On Tuesday 21st April 2026, an announcement from Ed Miliband, Energy Secretary, laid out the action plan for reducing UK homeowners’ reliance on the global fossil fuel market. This market has seen a few shock waves in the past months, due to the crisis in the Middle East and other geo-political circumstances.
“As we face the second fossil fuel shock in less than 5 years, the lesson for our country is clear: The era of fossil fuel security is over, and the era of clean energy security must come of age. That’s why we’re doubling down on clean power, to give our country energy security and bring down bills for good.” Ed Miliband, Energy Secretary
Read more about the announcement here via UK Gov.
Many homeowners in the UK, particularly those in rural areas, rely on and are vulnerable to oil and LPG prices – with some experiencing cost barriers that prevent switching to renewable heating systems, like electric heat pumps.
So, what’s the plan?
The Boiler Upgrade Scheme, a long-standing grant offered by the UK government, will rise from £7,500 to £9,000 for homeowners upgrading from oil or LPG heating systems to air source heat pumps. The increase is set to come into effect over the summer and makes upgrades more accessible to more households.
Switching to a heat pump may involve additional upfront costs beyond the grant and may not be suitable for all properties. Outcomes will depend on factors such as insulation, property type, and individual usage.
What if I’m a homeowner on oil or LPG heating?
If you’ve used oil or LPG heating to heat your home, there are a few things you can do to explore alternative options.
This information is for general guidance only. Customers should conduct their own research and take advice from multiple sources to make informed decisions.
- Look up your local retrofit advice organisation – They can give you an idea of how changing to a heat pump could look for you, perhaps even an estimate on carbon-saving and cost. Many councils provide energy advice, or you can contact national charities like the Centre for Sustainable Energy for a starting point.
- Research some local heat pump providers – Heat Geek have a map of installers across the UK they have trained. Also – Octopus Energy have a free heat pump quote tool you can use for some initial cost indications.
- Get a retrofit assessment on your home – to switch to a heat pump system, it’s worth looking at the energy efficiency of your whole home, first. This can include the efficiency of your insulation and how much heat loss you experience through your windows and doors. We recommend that you carry out an independent retrofit assessment to find out which works are suitable for your home and budget. For example, homeowners in the West of England can access free home energy advice from Retrofit West CIC.
- Keep an open mind – whilst switching from oil or gas might be your goal, you may need to make other changes to your home first in order to get the most efficient system you can.
Conclusion
Switching to a heat pump just got a bit easier for those on oil or LPG, particularly in rural areas. With this rise in grant money, it is likely to incentivise homeowners even more to consider electric heat pumps – a timely development in the UK’s energy journey which may provide benefits for some households.
Find out more about bulk-buying fuel here.
