Blog / Breaking News

Google's New Rules Just Killed 73% Of Heating Company Ads

The October 2025 Google Local Services changes are devastating unprepared heating contractors. Sole traders, micro-businesses, and anyone using utility bill verification are at immediate risk.

December 2025 • 10 min read

Important: Verification Changes Are Live

Google has implemented major changes to Local Services Ads verification requirements. If you verified using a utility bill, you'll need to update your documentation to continue advertising.

Get help with verification

Google has announced the biggest changes to Local Services Ads since the programme launched. Starting October 20, 2025, the entire verification system is being overhauled, and many heating contractors risk losing their ability to advertise.

The changes are significant: utility bill verification will no longer be accepted, the Google Guaranteed badge is being replaced, and the Money Back Guarantee is ending. Contractors who don't update their documentation before the deadline could see their ads suspended. Here's what's happening, who's affected, and exactly what you need to do.

What's Actually Changing: The October 2025 Overhaul

Google is making three major changes simultaneously, creating a perfect storm for unprepared contractors:

1

Utility Bill Verification Ends

From October 2025, utility bills will no longer be accepted as proof of business registration. You'll need either a VAT registration certificate or Companies House registration documents.

Who's affected: Sole traders below VAT threshold
2

Google Guaranteed Badge Disappears

The green "Google Guaranteed" badge is being replaced with a blue "Google Verified" badge. All existing badges (Google Guaranteed, Google Screened, License Verified) are being consolidated into this single new badge.

Who's affected: Everyone using LSAs
3

Money Back Guarantee Discontinued

The Google Money Back Guarantee that protected consumers is ending. Claims can only be made for jobs completed before October 20, 2025, and must be submitted by December 7, 2025.

Who's affected: Consumers and businesses relying on trust signal

Key Dates for the Changes

Date Event Action Required
NOW Check your verification status Log into Google Ads dashboard and review documentation
20 October 2025 Google Verified badge launches; old badges replaced Must have updated verification documents in place
20 October 2025 Utility bill verification ends VAT or Companies House docs required
20 October 2025 Money Back Guarantee ends N/A - automatic change
7 December 2025 Final deadline for guarantee claims Submit any consumer claims before this date

Who's Most Affected: The Vulnerable Groups

Not everyone will be hit equally. Here's who needs to take action immediately:

Sole Traders Below VAT Threshold

If you turn over less than £90,000 per year and aren't VAT registered, you cannot provide a VAT certificate. You'll need to either register as a limited company with Companies House OR explore alternative documentation like HMRC UTR. Google is still clarifying options.

Contractors Who Verified With Utility Bills

If your original LSA verification used a utility bill as proof of business address, your ads WILL stop on October 20, 2025 unless you provide alternative documentation before that date.

Businesses Without Linked Google Business Profile

Since November 2024, a verified Google Business Profile has been mandatory. If you still haven't linked one, your ads are already at risk or may already be paused.

Contractors With Expiring Credentials

If your Gas Safe registration, insurance, or business documents are due for renewal around October 2025, you need to plan ahead. Any lapse will result in immediate suspension.

By The Numbers: Why This Matters

To understand the scale of this disruption, consider these industry statistics:

130,000
Gas Safe registered installers in the UK
83%
Of home service businesses are SMEs
£17.2bn
UK plumbing & heating sector value
Many
Contractors at risk of suspension

The heating industry is dominated by small businesses. SMEs account for 83% of all home service businesses, and many of these are sole traders or partnerships. These are exactly the businesses most vulnerable to the October 2025 changes.

This Isn't The First Time: The Pattern of Disruption

Google has been tightening Local Services Ads requirements throughout 2024-2025. Each change has caught contractors off guard:

Jul 2024
AI-driven lead rating replaces manual disputes

Google removed the ability to dispute leads for "job type not serviced" and "geo not serviced." Contractors who hadn't configured their service areas properly started paying for unqualified leads.

Nov 2024
Google Business Profile becomes mandatory

Ads without a linked, verified Google Business Profile were automatically paused. Thousands of contractors lost visibility overnight.

Jan 2025
Dedicated LSA app discontinued

Management moved to main Google Ads platform, confusing contractors used to the simpler standalone app.

Oct 2025
Biggest change yet: Verification overhaul

Utility bills rejected, Google Guaranteed replaced, Money Back Guarantee ends. The most disruptive change to date.

What You Need To Do RIGHT NOW

Don't wait until October. Here's your action plan:

1

Check Your Current Verification Status

Log into your Google Ads dashboard and navigate to Local Services Ads. Review what documentation you used for verification. If you used a utility bill, you need to act immediately.

2

Gather Alternative Documentation

Option A: VAT registration certificate (if registered)
Option B: Companies House registration (may require incorporating as limited company)
Option C: HMRC UTR documentation (Google is still confirming acceptance)

3

Verify Your Google Business Profile Is Linked

Since November 2024, this has been mandatory. Ensure your GBP is verified, public, and properly linked to your LSA account. The business name, address, and phone must match exactly.

4

Check All Credentials For Expiry Dates

Gas Safe registration, Public Liability Insurance, and any other required documents. If anything expires around October 2025, renew early to avoid gaps.

5

Consider Incorporating (If Sole Trader)

If you're a sole trader below the VAT threshold, forming a limited company may be your only reliable path to continued LSA access. Companies House registration costs £50 and provides permanent verification.

6

Update Your Documentation BEFORE October

Don't wait until the deadline. Submit new verification documents through your Google Ads dashboard now. Allow time for review and any issues to be resolved.

Complete Verification Checklist

Use this checklist to ensure you're fully compliant:

Requirement Accepted Document Status
Business Registration VAT certificate OR Companies House registration
Public Liability Insurance Current policy document (not Employer Liability)
Gas Safe Registration Valid Gas Safe ID card
Background Checks Completed via Evident for all field workers
Google Business Profile Verified, public, and linked to LSA
ID Verification Passport or driving licence for business owner

Don't Let Your Ads Get Suspended

Get a free audit of your Google Local Services Ads setup. We'll check your verification status and identify any issues that need addressing.

Get Free LSA Audit

Frequently Asked Questions

Your Local Services Ads will be automatically suspended. You won't appear in search results, and you'll stop receiving leads through the platform. You can regain access by submitting the required documentation, but there will be a delay while Google reviews your application, during which you'll have no LSA visibility.
You have two main options: (1) Register as a limited company through Companies House, which costs £50 and provides permanent acceptable verification, or (2) Wait for Google to clarify whether HMRC UTR documentation will be accepted. We recommend not waiting. Registering as a limited company is straightforward and eliminates uncertainty.
Yes, if your documentation is current and meets the new requirements. The badge change itself is automatic. However, if your original verification used utility bills, you'll need to submit alternative documentation for the conversion to succeed. Don't assume it will happen automatically. Check your status.
The Money Back Guarantee primarily protected consumers, not businesses. However, it was a trust signal that may have influenced customers to choose LSA-listed contractors. With it gone, reviews and responsiveness become even more important differentiators. You should focus on building strong reviews to maintain consumer trust.
Document verification typically takes 1-2 weeks, though it can be faster. Background checks through Evident take up to 3 weeks. If you need to register a new limited company, Companies House processing takes 24 hours to 10 days depending on whether you file online or by post. Don't wait until the last minute.
Yes, regular Google Ads (Search Ads) don't require the same verification. However, LSAs appear above regular ads and often perform better for local services. If you lose LSA access, you can still run Search Ads, but you'll be competing in a more crowded space without the trust signals of the Google Verified badge.

Don't Risk Your Business

The new verification requirements are now in effect. Get professional help to ensure your documentation is complete.

Get Your Free Audit

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