The Department for Energy Security and Net Zero announced on 23 October 2023 that the ban on installing oil and liquified petroleum gas boilers, and new coal heating, for off-gas-grid homes will be delayed to 2035, instead of phasing them out from 20261. The same announcement raised the Boiler Upgrade Scheme grant for air source heat pumps from £5,000 to £7,500, a 50 per cent increase, and extended the scheme by three years to 20281.
The government said some off-gas-grid homes are not suitable for heat pumps, and that the delay ensures homeowners are not having to spend around £10,000 to £15,000 on upgrading their homes in just three years' time1. Homes may not be suitable if they need expensive energy efficiency upgrades, particularly solid wall insulation costing £10,000 to £15,000, or a significantly upgraded electricity connection that may not be feasible1. The government also set an exemption to the phase out of fossil fuel boilers, including gas, in 2035, so that households will not have to switch to a heat pump if their home is not suitable1.
Ground source heat pump grants rose from £6,000 to £7,500, and households can still access £5,000 grants for biomass boilers1. The Boiler Upgrade Scheme, already a £450 million funding pot, will receive an allocation from the £6 billion allocated for energy efficiency and clean heat over 2025 to 2028, so the future budget is not fixed1. Grants can be used alongside support from the £1 billion Great British Insulation Scheme for more than 300,000 homes, including the most vulnerable families in England, Wales and Scotland1. The government also made £10 million available through the Heat Pump Ready programme and launched a 'Welcome Home to Energy Efficiency' campaign1.
"To prevent hardworking people being burdened with high costs, the government is delaying the ban on installing oil and liquified petroleum gas boilers, and new coal heating, for off-gas-grid homes to 2035, instead of phasing them out from 2026."
Nesta, an independent research foundation, wrote on 6 November 2023 that rural areas already lead on heat pump uptake, and that of roughly 250,000 heat pumps recorded in MCS data, four out of five are in an off-grid home2. Its league table of uptake is dominated by Orkney, the Outer Hebrides, Cornwall and East Anglia2. In its survey of heat pump users, 83 per cent of those whose previous system was oil were generally satisfied, and more satisfied than those who switched from mains gas2. Nesta said heat pumps can work in any type of building as long as they are properly sized and installed, and that some high heat demand homes may require upgrades such as new radiators or pipe work2. It said delaying the phase out will create uncertainty for businesses that need confidence to invest2.
| Measure | Before | After |
|---|---|---|
| Air source heat pump grant | £5,000 | £7,500 |
| Ground source heat pump grant | £6,000 | £7,500 |
| Biomass boiler grant | £5,000 | £5,000 |
| Off-gas-grid fossil fuel boiler ban | 2026 | 2035 |
Why it matters for households
For a home off the gas grid, the delay changes the timetable rather than the eventual direction. Households using oil or LPG now have until 2035 before the rules on installing new fossil fuel boilers change, and the government has said homes unsuitable for a heat pump will not have to switch1. The higher grant reduces the upfront cost of a heat pump, though the government's own figures put the cost of making some homes ready at £10,000 to £15,0001. Nesta's figures suggest off-grid homes are already the most common setting for heat pumps in Britain, and that oil-to-heat-pump switchers report high satisfaction2. What the delay means for running costs, fuel prices or the availability of off-grid fuels beyond 2035 has not been reported.
What happens next
The government said it will explore alternative approaches to decarbonising off-gas-grid homes via a consultation next year, which will make clear it does not propose that any household installs a low carbon option not suitable for its home1. The Boiler Upgrade Scheme now runs to 20281.
Sources2 cited
- Heat pump grants increased by 50% - GOV.UK, gov.uk
- Do heat pumps work in rural areas? | Nesta, nesta.org.uk