In September 2023 the Prime Minister announced a number of changes to net zero policy, including that the phase out date for installing new oil and LPG boilers and new coal heating for off-grid homes would be put back to 20351. The 2026 deadline for the sale of new oil, LPG and new coal heating had been set following a 2021 consultation2. The change was announced alongside other revisions to climate policy, including a five-year delay to the 2030 ban on the sale of new petrol and diesel cars2.
The announcement was made on 20 September 20233. The Prime Minister said the change would ensure homeowners did not have to pay around £10,000 to £15,000 to upgrade their homes in just three years' time, and that only those replacing their oil boilers would have needed to install a new system, with government support available to do so2. The ban on oil boilers was set to affect around 1.7 million homes in predominantly rural areas2. Other bans remained in place, including the 2025 ban on fossil fuel boilers in new homes and the wider 2035 ban, though exemptions were announced for households expected to struggle most with the switch, covering about a fifth of homes2.
The Boiler Upgrade Scheme grant was increased at the same time, from £5,000 for an air-to-water heat pump or £6,000 for a ground-source heat pump to £7,500 for either technology, with the increased grants available to all applicants from October 20233. The scheme is open to homes and small non-domestic buildings in England and Wales3. Worcester Bosch put the average price of a heat pump installation at £13,000, against around £2,500 for a boiler replacement, leaving households paying around £5,000 to £6,000 for a heat pump after the grant3.
"The government has now extended this timeline to 2035 where a ban on gas-fired boiler replacements will also be expected."
Scotland set out separate proposals. Its November 2023 consultation on a Heat in Buildings Bill included a proposal to delay the ban on installing oil and LPG boilers, and new coal heating, for off-gas-grid homes from 2026 to 20354. The consultation also proposed prohibiting the use of polluting heating from 2045, requiring those purchasing a property to comply with the prohibition within a specified period after completion of the sale, which the Scottish Government thought between two and five years likely to be appropriate, and requiring owner-occupied homes to meet a minimum energy efficiency standard by the end of 2033 and landlords by the end of 20285. The consultation closed on 8 March 2024, and the Scottish Government said it intended to pass the Heat in Buildings Bill by the end of that term of the Scottish Parliament, in May 20264.
Why it matters for households
For a household off the gas grid, the change means a new oil or LPG boiler can still be installed for longer than previously planned. The phase out applies to installations of new systems, not to existing boilers, and the government said there was no plan to prevent the purchase of a new boiler, including in 20353. Homes using heating oil or LPG are not covered by the price regulation that applies to mains gas and electricity, so costs can vary day to day and between areas1. Households using alternative fuels are more likely than others to be classified as being in fuel poverty, and more likely to experience deeper levels of it, partly because properties off the gas grid tend to have lower energy efficiency1. An estimated 4.8 million households across Great Britain were not connected to the gas grid in 2024, 16.0% of domestic properties1.
| Nation or region | Share of households off the gas grid, 2024 |
|---|---|
| Inner London | 26.6% |
| South West | 24.2% |
| East | 20.3% |
| Scotland | 19.5% |
| Wales | 19.5% |
| South East | 15.6% |
| Outer London | 14.9% |
| West Midlands | 13.4% |
| East Midlands | 11.9% |
| Yorkshire and The Humber | 10.8% |
| North West | 10.4% |
| North East | 7.5% |
Source:1
What happens next
The Scottish consultation closed on 8 March 2024, with the Scottish Government intending to pass the Heat in Buildings Bill by May 20264. In January 2026 the Warm Homes Plan included discussion of homes off the gas grid, focused on grants under the Boiler Upgrade Scheme1. The Department for Communities announced a Warm Healthy Homes Strategy 2026 to 2036 intended to help address fuel poverty, and the government announced £50 million in funding targeted towards low income homes heated with heating oil1. A scheme has been announced to cut energy bills in Northern Ireland by £30 a year1.
Sources5 cited
- [](https://researchbriefings.files.parliament.uk/documents/CBP-9838/CBP-9838.pdf), researchbriefings.files.parliament.uk
- In-depth Q&A: What do Rishi Sunak’s U-turns mean for UK climate policy? - Carbon Brief, carbonbrief.org
- Government Statement | Worcester Bosch, worcester-bosch.co.uk
- Delivering Net Zero for Scotland’s Buildings - A Consultation on proposals for a Heat in Buildings Bill, gov.scot
- Delivering Net Zero for Scotland’s Buildings - A Consultation on proposals for a Heat in Buildings Bill, gov.scot