UK energy suppliers are pushing back against Conservative backbench pressure to slow the switch to heat pumps, insisting the technology is cheaper, cleaner and ready for wider rollout even as ministers weigh softer rules for oil boilers.
Government Weighs Softer Line On Oil Boilers
Oil fired systems still heat about 1.7 million homes across the UK, mostly properties that sit off the gas grid. Ministers have been consulting on a plan to phase out new oil boiler sales from 2026, and a separate proposal would bar new gas boiler installations across all homes by 2035 as part of the broader net zero push. Recent reports suggest the government may soften that oil boiler plan, allowing new installations if they run on greener fuels such as hydrotreated vegetable oil, an idea championed by former environment secretary George Eustice through a proposed amendment to the Energy Bill.
Suppliers Defend The Case For Heat Pumps
Clementine Cowton, director of external affairs at Octopus Energy, told City A.M. that oil boilers are expensive and inconvenient, and are generally only fitted in homes that cannot reach the gas network. She argued heat pumps work in any type of home and outperform both gas and oil systems on cost, cleanliness and efficiency over time. As prices continue to fall, she said, homeowners will increasingly choose heat pumps on their own terms rather than being forced into the switch.
Heat pumps work by pulling energy from outside air and converting it into heating with no carbon emissions at the point of use. A government study concluded the units can suit homes of any style, contradicting claims made earlier this year by manufacturers including Bosch that older properties struggle to benefit from the technology.

Cost And Uptake Numbers Tell A Mixed Story
Octopus currently installs heat pumps for £2,500 once customers apply the £5,000 grant available under the Boiler Upgrade Scheme, a price point it says now matches fossil fuel alternatives. Centrica, which owns British Gas, is offering units from £3,000.
| Metric | Figure |
|---|---|
| Annual heat pump installation target (by 2028) | 600,000 |
| Discount voucher applications (May 2022 to July 2023) | 21,438 |
| Heat pumps installed across Europe to date | Over 20 million |
| Boiler Upgrade Scheme vouchers issued (value, year one) | Over £81 million |
The gap between the government's ambition and current uptake is stark. Ministers want 600,000 new low carbon heat pumps installed annually within five years, yet only 21,438 discount voucher applications were logged between May 2022 and July 2023. Europe as a whole has already installed more than 20 million heat pumps, underscoring how far behind the UK sits on adoption.
Industry Voices Call For Clearer Rules
Nigel Pocklington, chief executive of Good Energy, cautioned that the government risks
