As part of a raft of measures, on 21st April 2026, DESNZ announced an increase in Boiler Upgrade Scheme funding for properties heated by oil and LPG in England and Wales: Decisive action to break influence of gas on electricity prices - GOV.UK. The BUS grant will now be £9,000 – in line with the funding available in Scotland – and the change forms part of a raft of measures within the government’s broader electrification strategy. Paul Rose, CEO of OFTEC, and Ken Cronin, CEO, UKIFDA, commented:
"We welcome the government’s recognition that off-grid households using heating oil face unique challenges and higher costs to transition to heat pumps. Increasing the Boiler Upgrade Scheme grant to £9,000 is a positive step.
“However, the fact remains that, even with this additional funding, oil heated households still face a significant financial shortfall. The government’s own estimates put the switching cost at nearly £20,000. Most oil heated households simply do not have the disposable income available. Unfortunately, it will therefore often be wealthier households who will most benefit from this increase in grant funding.
“That’s not to say these households should remain on kerosene. Far from it, we want the government to support a wider range of low carbon technologies to ensure households have a choice that suits their current circumstances. Importantly, we need options that do not include the high upfront costs associated with heat pumps.
“Renewable liquid fuels, such as Hydrotreated Vegetable Oil (HVO), therefore need to be part of the mix. There is a clear public appetite for this approach, demonstrated by 16,000 oil heated households responding to the government’s recent consultation in support of these fuels. We now need to see a formal government response which incorporates these fuels into the wider decarbonisation strategy.
“These decisions matter. Building Regulations in England prohibit installing a heating appliance with the potential to produce more CO2 than the appliance being replaced. What this means is that if, for any reason, a heat pump turns out not to be suitable, households will not have an option to return to an oil boiler. When households are trying to play their part in cutting their carbon emissions, we must ensure any changes they make to their home heating leads to a positive outcome.”
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