rated for VAT until 31 March 2027, so a qualifying installation has no VAT added to the quoted price. Our guide prices are shown including VAT on that basis.
Homeowners in Tyne and Wear get a clear written quote showing the full price and any funding that applies. We confirm at the survey which funding route a home in Tyne and Wear is likely to qualify for. Installation dates in Tyne and Wear are fixed around any funding confirmation, so work does not start too early.
Who it suits
- Homes in England and Wales on oil or LPG, where a higher grant applies between set dates
- Homeowners in England and Wales replacing gas, oil, LPG or electric heating
- Landlords in England and Wales, who can apply for their let properties
- Anyone unsure which scheme applies and wanting it checked before committing
Grants and rules for heat pumps in England
Homes in Tyne and Wear can use the Boiler Upgrade Scheme, which takes £7,500 off the cost of an air source heat pump when it replaces fossil-fuel or electric heating. Replacing oil or LPG heating qualifies for £9,000 for installations from 21 July 2026 to 31 March 2027, and air-to-air systems for £2,500. The MCS-certified installer named in your quote applies for the grant and deducts it from the price.
There is no VAT on installing a heat pump anywhere in the UK until 31 March 2027. In England most houses can have an air source heat pump under permitted development, provided the unit meets the MCS noise and siting standards; the old 1 m boundary limit was removed on 29 May 2025. We flag listed buildings, flats and sensitive conservation-area positions at survey.
Grants and VAT across the UK
| Nation | Main support for heat pumps | Key points |
|---|---|---|
| England | Boiler Upgrade Scheme: £7,500 (£9,000 replacing oil or LPG, 21 July 2026 to 31 March 2027; £2,500 air-to-air) | MCS-certified installer applies; deducted from your quote |
| Wales | Boiler Upgrade Scheme: £7,500 (£9,000 replacing oil or LPG, 21 July 2026 to 31 March 2027) | Same scheme and rules as England |
| Scotland | Home Energy Scotland grant up to £7,500, plus up to £1,500 rural uplift; interest-free loan up to £7,500 | You apply; written offer needed before work starts |
| Northern Ireland | No dedicated heat pump grant for homeowners at present | Some heat pumps funded through NISEP in the past |
Heat pump installation is zero-rated for VAT across the UK, including Northern Ireland, until 31 March 2027. Scheme figures as at October 2026; check gov.uk, Ofgem or Home Energy Scotland before relying on them.
Towns we cover in Tyne and Wear
We cover 10 towns in Tyne and Wear for heat pump grants. Each links to local guide prices and the grant position for England.
| Town | Postcode district | Nearest town | Midwinter daylight |
|---|---|---|---|
| Newcastle upon Tyne | NE1 | Wallsend | 7 h 10 min |
| Sunderland | SR1 | Washington | 7 h 11 min |
| South Shields | NE33 | Tynemouth | 7 h 10 min |
| Washington | NE38 | Houghton-le-Spring | 7 h 11 min |
| Tynemouth | NE30 | South Shields | 7 h 10 min |
| Wallsend | NE28 | Jarrow | 7 h 10 min |
| Newburn | NE15 | Newcastle upon Tyne | 7 h 10 min |
| Whitley Bay | NE26 | Tynemouth | 7 h 09 min |
| Houghton-le-Spring | DH4 | Washington | 7 h 12 min |
| Jarrow | NE32 | Wallsend | 7 h 10 min |
Heat pump grants questions
Do I need an EPC for the Boiler Upgrade Scheme?
No longer. Since 28 April 2026, a valid EPC is not required for the Boiler Upgrade Scheme in England and Wales. The system must still meet the home's full heating and hot water needs, which the room-by-room heat loss calculation confirms. The other eligibility rules, such as owning the property, still apply.
How much is the heat pump grant?
It depends on where you live. In England and Wales, the Boiler Upgrade Scheme pays £7,500 towards an air-to-water heat pump, or £9,000 when replacing oil or LPG heating for installations from 21 July 2026 to 31 March 2027. In Scotland, Home Energy Scotland offers up to £7,500, plus a rural uplift and an optional loan. Northern Ireland has no dedicated grant at present.
Who applies for the Boiler Upgrade Scheme?
In England and Wales, the MCS-certified installer applies to Ofgem for the Boiler Upgrade Scheme on your behalf, and the grant is deducted from your quote. Ofgem then contacts you as the property owner to confirm the details. Your quote names the MCS-certified installer for your job, so you know who is making the application.