If Andy Burnham is elected as the next leader of the Labour Party and Prime Minister, he must not allow his new government to abandon previous commitments to the UK’s 1.7 million oil heated households to explore more affordable low carbon heating solutions.

The message comes from leading trade associations in the off-gas grid heating industry, amid concerns that a change in leadership at Westminster could see vital decisions on rural home heating delayed or forgotten, leaving off-grid families facing continued uncertainty.

During the election campaign in Makerfield, Burnham argued that Westminster has “refused to listen” to communities outside the capital for decades.

Under Sir Keir Starmer’s government, pressure from rural communities played a key role in convincing the government to launch its Alternative Clean Heating consultation, giving off-grid households a direct say in how their homes are heated.

An unprecedented 16,000 oil heated homes and technicians from across the UK submitted their views to the consultation to back renewable liquid fuels, like Hydrotreated Vegetable Oil (HVO), as a practical, affordable alternative to heat pumps. However, the government has still not responded to the consultation.

The Future Ready Fuel campaign, supported by OFTEC and UKIFDA, has warned that any attempt by an incoming Labour leader to ‘kick the can down the road’ will hit rural communities hardest.

Currently, government policy is for most households to install a heat pump. However, the upfront cost to transition an oil heated home onto a heat pump is £17,000, according to the consultation. Even with the Boiler Upgrade Scheme, recently increased to £9,000 for oil heated homes, many families would face a significant financial shortfall. The funding cap means it will also only be available to a small proportion of homeowners.

In contrast, switching to a blended renewable liquid fuel of HVO and kerosene removes any upfront cost as the fuel works in the existing oil heating system. If all oil heated homes made the transition to a 20% blend, it would have a similar impact on reducing carbon emissions to installing 347,000 heat pumps.

However, renewable liquid fuels currently are subject to a higher level of tax when used for home heating. The Future Ready Fuel campaign has been urging the government to equalise the duty applied to these fuels with that of kerosene.

Paul Rose, CEO of OFTEC, and Ken Cronin, CEO of UKIFDA, said: “The historic response to the recent consultation showed a massive groundswell of support for renewable liquid fuels. An incredible 16,000 rural households spoke up because they wanted a say in how they heat their home. In the current economic climate, they also cannot afford the high upfront costs and disruption of the current approach which prioritises heat pumps.

“However, with a new government, there is a risk progress could stall and decisions will be pushed further down the road. We’ve seen this happen time and time again. That’s why

we’ve been pleased to hear Burnham put rural communities at the heart of his campaign. We share his view that these households should not be treated as an afterthought.

“When it comes to heating, renewable liquid fuels can deliver significant carbon reductions without putting a high financial burden on households which will be the consequence of the government’s current approach. If Burnham is elected as leader, we look forward to working positively to deliver this meaningful change for rural communities.”

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