Oil boilers remain the most popular heating option for the 1.5 million UK homes not on the gas network. But with the government's push towards heat pumps and volatile oil prices, is a new oil boiler still the right choice in 2024?
The case for an oil boiler
Lower upfront cost: A new oil boiler installation (£1,700–£2,500) is significantly cheaper than an air source heat pump (£8,000–£15,000). For most homeowners, this difference is hard to justify without a substantial grant.
Familiar technology: Oil boilers work exactly like gas boilers — same radiators, same controls, same comfort levels. Heat pumps require lower-temperature heating systems (larger radiators or underfloor heating) to work efficiently.
Proven reliability: Modern condensing oil boilers from Grant and Warmflow are highly efficient (92%+) and extremely reliable with annual servicing.
The case against
Oil price volatility: Heating oil prices fluctuate with global oil markets, making budgeting harder than gas.
Future-proofing: The government plans to phase out new oil boiler installations in new-build homes from 2026. Replacements in existing homes are expected to be permitted longer, but the direction of travel is clear.
Our recommendation for 2024
If your current oil boiler has failed or is very old, replacing it with a modern condensing oil boiler is still perfectly sensible and cost-effective. If your system is working, consider timing any switch to alternatives like heat pumps for when government grants improve.