MAY 2026 | VOLUME 64 | ISSUE 4


Extra incentives for oil users to switch to renewables


Households that rely on heating oil or LPG will receive increased financial support as the government raises grants designed to help replace fossil fuel boilers with electric heat pumps.


Under changes to the Boiler Upgrade


Scheme (BUS),


households in England and Wales that use heating oil or LPG will now be able to access up to £9,000 towards installation costs, up from the previous £7,500, which remains available to gas users. It is hoped that this higher level of support will help accelerate the shift to low-carbon heating, particularly in rural areas where oil boilers are more common and alternatives have been slower to adopt. The decision comes amid sharp


rises in heating oil prices, which doubled between February and March following global market disruption linked to the Iran war. Unlike gas, heating oil is not covered by the Ofgem price cap, leaving around three million households more exposed to price volatility. The government has already


allocated £53 million in targeted assistance for heating oil users identified as most vulnerable to price shocks.


£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.” While accepting the need for


Ofgem regulates the energy


price cap that protects most gas- heated homes, but campaigners say those relying on oil and LPG remain at a structural disadvantage. End Fuel Poverty Coalition


co-ordinator Simon Francis says support for upgrading systems is welcome, though many households may still struggle with remaining installation costs: “Heating oil and LPG customers have been among the hardest hit by the current crisis. The three million households relying on these fuels sit outside the energy price cap and have no equivalent protection when global prices spike. These households are disproportionately in rural areas, have lower incomes, and live in older, harder-to-upgrade properties.


“Therefore, the expansion of this scheme must be accompanied by specialist local advice for households, stronger consumer protections during the works, and targeted additional support for those who cannot meet the shortfall.”


Falling short The government announcement has been welcomed by oil heating bodies OFTEC and UKIFDA, but they point out that the additional grant still falls well short of covering the cost of switching to a heat pump system. Paul Rose, CEO of OFTEC, says:


“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


decarbonisation, OFTEC has long argued for a more flexible approach that supports the adoption of other viable low carbon alternatives to heat pump systems. “We want the government to support a wider range of low carbon technologies to ensure households have a choice that suits their current circumstances,” Rose explains. “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.


“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.”


Energy Matters See page 15


Inside this issue phamnews.co.uk


Horror Show See page 12


Training Update See page 16


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