The heating market is being squeezed from two directions at once: grants pulling homeowners towards heat pumps, and an obligation on manufacturers pushing them. For gas engineers, understanding both is now part of planning a career, not just a job.
The Boiler Upgrade Scheme (the pull)
The Boiler Upgrade Scheme offers a grant of £7,500 towards a qualifying air source or ground source heat pump, deducted from the customer's invoice. The government has also announced a temporary uplift to £9,000 for eligible oil and LPG-heated homes from 21 July 2026. Funding also covers air-to-air heat pumps and biomass in some cases, and the scheme's budget for 2025/26 is its largest annual allocation to date.
The Clean Heat Market Mechanism (the push)
Since April 2025, major boiler manufacturers have been subject to the Clean Heat Market Mechanism. It requires them to match a rising share of their boiler sales with MCS-certified heat pump installations: 6% in the first year, rising to 8% from April 2026. Manufacturers that fall short face a penalty per missing credit. The effect filters down to engineers through boiler pricing, product availability and a clear manufacturer incentive to back heat pump installation.
This week's red extreme heat warning, with temperatures near 38°C, is a reminder that heat pumps are not a winter-only technology. Air-to-air systems and many air source units can provide active cooling, and demand for cooling in UK homes is only going one way.
What it means for the gas trade
None of this makes gas work disappear overnight. Existing boilers are not being ripped out, and servicing, repairs and gas safety work continue. A landlord's annual CP12 gas safety record is still a legal requirement every 12 months. But the long-term direction is clear, and engineers who add heat pump competence early are positioning themselves for where the grants and the obligation are steering the market. An MCS heat pump certificate is the document that unlocks the grant for the customer. For the bigger picture on low-carbon heat, see our Future Homes Standard guide.
For the mechanism's detail, see the government's Clean Heat Market Mechanism revisions for 2026 to 2027.
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Published 2026-06-24. This article is for general guidance only and does not constitute legal or professional advice. Always refer to the relevant standards and consult qualified professionals for definitive requirements.