The Boiler Upgrade Scheme grant has been increased by 20%, from £7,500 to £9,000, for households in England and Wales currently using heating oil. The uplift, confirmed by the Labour government, is designed to help rural households transition from heating oil to heat pumps, shielding them from volatile fossil fuel prices.
Minister for Energy Consumers Martin McCluskey said the government is determined to bring down energy bills, noting that the war in the Middle East has hit households on heating oil especially hard. He confirmed that over £50 million in support has already been provided for vulnerable customers on heating oil.
Support for rural households
Thousands of households across England and Wales are expected to benefit from the increased grant. The funding boost, previously set at £7,000 in some reports, now stands at £9,000 under the Boiler Upgrade Scheme, which is administered by the government to encourage the adoption of clean heating technologies.
McCluskey added: "Now, the Boiler Upgrade Scheme will help thousands of families across England and Wales switch to clean heat to protect them from volatile fossil fuels."
Industry reaction to the grant increase
Charlotte Lee, CEO of the Heat Pump Association UK, said the £1,500 uplift will make the transition significantly more affordable for the thousands of oil-heated homes. She highlighted that many of these households have faced considerable price uncertainty in recent months, without the protection of the energy price cap.
Lee said the £9,000 grant will help shield families from volatile fossil fuel costs by using home-grown electricity in the years ahead.
Quality standards and consumer protection
Ian Rippin, CEO at MCS, welcomed the uplift as an important step in making heat pumps more accessible to rural households. MCS, the UK's quality mark for small-scale renewables like heat pumps, sets standards for certified installers and the products they use, providing protections for consumers investing in the technology.
Rippin said: "This uplift is an important step in making heat pumps more accessible to rural households, allowing them to see the benefits the technology can offer."
Impact on fuel poverty and winter heating
Matt Copeland, Head of Policy and Public Affairs at National Energy Action, described the move as a positive step for households relying on heating oil, who have recently faced the highest and most volatile energy costs. He warned that many families will be expecting to ration their heating in the coming winter, living in homes they cannot afford to keep warm, not through choice but constraint.
Copeland said supporting the shift to cleaner heating in these homes can help deliver greater stability and lower bills.
