Oil and LPG Homes: Grants and Cheaper Heating

If your home is off mains gas and heated by oil or LPG in England or Wales, you can get £9,000 off an air source or ground source heat pump through the Boiler Upgrade Scheme until March 2027. Before or alongside that, insulating the loft and walls is the cheapest way to cut how much fuel you buy, and some households can get that funded too.

This guide covers the grants open on 2 October 2026, the help available with heating oil bills, and the order in which to look at your options. We are not a government body and cannot tell you whether you qualify; every scheme below links to its official source.

Why are oil and LPG homes treated differently?

Because the energy price cap does not protect them. Ofgem says prices for heating oil and LPG "are not covered by the price cap but are set by fuel markets and can change quickly", and that in Great Britain heating oil falls under the Competition and Markets Authority rather than Ofgem. Ofgem adds that what you pay can depend on where you live, the season and when you order a delivery.

That exposure is why the government raised the heat pump grant for these homes in June 2026, saying the conflict in the Middle East had hit households on heating oil especially hard.

What grants can oil and LPG homes get?

Boiler Upgrade Scheme (England and Wales)

£9,000 towards an air source or ground source heat pump if the property is not connected to mains gas and is heated by oil or LPG. That is the standard £7,500 plus £1,500, available from 21 July 2026 until March 2027.
£5,000 towards a biomass boiler, for properties off the gas grid in a rural location, with a boiler that has an emissions certificate.
£2,500 towards an air-to-air heat pump.

Source: GOV.UK, what you can get and announcement of 26 June 2026, checked 2 October 2026.

GOV.UK's eligibility rules include no income test. You must own the property and be replacing a fossil fuel system such as oil or LPG. You get quotes from MCS-certified installers, and the installer applies to Ofgem for you; the grant comes off your invoice. GOV.UK says the heat pump must be installed and commissioned within 120 days of the application. Social housing and most new builds are not eligible.

Take-up is rising: GOV.UK reported a record 8,150 applications in July 2026, with 38% of grants going to homes off the gas grid. For the full rules, see our heat pump funding page and air source heat pump guide. Energy Crisis UK also has a plain guide to heat pump running costs and the £7,500 grant.

In Scotland the Boiler Upgrade Scheme does not apply; the Energy Saving Trust points people to Home Energy Scotland for heat pump and insulation funding.

Is there help with heating oil bills now?

Some, for low-income households. In March 2026 the government wrote to councils about a heating oil top-up to the Crisis and Resilience Fund, the local support scheme that started on 1 April 2026. Councils decide who qualifies, so search your council's website for "Crisis and Resilience Fund" or contact them directly. It is not available to every oil-heated home. Source: GOV.UK joint letter to local authorities.

Should I insulate before changing the heating?

Usually, yes. Every unit of heat that stays in is fuel you don't buy, whatever you heat with, and the Energy Saving Trust advises looking at realistic insulation improvements before or alongside a heat pump, because the system is sized to your home's heat loss. Its typical figures for Great Britain:

Loft insulation to 270mm: about £750 from nothing, or £600 to top up from 120mm. An uninsulated home loses around 25% of its heat through the roof.
Cavity wall insulation: around £2,200, likely paid back in five years or less. About a third of an uninsulated home's heat goes through the walls.
Draught-proofing windows and doors professionally: around £250 for a whole house, saving around £55 a year.

Home Insulation Advice explains what a loft top-up involves and what it typically costs, and our guide to insulating before a heat pump covers the checks to make first.

Can insulation be funded?

Warm Homes: Local Grant (England): councils can fund wall, loft and underfloor insulation, air source heat pumps and solar panels for privately owned homes rated EPC D to G, where household income is usually £36,000 or less, or you get certain benefits or live in an eligible postcode. Check on GOV.UK.
ECO4 runs until 31 December 2026. GOV.UK lists qualifying benefits such as Universal Credit and Pension Guarantee Credit; owner-occupied homes need an EPC of D to G, rented homes E to G. Work may be fully or partly funded.
The Great British Insulation Scheme ended on 31 March 2026.
VAT: installing insulation and heat pumps in a home is zero-rated in Great Britain until 31 March 2027, then 5%.

Our grant finder gives a quick guide to which of these may apply to you.

What order makes sense?

If you are struggling with the cost of oil now, ask your council about its Crisis and Resilience Fund.
Check whether Warm Homes: Local Grant or ECO4 could fund insulation.
Top up the loft and fill suitable cavity walls; draught-proof.
Get heat pump quotes from MCS-certified installers before March 2027 if you want the £9,000 rate, and ask how the system has been sized for your home.

Frequently asked questions

How much is the heat pump grant for oil and LPG homes?

£9,000 towards an air source or ground source heat pump in England and Wales, for properties not on mains gas that are heated by oil or LPG. The extra £1,500 runs until March 2027; the standard grant is £7,500.

Is heating oil covered by the energy price cap?

No. Ofgem says heating oil and LPG prices are not covered by the price cap and are set by fuel markets, so they can change quickly.

Is there an income limit for the Boiler Upgrade Scheme?

GOV.UK's eligibility rules include no income test. You need to own the property and be replacing a fossil fuel heating system, and an MCS-certified installer applies for you. Social housing and most new builds are not eligible.

Can I get help paying for heating oil?

Low-income households may get help through their council's Crisis and Resilience Fund, which the government topped up for heating oil support in March 2026. Each council sets its own criteria.

Does the £9,000 grant apply in Scotland or Northern Ireland?

No. The Boiler Upgrade Scheme covers England and Wales. In Scotland, Home Energy Scotland runs its own funding for heat pumps and insulation.

Sources, checked 2 October 2026: GOV.UK, Boiler Upgrade Scheme (eligibility, how to apply, August 2026 figures); Ofgem, energy costs outside the price cap; GOV.UK, Energy Company Obligation and ECO4 extension; Energy Saving Trust guides to loft, cavity wall and draught-proofing.

UK Energy Partnership is run by Better Home Hub Ltd. We are not a government body and cannot decide who gets funding.