Guide

Moving off oil heating in the Cotswolds

Short answer

An oil-heated home can change to a heat pump, a biomass boiler or LPG, or keep oil with a new boiler. The Boiler Upgrade Scheme gives £9,000 towards an air or ground source heat pump for oil homes until 31 March 2027. GOV.UK has set no ban on oil boilers in existing homes.

Updated 15 October 2026 · 3 min read · 7 sources

Your choices

There are four main choices. Each one suits a different home and budget.

An air source heat pump: the most common change. The grant is £7,500, or £9,000 for oil and LPG homes until 31 March 2027.
A ground source heat pump: suits homes with land for trenches or a borehole. It gets the same grant but costs more.
A biomass boiler: burns wood pellets or chips. The grant is £5,000, for rural homes off the gas grid. You need space to store fuel.
A new oil or LPG boiler: the lowest first cost, but no grant, and you keep buying fuel.

Is there a ban on oil boilers?

No, not for existing homes, at the date we checked. GOV.UK has not set a date to stop new oil boilers in existing homes.

New rules for new-build homes, the Future Homes Standard, come into force on 24 March 2027. They affect new buildings, not changes to your current home.

Check your home first

Start with a heat loss survey. It shows how much heat each room needs. It also shows if your radiators are big enough for a heat pump.

Fix draughts and add loft insulation where you can. In old stone houses, take advice before you insulate solid walls, because the wrong material can trap damp.

Check where an outdoor unit, a cylinder or a fuel store could go. If your home is listed or in a conservation area, ask the council about consent.

The grant rules

The Boiler Upgrade Scheme is open in England and Wales. You must own the home, and the new system must replace oil, gas, electric or LPG heating.

An MCS-certified installer applies to Ofgem for you, and the grant comes off the quote. Hybrid systems are not eligible. Biomass is only for rural homes off the gas grid.

GOV.UK says the extra £1,500 for oil and LPG homes runs until March 2027. Funding for the scheme is confirmed to 2029/30 under the Warm Homes Plan.

What happens to the oil tank

When you stop using oil, the tank must be emptied and taken away safely. Ask your installer if this is in the quote.

A firm that handles oil can drain the tank and dispose of the sludge. Do not cut up a tank with oil still in it.

What it costs

See our heat pump cost guide for national and local figures, and our new boiler cost guide if you keep oil. Get at least three written quotes.

Questions

Will a heat pump work in a Cotswold stone house?

Often yes, with the right design. The installer must size it from a heat loss survey. Some rooms may need larger radiators. See our guide on heat pumps in old stone houses.

Can I get a grant for a new oil boiler?

No. The Boiler Upgrade Scheme does not fund oil or gas boilers. It funds heat pumps and, for some rural homes, biomass boilers.

Does the extra £1,500 grant still apply?

Yes, at the date we checked. GOV.UK and Ofgem say the £9,000 rate for oil and LPG homes runs until 31 March 2027.