The Government increases support for households reliant on oil and LPG heating. The change targets rural homes facing volatile fuel prices. The UK Government has announced an increase in grants for households switching from fossil fuel heating systems to electric heat pumps. The uplift, which raises support to £9,000 under the Boiler Upgrade Scheme, is aimed at properties currently dependent on heating oil and liquefied petroleum gas.
The move comes as energy costs remain unstable, particularly for households outside the protection of the energy price cap. It forms part of a broader set of measures intended to reduce reliance on fossil fuels and stabilise energy bills over time.
Increased Support for Off-Grid Households
The revised grant level specifically targets homes that rely on heating oil or LPG, fuels commonly used in rural areas. According to government announcements published on 21 April 2026, the Boiler Upgrade Scheme previously offered £7,500 to support the installation of heat pumps, with the higher £9,000 figure now introduced for these households.
Officials state that the policy is designed to help both households and small businesses in England and Wales transition to electric heating systems. According to the Department for Energy Security and Net Zero, families using oil and LPG have been particularly exposed to price volatility, as these fuels are not covered by the Ofgem energy price cap.
Recent data cited in reporting shows that heating oil prices doubled between February and March, reaching record levels. This surge has been linked to wider geopolitical instability, including conflict in the Middle East, which has affected global fuel markets. The Government has also committed £53 million in targeted support for vulnerable consumers reliant on heating oil. According to statements accompanying the policy, this funding is intended to prioritise households most affected by rising costs.
Costs, Limitations and Broader Energy Reforms
Despite the increased grant, some concerns remain about affordability. According to the Energy Saving Trust, the average cost of installing an air source heat pump is around £11,000, though this can vary depending on property size, age, and required upgrades such as radiators.
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, noted that while the £9,000 grant is welcome, it may not fully cover installation costs in all cases. He stated that many affected households live in older properties that can require additional work before a heat pump can be installed.
He also highlighted structural challenges, explaining that around three million households rely on heating oil or LPG and lack protections available to gas users under the energy price cap. According to his assessment, these households are more likely to have lower incomes and face higher barriers to upgrading their homes.
Alongside the grant increase, the Government outlined wider reforms to reduce the influence of gas prices on electricity costs. Measures include expanding fixed-price contracts for renewable energy and increasing the Electricity Generator Levy from 45% to 55%. According to official statements, these steps are intended to shield consumers from fluctuations in global gas markets.
The Government also signalled further plans to support clean energy adoption, including funding for heat pump manufacturing and changes to planning rules to ease installation. These measures are presented as part of a longer-term strategy to reduce exposure to fossil fuel price shocks while encouraging a shift towards domestic energy sources.
