Families to benefit from over £50 million to help people pay for the rising cost of heating oil.
With winter drawing to a close, and families struggling with the rising price of heating oils, this government is committed to helping ensure that vulnerable families are able to heat their homes and access hot water.
The price of kerosene – the fuel used for heating oil - has been particularly impacted by the conflict in the Middle East and is currently double that of crude oil.
In Great Britain, unlike gas and electricity customers, those who heat their homes with oil are not covered by the energy price cap, meaning they are exposed to more immediate energy price hikes.
Many, including some of the most vulnerable households, will need to pay an upfront lump sum to top up their tanks in order to maintain their heating and hot water.
Chancellor of the Exchequer Rachel Reeves said:
Heating oil prices have spiked sharply, and I know that for families in rural communities that is a real and urgent problem.
That’s why we’re putting over £50 million of support to help the people who need it most, including funding for the Northern Ireland Executive to deliver support in Northern Ireland where this issue hits hardest.
Energy Secretary Ed Miliband said:
This government is committed to fighting people’s corner in tackling cost of living pressures. With this investment, alongside new measures to protect customers against any unfair practices, we are standing up for the British people.
To bridge the gap, the Chancellor is announcing over £50 million of targeted financial support, helping low-income households in rural communities who have no choice but to top up their tanks at a time when prices have risen so significantly.
In England, funding will be distributed by local authorities via the Crisis and Resilience Fund (CRF), which comes into effect from 1 April, targeted areas with higher rates of oil heating.
This is a particular issue in Northern Ireland, where a greater proportion of homes rely on heating oil, and we have allocated £17 million to support them. England will receive £27 million, Scotland £4.6 million and Wales £3.8 million.
This funding has been allocated based on census data, reflecting where the greatest need is, and it will be allocated directly to the devolved governments, with the expectation that it will be used to support vulnerable households.
Heating oil is different from other sectors in the energy market as it does not have the same consumer protections and is not regulated by Ofgem. The government intends to introduce new consumer protections for heating oil customers and is rapidly exploring new ways to step in and ensure households are better protected.
This includes:
In addition, the Chancellor earlier this week wrote to the Competition and Markets Authority (CMA) to ask that it remains vigilant across heating oil prices and supports CMA action to tackle unjustified price increases.
The government will not tolerate profiteering or unfair practices and urge customers to share any evidence of price manipulation with the CMA.
| Vulnerable households who are facing immediate financial difficulties as a result of rising heating oil prices are encouraged to contact their local authority to find out what support may be available to them. |
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