The average household burning LPG for heat and hot water spends around £2,400 a year on fuel alone. That is nearly double what a mains-gas neighbour pays, and more than three times the cost of a well-installed heat pump running on the current price cap. Yet this week, Politics Home published an article arguing that LPG is a ‘strategic asset’ in the UK’s net-zero energy transition. The claim deserves scrutiny, especially for the 1.5 million British homes that rely on it.
The piece, published by Politics Home, makes the case that LPG, liquefied petroleum gas, offers a lower-carbon bridge fuel for rural homes not connected to the gas grid. Its logic runs that LPG can be decarbonised via bioLPG blends, and that existing infrastructure should not be written off. But for a homeowner staring at a £3,000 annual heating bill, the strategic argument feels abstract.
Who qualifies, and who doesn’t
The UK’s off-gas-grid homes are concentrated in rural Scotland, Wales, Northern Ireland, and parts of the South West. Many are solid-wall, poorly insulated Victorian or stone cottages. For these households, LPG is often the only ‘conventional’ option after oil. But the economics are brutal. At current prices, LPG delivers heat at roughly 12p per kWh, compared with 6p for mains gas and 7p for a heat pump on the standard tariff. That gap widens further when you factor in the lower efficiency of an LPG boiler (typically 85-90%) against a heat pump’s coefficient of performance of 3 or more.
The Politics Home article notes that bioLPG can reduce lifecycle emissions by up to 90% versus conventional LPG. True, but bioLPG currently accounts for less than 1% of UK LPG supply, and costs even more. The Energy Saving Trust advises that switching to a heat pump or a high-heat-retention storage heater is typically the most cost-effective long-term move for off-grid homes, especially where insulation is improved first.
What it costs a typical 3-bed semi
Take a 100 m² semi-detached house in the Cotswolds with an EPC rating of D, using 18,000 kWh of heat per year. On LPG at 12p/kWh, the annual heating bill is £2,160. A mains-gas equivalent at 6p/kWh would be £1,080. An air-source heat pump, even at the current electricity price cap of 24.5p/kWh, would cost roughly £1,470, thanks to the heat pump’s efficiency. Factor in the £7,500 Boiler Upgrade Scheme grant, and the heat pump pays back its installation cost in five to seven years. LPG offers no such upgrade path.
Yet the catch is that not every home is heat-pump ready. Solid-wall insulation can cost £10,000-£15,000, and some listed buildings face planning restrictions. For those homes, bioLPG might be a transitional option, but at a premium. Officials have not confirmed when or if bioLPG will become price-competitive.
The ‘but’ pivot
What the Politics Home article misses is the opportunity cost. Every pound spent subsidising or promoting LPG infrastructure is a pound not spent on heat pumps, district heating, or grid reinforcement for rural areas. The Climate Change Committee has repeatedly warned that the UK is off track for its 2030 heat pump installation target of 600,000 per year. In 2023, only 55,000 were installed. Lobbying for LPG as ‘strategic’ risks slowing that progress.
Ofgem data shows that network charges for electricity are rising, but so are LPG delivery costs, which include road tanker transport and storage. The price volatility of LPG, linked to global oil markets, adds another layer of risk for households on tight budgets.
What to do now
Homeowners currently on LPG should start by getting an EPC assessment and a heat-loss calculation. If your home can be insulated to a reasonable standard, apply for the Boiler Upgrade Scheme before the March 2027 deadline. If a heat pump is not feasible, consider a hybrid system, a heat pump for the shoulder seasons and a small LPG boiler for the coldest days, but only as a temporary step. Do not replace an ageing LPG boiler with another LPG boiler unless you have no other option. The fuel’s ‘strategic’ status does not make it cheap.
Frequently Asked Questions
No. BioLPG typically costs 20-30% more than conventional LPG, and supply is very limited. It is not currently a cost-effective alternative for most households.
Yes, if you live in England or Wales. The Boiler Upgrade Scheme offers £7,500 off the cost of an air-source heat pump. You must have a valid EPC and no outstanding insulation recommendations. Scotland has its own Home Energy Scotland grant and loan scheme.
