Households in England and Wales that rely on heating oil or LPG can now claim up to £9,000 to replace their boilers with electric heat pumps, following a government increase to the Boiler Upgrade Scheme. The grant was previously £7,500 for all homes, but has been raised specifically for those using oil or LPG, which are not covered by the Ofgem energy price cap.
The move aims to help households in rural areas, where heating oil is common, to electrify their heating and stabilise energy bills. Prices for heating oil doubled to record highs between February and March this year, partly due to the aftermath of the Iran war, leaving many vulnerable families facing soaring costs.
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, welcomed the increase but warned that the grant may not cover the full cost for some households. Installing an air source heat pump typically costs around £11,000, according to the Energy Saving Trust, and older properties may require additional upgrades such as new radiators.
Francis called for specialist local advice, stronger consumer protections, and targeted support for those unable to afford the remaining costs. “The measure of success is not how many grants are issued, but whether the households most exposed to fossil fuel price shocks are genuinely better off as a result,” he said.
