PHAM NEWS | OCTOBER 2025 20 Gas & OilBoilers


What’s in store for off - grid homes?


The recent government reshuffl e, kicked off by Angela Rayner’s resignation, could mark a signifi cant turning point for the UK’s energy policy and the transition to low carbon heating, argues OFTEC’s Malcolm Farrow.


Miatta Fahnbulleh, the minister in charge of the landmark Warm Homes Plan (at the time of writing, expected to be published in October), has been moved from her post. But this doesn’t just have to be a change in personnel. It’s an opportunity for a strategic rethink. The new ministers have the


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chance to learn from recent political missteps and chart a more pragmatic course towards net zero, particularly when it comes to harder to treat off -grid homes. The Labour government is now under signifi cant pressure from opposition parties, the public and its own backbench MPs to show it is delivering meaningful change for the country. Renewable liquid heating fuels present a unique opportunity to make a real and positive diff erence. The government was


elected on a manifesto to transition the UK onto low carbon heating, and polls show this is still supported by the public, but it’s how we get there that counts. How disruptive is it going to be and, most crucially, how much is it going to cost taxpayers and ordinary households? Driving ahead with electrifi cation is important, but ignoring renewable liquid fuels could create more problems than it solves.


Financial reality As the November Budget approaches, the government fi nds itself in a very diffi cult fi nancial position, grappling with high national debt and slow economic growth. There is widespread speculation the Chancellor will need to fi nd


Malcolm Farrow Head of public affairs at OFTEC


hilst Ed Miliband remains the Secretary of State,


signifi cant revenue through tax rises, cut public spending, or a combination of both. This places intense scrutiny on every fi nancial commitment. Whilst the government has


There is already a well-established industry of


technicians and fuel distributors to roll out


renewable liquid fuels, and it would lead to an


immediate drop in emissions


recommitted the £13.2bn funding for the Warm Homes Plan, it has been clear for a long time that continuing with a strategy focused exclusively on heat pumps would require far greater investment to meet the ever growing need for subsidies. This sum would be diffi cult for a cash-strapped Treasury to deliver without placing further burden on taxpayers. The numbers from the


government’s own Boiler Upgrade Scheme (BUS) refl ect this challenge. The scheme provides a grant for households of £7,500 to support with the upfront cost of installing a heat pump. However, the average cost of a heat pump installation cited through applications has been £13,433. This leaves a £6,000 shortfall for households to fi ll themselves at a time when disposable income is low and many people are already struggling. Not to mention this doesn’t include the cost of any additional energy effi ciency improvements, which are often needed for the heat pump to work eff ectively in oil heated homes, which tend to be older and poorly insulated. We would argue that it’s only


wealthier households who can aff ord this additional cost and therefore claim the BUS grant. The government is therefore essentially subsidising the wealthiest households, rather than the poorest. The numbers don’t lie, but this isn’t just a hypothetical issue. The


fi nancial barriers are refl ected in the real world with the slow uptake of heat pumps in rural off -grid areas, which is a clear sign that the current approach is not working for everyone.


Fairness and choice In the election campaign, Labour committed to not forcing people to rip out their boilers. This is a crucial promise because off -grid households are all diff erent and unique. A one- size-fi ts-all, electrifi cation- only approach fails to recognise this diversity. Households should have the


choice of how they transition to a net zero heating solution based on their own specifi c situation and the unique characteristics of their home. This demand for choice is supported by the public. Surveys of oil households have shown that over 95% support having the option to transition using renewable liquid fuels. The government would


be wise to heed this public sentiment. The previous government’s plans to phase out oil heating by 2026 were rolled back due to signifi cant backlash from ordinary constituents and their MPs. Having already faced public frustration over the recent changes to the Winter Fuel Payment, Labour will not want to repeat history and walk into another backlash on its fl agship net zero policy.


Renewable liquid fuels That’s where renewable liquid fuels, such as Hydrotreated Vegetable Oil (HVO), off er a unique and immediate opportunity for the government to deliver on its net


zero commitments without the fi nancial burden or consumer disruption of a heat pump-fi rst strategy. The main advantage is that the switch from kerosene heating to renewable liquid fuel is a ‘drop-in’ solution. At a 20% blend the fuel works in the existing system with no changes to the boiler required. There’s already a well


established industry of technicians and fuel distributors to roll out the fuel and it would lead to an immediate drop in emissions. The alternative is leaving these households on kerosene if they can’t aff ord the heat pump cost. Whilst heat pumps are an


excellent solution for the right property, the reality is that many older, poorly insulated, or harder-to-treat homes are simply not ideally suited to them. Supporting renewable fuels is a win for the government as it makes a signifi cant carbon reduction impact on these homes, and acts as a stepping stone to greater carbon savings via higher blend strengths, hybrid systems or eventual adoption of a heat pump. For the hardest to treat


homes, it enables progress to be made without the signifi cant upfront costs, extensive home retrofi tting, and disruption that can be associated with a heat pump installation. It’s clear renewable liquid


fuels provide a pragmatic and aff ordable choice for these households, ensuring a faster, fairer, and more aff ordable transition. We are continuing to urge the government to listen to the evidence. ◼ phamnews.co.uk/1025/38


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