Is Oil Heating Being Phased Out in the UK?
If you heat your home with oil, you have probably heard concerns about future bans and phase-outs. The news can feel confusing—some headlines suggest an outright ban, while others describe a gradual transition over many years.
The short answer is yes, oil heating is being phased out in the UK, but no one will force you to rip out a working system. The government’s approach centres on reducing new installations over time, with key dates in 2026 and 2035, and plenty of alternative options and financial support available to help with the transition.
Our engineers work across Somerset every day, so we understand the concerns rural homeowners face. In this guide, we explain what is actually happening, when it affects you, and what your practical options are—without the scare tactics or jargon.
The Current Situation: What Is Actually Happening
Around 1.5 to 1.7 million UK homes rely on oil-fired heating, mostly in rural areas where mains gas is unavailable. These properties account for roughly 6% of all UK households, and for many, oil has been the most reliable and affordable heating option for decades.
The UK government has committed to reaching net-zero carbon emissions by 2050. Home heating accounts for approximately 20% of the UK’s carbon emissions, so changing how we heat our homes is a central part of that plan. Oil boilers emit between four and six tonnes of CO₂ each year, which is why they are included in the wider effort to decarbonise domestic heating.
The government’s strategy involves phasing out fossil fuel heating systems gradually, starting with new-build properties and moving towards a significant reduction in oil boiler installations by 2035. The aim is not to ban oil heating overnight but to encourage a transition to lower-carbon alternatives over the next decade.
Key Dates and Timelines
2025: New-build homes From 2025, gas and oil boilers will no longer be installed in newly built homes. This is part of the Future Homes Standard and applies only to properties currently being constructed. Existing homes are not affected by this date.
2026: Off-grid properties From 2026, homeowners in off-grid areas who need to replace their oil boiler will no longer be able to install a new conventional oil boiler. Instead, they will need to choose a low-carbon alternative, such as a heat pump, biomass boiler, or a system running on renewable liquid fuels like Hydrotreated Vegetable Oil (HVO).
2035: Wider phase-out The government’s stated ambition is to phase out around 80% of oil boiler installations by 2035. This does not mean existing boilers will be removed—it means that when your boiler reaches the end of its life and needs replacing, you will need to consider a low-carbon alternative.
It is important to note that the 2035 target is an ambition, not yet a legal ban. The government has confirmed that no one will be forced to remove a working oil boiler from their home, and there will be no fines for homeowners who still have oil heating after 2035.
What This Means for You as a Homeowner
If you currently have an oil boiler, the phase-out does not require immediate action. You can continue using your existing system for as long as it works safely and efficiently. However, planning ahead makes sense, particularly if your boiler is more than 10 to 15 years old.
If Your Boiler Is Working Well
Keep it maintained. Regular servicing ensures your boiler runs efficiently, reduces fuel costs, and extends its lifespan. A well-maintained oil boiler can last 15 to 20 years, giving you time to plan for an eventual replacement.
Annual servicing by an OFTEC registered engineer also ensures your system meets current safety and environmental standards. Learn more about what happens during an oil boiler service to understand what is checked and why it matters.
If Your Boiler Needs Replacing Soon
If your boiler is nearing the end of its life, you have several options depending on your property type, budget, and location. For off-grid homes, the 2026 timeline means you will need to choose a low-carbon system if you need a replacement from that point onwards.
If you are unsure how long your current oil boiler will last before replacement, our team can assess its condition and help you plan accordingly.
If You Are a Landlord
Landlords with oil-heated rental properties face the same timelines as homeowners. You can continue operating existing systems, but new installations from 2026 onwards will need to meet low-carbon standards.
For landlords managing multiple properties, early planning helps spread costs and minimise disruption. You can also explore grant funding to offset installation expenses. If you manage properties with both gas and oil heating, remember that landlords need gas safety certificates annually for gas systems.
Your Heating Options: Alternatives to Oil
The good news is that several proven alternatives to traditional oil heating are available, each suited to different property types, budgets, and circumstances. The right choice depends on your home’s insulation, available space, and how much you can invest upfront.
Heat Pumps
Heat pumps are the government’s preferred replacement for oil boilers in most homes. They work by extracting heat from the air or ground outside your property, then using electricity to amplify that heat and transfer it indoors.
Air source heat pumps are the most common type. They sit outside your property (similar in size to an air conditioning unit) and connect to your existing radiators or underfloor heating. They are generally easier and cheaper to install than ground source systems.
Ground source heat pumps extract heat from underground via buried pipes. They require significant outdoor space for installation but offer excellent long-term efficiency and lower running costs. Installation costs are higher because of the excavation work required.
Pros:
- Very low carbon emissions when powered by renewable electricity
- Eligible for government grants (currently £7,500 under the Boiler Upgrade Scheme)
- Lower running costs than oil in many cases
- Long lifespan (15 to 20 years or more)
Cons:
- High upfront cost (typically £7,000 to £18,000 after grants)
- May require improvements to insulation and larger radiators for optimal performance
- Works best in well-insulated properties
- Electricity prices affect running costs
For more context on how different heating systems compare, see our guide on how oil heating compares to gas and electric.
HVO (Hydrotreated Vegetable Oil)
HVO is a renewable liquid fuel that offers an exciting alternative for homeowners who want to keep their existing oil boiler. It is produced from waste cooking oils, vegetable oils, and certified animal fats through a hydrogenation process, and it can replace kerosene in most modern oil boilers with minimal modifications.
HVO is often described as a “drop-in” fuel because it works in existing oil heating systems without requiring a complete replacement. Most oil boilers manufactured after 2018 can be converted to run on HVO with a simple upgrade kit, costing around £500. If your boiler is older or needs replacing anyway, a new HVO-compatible boiler costs approximately £3,000.
Pros:
- Up to 88% lower carbon emissions compared to conventional heating oil
- Works with existing oil boiler infrastructure
- Much lower upfront cost than heat pumps
- No need to upgrade insulation or radiators
- Stores safely and has no odour
Cons:
- HVO is currently more expensive than kerosene per litre
- Limited availability in some areas (though this is improving)
- Still reliant on fuel deliveries and tank storage
- Not yet widely supported by government grants
HVO is particularly well-suited to older properties, listed buildings, or homes where heat pumps would require extensive and expensive modifications. It offers a practical pathway to lower carbon emissions without the disruption of a complete heating system overhaul.
Biomass Boilers
Biomass boilers burn wood pellets, chips, or logs instead of oil or gas. They are considered carbon-neutral because the CO₂ released when burning wood is roughly equivalent to the CO₂ absorbed during the tree’s growth.
Pros:
- Eligible for £5,000 grant under the Boiler Upgrade Scheme
- Can achieve very low carbon emissions
- Fuel can be sourced locally and is often cheaper than oil
- Works with existing radiators and hot water systems
Cons:
- Requires significant storage space for fuel (wood pellets or logs)
- Regular maintenance needed (ash removal, cleaning)
- Not suitable for all property types
- Installation costs similar to heat pumps (£10,000 to £20,000)
Hybrid Systems
Hybrid systems combine a heat pump with a conventional boiler (gas or oil). The heat pump handles most of the heating demand, while the boiler provides backup during very cold weather or when hot water demand is high.
Hybrid systems can be a good compromise for properties that are not fully suited to heat pumps alone. However, they are not currently eligible for the Boiler Upgrade Scheme grant.
Grants and Financial Support
One of the biggest concerns about moving away from oil heating is cost. The government recognises this and has introduced several grant schemes to help homeowners afford low-carbon heating systems.
Boiler Upgrade Scheme (BUS)
The Boiler Upgrade Scheme is the main grant programme for homeowners in England and Wales. It provides upfront capital grants to reduce the cost of installing low-carbon heating.
Grant amounts (as of early 2026):
- £7,500 for air source or ground source heat pumps
- £5,000 for biomass boilers
- £2,500 for air-to-air heat pumps (available from 2026)
- £2,500 for heat batteries (available from 2026)
The scheme is administered by Ofgem and is available until at least April 2028, with a budget of £295 million for 2025-26. The government has announced plans to continue funding beyond 2028 as part of the wider Warm Homes Plan.
Eligibility:
- You must own the property (landlords and self-build properties are eligible)
- You must be replacing a fossil fuel heating system
- The installation must be carried out by an MCS-certified installer
- Your property must have a valid Energy Performance Certificate (EPC)
Previously, you needed to complete any outstanding loft or cavity wall insulation recommendations on your EPC before qualifying for the grant. This requirement was removed in May 2024, although improving insulation is still recommended to maximise efficiency.
Your installer applies for the grant on your behalf and deducts the grant amount from your quote, so you never handle the paperwork or wait for reimbursement.
Warm Homes Plan
The Warm Homes Plan is a broader government initiative with a budget of £13.2 billion designed to support 5 million families in upgrading their heating systems and improving energy efficiency. This includes the Boiler Upgrade Scheme, plus additional support for low-income households through schemes like the Energy Company Obligation (ECO).
If you are on certain benefits or have a low household income, you may qualify for additional support beyond the standard BUS grants. Contact your local authority or visit the government’s Find a Grant page for details.
Scotland and Northern Ireland
If you live in Scotland, separate grant schemes are available through Home Energy Scotland. In Northern Ireland, contact NI Energy Advice for information on local support programmes.
Practical Next Steps: What Should You Do Now
The best approach depends on your current situation, but here are some straightforward steps to help you plan ahead.
1. Assess your current boiler Find out how old your oil boiler is and what condition it is in. If it is less than 10 years old and well-maintained, you probably have several years before you need to make a decision. If it is older or showing signs of wear, start researching options now.
2. Get an Energy Performance Certificate (EPC) If you do not have a current EPC (less than 10 years old), arrange one. This gives you a clear picture of your home’s energy efficiency and highlights improvements that could reduce heating costs and make low-carbon systems more effective.
3. Consider your property type Think about whether your home is well-insulated, whether you have outdoor space for a heat pump, and whether you have room for fuel storage if you are considering biomass. Listed buildings, older properties with solid walls, and homes in conservation areas may face additional restrictions or find HVO a more practical option.
4. Get quotes and explore grants Contact MCS-certified installers to get quotes for heat pumps or biomass systems. Make sure they include the Boiler Upgrade Scheme grant in their pricing. For HVO, speak to OFTEC engineers about conversion costs and local fuel availability.
If you would like straightforward advice from experienced local engineers, contact South West Gas Services. We work with domestic, commercial, and landlord properties across the region and can help you understand your options without pressure.
5. Plan your budget Even with grants, you will likely need to contribute several thousand pounds towards a new heating system. Start budgeting now if replacement is likely within the next few years. Consider whether spreading costs through finance options makes sense for your circumstances.
6. Keep your current system maintained While you plan for the future, keep your oil boiler serviced annually to maximise its lifespan and efficiency. This buys you time and keeps your heating costs down while you prepare for the transition.
If you are wondering what size oil tank you need or want to understand how to save on heating oil while you still use it, our guides can help.
Common Questions and Concerns
Will I be fined if I still have an oil boiler in 2035? No. The government has confirmed there will be no fines for homeowners who still use oil heating after 2035. The phase-out focuses on reducing new installations, not penalising people with existing systems.
Can I still buy heating oil after 2026? Yes. Conventional heating oil will remain available for existing systems. The 2026 date affects new boiler installations, not fuel supply.
What happens if my boiler breaks down and cannot be repaired? If your oil boiler fails beyond repair after 2026 and you live in an off-grid area, you will need to choose a low-carbon replacement. This is why planning ahead and exploring options now makes sense, particularly if your boiler is already 10 years old or more.
Is HVO available now? HVO is currently available on a trial basis in some areas, with availability gradually expanding. Speak to your fuel supplier or an OFTEC engineer to find out about local availability and pricing.
Will heat pumps work in my old, poorly insulated home? Heat pumps work best in well-insulated properties, but they can still be installed in older homes. You may need to upgrade insulation, fit larger radiators, or consider a hybrid system. An MCS-certified installer can assess your property and recommend the best approach.
What about listed buildings or homes in conservation areas? Listed buildings and properties in conservation areas may face restrictions on external alterations, making heat pump installation more difficult. HVO or biomass may be more practical options. Consult your local planning authority and an experienced installer who understands the requirements.
If you are concerned about oil boiler pressure issues or cold weather affecting your system, our guides cover common problems and solutions.
Final Thoughts: Plan Ahead, But Do Not Panic
Oil heating is being phased out in the UK, but the timeline is gradual, and support is available to help you make the transition. You do not need to act immediately if your current system is working well, but planning ahead gives you time to explore options, save for costs, and take advantage of grants when you are ready.
The government’s approach focuses on reducing carbon emissions while recognising that rural and off-grid homes face unique challenges. Whether you choose a heat pump, HVO, biomass, or another low-carbon solution, the key is finding the option that works for your property, your budget, and your circumstances.
Our team at South West Gas Services has been supporting homeowners, landlords, and businesses across Somerset since 2016. We understand local properties and heating systems, and we are here to provide honest, practical advice as the heating landscape changes.
If you need guidance, servicing, or help planning your next steps, get in touch. We take care of everything from installation through to ongoing servicing, and we explain your options clearly so you can make the right decision for your home.