The Prime Minister has announced a £53 million support package to help vulnerable households that rely on heating oil as global fossil fuel prices surge following conflict in the Middle East.
The Government says the funding will provide targeted support to households most exposed to rising costs, while also signalling that ministers may consider stronger regulation of the heating oil market. In England, it is expected to be available via the local authority-delivered Crisis Resilience Fund.
However, details on eligibility, delivery and how the scheme will operate across Scotland, Wales and Northern Ireland have yet to be published.
Ministers have also signalled that stronger oversight of the heating oil market may be introduced, with the Competition and Markets Authority asked to monitor prices closely and act if companies exploit the current crisis.
A spokesperson for the End Fuel Poverty Coalition commented:
“This announcement recognises that households who rely on heating oil are uniquely exposed to fossil fuel price shocks, the market lacks the consumer protections seen elsewhere in the energy system and government intervention is necessary when prices surge.
“The targeted support and steps towards stronger protections are welcome. However, the financial help announced today is relatively limited and will take time to reach households that are suffering now. We also need more details about eligibility and how the scheme will work in Scotland, Wales and Northern Ireland.
“If prices remain high ministers will need to go further with a stronger Alternative Fuel Support Scheme to ensure off-gas-grid households – including those in park homes, care homes and on heat networks – are properly supported.
“The longer-term solution must be helping oil-heated homes to move away from expensive fossil fuels through insulation, alternative heating systems, heat pumps and community energy so households are not repeatedly exposed to global energy shocks.
“We would also urge Ministers to talk to charities, advice providers and experts now about the measures that may be needed from 1 July after the current price cap protection ends.”
Caroline Abrahams CBE, charity director at Age UK, said:
“We welcome the Government’s recognition that households using heating oil require support, and it’s good that funding will be made available. However, we need to see the detail on how this will be delivered, and our strong sense is that £53 million is unlikely to match the scale of the challenge, given the number of households affected, many of them headed by older people who are already struggling with ongoing cost-of-living pressures.
“It’s also important to recognise that there are other groups of older people who are also facing immediate price rises – including some heat network consumers, park home residents and care home residents – who are not covered by this plan.
“For context, even before prices started rising because of the war, nationally representative polling commissioned for Age UK found that this winter one in three people aged 66+ (35%) – around 4.2 million – had recently cut back on heating or powering their homes. The clear implication is that many older people simply cannot cope with another increase in energy costs.
“We believe the Government should go further than has been announced today. Local authorities need sufficient resources and flexibility to respond quickly when people face sudden financial crises, and the scale of support on offer must reflect the level of need we’re seeing among older households.”