The Autumn Budget on 28 October 2026 brought some welcome news for South West households, especially if your home isn’t on the gas grid. From cheaper heating oil to a deadline on the £9,000 heat pump grant, here’s what’s changed and what it means for you.

At a glance

• Import tariffs on kerosene heating oil suspended until December 2028
• £9,000 Boiler Upgrade Scheme grant for oil and LPG homes available until 31 March 2027
• VAT on heat pumps goes back up from 0% to 5% on 1 April 2027
• 0% VAT on electricity extended until July 2027
• £100 energy payment for households in council tax bands A to D, from January 2027

Good news if you heat your home with oil

Many homes across the South West rely on heating oil. In response to the conflict in the Middle East, the government is suspending import tariffs on kerosene heating oil from 26 November 2026 until December 2028. That should help ease the cost of filling your tank over the next two winters.

The Budget also points to more than £50 million of targeted support, announced in March, for low-income households who heat with oil.

The £9,000 heat pump grant has a deadline

If you’re on oil or LPG, the Boiler Upgrade Scheme currently offers £9,000 towards an air source or ground source heat pump, compared with £7,500 for everyone else. That higher grant is available until 31 March 2027.

Demand is strong. In August 2026, a record month, 43% of all BUS vouchers issued were for the £9,000 grant. And the scheme’s budget is staying at £400 million for 2027 to 2028, rather than rising as planned. If you’ve been weighing up a move away from oil, now is a good time to start the conversation.

Beat the VAT rise in April

Heat pumps, insulation and heating controls currently have 0% VAT. That ends on 31 March 2027, and the rate goes back to 5% from 1 April. Together with the £9,000 grant deadline, that makes the next five months the best window we’ve seen for switching from oil or LPG to a heat pump.

Help with your bills this winter

• 0% VAT on electricity has been extended until July 2027, which the government expects to take around £50 off the annual price cap in April 2027. Good news if you already run a heat pump or electric heating.
• £100 Household Energy Payment: households in England in council tax bands A to D will get £100 paid directly into their bank account from January 2027.
• Gas standing charges are set to be scrapped, aiming for the end of 2027. If you’re on mains gas, the cost will move onto your unit price instead.

What’s changing in wider support

Around £1 billion has been trimmed from the Warm Homes Plan, though the Treasury says most funding for low-income households is protected. The ECO4 scheme closes on 31 December 2026.

What should South West homeowners do now?

1. On oil or LPG? Book a heat pump survey before 31 March 2027 to make the most of the £9,000 grant and 0% VAT.
2. Staying on oil for now? Get your boiler serviced by an OFTEC-registered engineer to keep it running efficiently through winter.
3. Check your council tax band to see if you qualify for the £100 payment.
4. Protect your system with a Care Plan, from £12.50 a month.

Your local heating experts

We’re a family-run business that’s been keeping homes warm since 1980, and our South West team knows off-grid homes inside out. We’re Gas Safe, OFTEC and MCS accredited, so whether you’re servicing your oil boiler or switching to a heat pump, we can help. Call 0330 383 0000 or visit customheat.co.uk.