Responding to the Budget, Paul Rose, CEO of OFTEC, said:
“We welcome the government’s recognition that households who rely on heating oil, many of them in rural areas, have faced a difficult year due to the conflict in the Middle East.
“However, most of today’s support is focused on gas and electricity. Oil heated homes will see some benefit on their electricity bills, but while gas households will also see standing charges abolished there is no equivalent help for households on heating oil. The £100 payment for homes in council tax bands A-D is welcome, but households that are asset rich, but cash poor will miss out – and that could include many in rural areas. The government has committed to helping communities outside major towns and cities so it must make sure the 1.7 million homes that use heating oil are not left behind.
“The Budget also cuts the future planned heat pump grant funding through the Boiler Upgrade Scheme, which has been the main driver for growing the heat pump market. Yet at the same time the government is proposing to continue to fine boiler manufacturers who don't produce a target number of heat pumps through its Clean Heat Market Mechanism. Given the dependence of the heat pump market on public subsidy, this approach will only serve to damage the ability of our industry to invest, and is likely to lead to higher prices for customers.
"For consumers, despite cuts to BUS, the government's message is still that heat pumps are the preferred solution. However, many older rural homes will face thousands of pounds to make the switch even with the grants available. It was disappointing there was no mention of renewable liquid fuels as an alternative solution when 16,000 people supported them in the Alternative Clean Heating consultation. These fuels could cut emissions from oil heated homes quickly, using their existing boiler and tank, which removes the high upfront cost. We continue to urge the government to publish its full response to the consultation to give clarity to oil heated households."