In support millions of off-grid households facing rising energy costs, the Heating and Hot Water Industry Council (HHIC) and OFTEC have jointly written to the government calling for urgent policy action, including subsidies for hybrid heating systems.

In a letter to Energy Consumers Minister Martin McCluskey, the organisations highlight the ongoing challenges for around four million UK homes that are not connected to the mains gas grid and instead rely on heating oil or LPG for their heating and hot water. These households are particularly vulnerable during periods of global energy volatility, as heating oil and LPG are not covered by the energy price cap.  Recent international events have driven sharp increases in fuel costs, leaving many consumers exposed to sudden and significant price rises.

While welcoming the Government’s recently announced £53 million support package for vulnerable off-grid households, HHIC and OFTEC stress that longer-term, structural solutions are needed to reduce exposure to volatile fossil fuel markets. The organisations are urging ministers to prioritise hybrid heating systems – combining a traditional oil or LPG boiler with an air source heat pump and smart controls – as part of the UK’s wider energy and decarbonisation strategy.

It is argued that such systems offer a more accessible and cost-effective transition for off-grid homes, while delivering up to 80% of a home’s annual heating demand through the heat pump, significantly reducing fuel consumption, lowering emissions, and improving energy resilience.

HHIC and OFTEC claim that if hybrid systems had been eligible for support under the Boiler Upgrade Scheme (BUS), many households would already be benefiting from lower energy bills and reduced reliance on oil.

They are now calling on the Government to:

  • Include hybrid heating systems within the Boiler Upgrade Scheme
  • Provide targeted support for off-grid households
  • Adopt a more flexible, technology-inclusive approach to decarbonisation

The organisations say such measures would not only help cut consumer bills but also reduce the need for costly emergency interventions in future.

In addition to hybrid systems, the letter highlights the role of renewable liquid fuels such as hydrotreated vegetable oil (HVO), which are less exposed to global fossil fuel price shocks.  Strong public support for these alternatives has already been demonstrated through recent government consultations.

HHIC director Stewart Clement says: “Members of both HHIC and OFTEC are standing ready to work with Government to deliver practical, affordable and low-carbon heating solutions for off-grid homes. A balanced approach – combining hybrid systems, renewable fuels and targeted support – will be essential to protect consumers, strengthen energy security and meet the UK’s net zero goals.”