Tag: Heating Oil

Government announces fresh range of changes to bring down energy costs

Energy Secretary Ed Miliband has set out a package of measures designed to reduce the country’s dependence on volatile costs of fossil fuels.

Recent polling carried out for the End Fuel Poverty Coalition found that 77% of the public agreed that ‘history just keeps repeating itself with energy prices’ and 72% felt that ‘our reliance on oil and gas makes us vulnerable to global price shocks.’ [1]

Ministers have backed the public’s view, arguing that two fossil fuel shocks in less than five years demonstrate that “the era of fossil fuel security is over, and the era of clean energy security must come of age.”

As part of the package of measures, the Government has increased support for households using heating oil and LPG to move to heat pumps by raising the boiler upgrade scheme grants to a total of £9,000. Moves will also be taken to make installing heat pumps easier in flats.

An additional £100 million in funding will help deliver energy upgrades to 100,000 social homes through the Warm Homes Plan, on top of the £1.2 billion pledged earlier this year.

A £25 million pilot scheme, delivered via local authorities and mayors, will install plug-in solar panels for low-income households.

Measures taken by the Chancellor include a new carrot and stick approach to reforming the cost of some electricity generation where energy firms are incentivised to lower prices by moving to new contracts or face higher windfall taxes.

Other announcements include:

  • A cross-government drive to build renewables on public estate land and expand solar-installation support for schools and colleges.
  • Legislation and consultation to expand EV charging provision, including cross-pavement charging, new and renovated buildings and easier access for renters and leaseholders.
  • A wide-ranging overhaul of planning, land access and grid connection rules to speed up clean energy infrastructure.

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented

“Every spike in global gas markets feeds directly into household energy costs, and people in fuel poverty often pay the heaviest price.

“Research shows that the public understands this and wants to take action, but needs support to invest in energy efficiency measures.

“Any speeding up of the Warm Homes Plan will deliver more support to households quicker than planned. However, delivery through this Plan must include locally provided, specialist advice to ensure households choose the right options and a Warm Homes Guarantee so that consumers are sure to see the benefits of new technology.

“With bills forecast to rise from July, moves to get energy efficiency measures into homes and plans to delink the cost of gas from electricity bills can’t come soon enough. But until these reforms take effect, it’s clear that households will also need support with their energy costs.

“The households most exposed to that increase need support now, not just long-term structural change. That means help for those on low incomes, in poorly insulated homes, or relying on heating oil and LPG outside the price cap.”

Gavin Smart, chief executive, Chartered Institute of Housing, said:

“As another international crisis starts to push energy bills even higher, it is right that the government looks to accelerate the Warm Homes Plan.

“Every piece of loft insulation or solar panel that we install helps to keep homes warmer and cheaper to power, while reducing our reliance on volatile fossil fuel markets. CIH and our members will continue to support the government with this work in these crucial months before next winter.”

Jonathan Bean from Fuel Poverty Action, added:

“Any progress is welcome, but we are still a million miles from fair and affordable energy for all.  Without bigger changes, millions of people will still face cold homes and unaffordable electricity prices.

“Our energy system will still be dominated by huge profits and high prices.  Half-baked plans for air-to-air heat pumps and plug-in solar will still fail most people living in flats.

“Those most in need will still not get their fair share of the cheap clean energy we are generating.  Government must make green fair, and deliver on its election promise to reduce bills by £300.”

National Energy Action responded on LinkedIn, commenting:

“Measures that deliver genuinely cheaper and more stable electricity prices for households, with a particular focus on those on low incomes or experiencing energy debt, are positive for those in fuel poverty. Any market intervention should be assessed against a clear test: whether it reduces energy bills in practice and improves affordability, enabling fuel poor households to heat their homes to a safe and adequate standard.

“More funding for heating oil and LPG customers in the Boiler Upgrade Scheme offers an opportunity to reduce their reliance on volatile fossil fuel markets. Many LPG households experience deep vulnerability, often combining low incomes with high levels of disability or long‑term illness. To be effective and equitable, the scheme must proactively reach and support low‑income, fuel poor households, particularly those who are least likely to seek support independently. Failure to do so risks excluding those who stand to benefit most.

“Additional funding for the Social Housing Fund has the potential to progress the government’s fuel poverty targets. Around 13% of social renters live in fuel poverty, and increased investment can deliver warmer, healthier homes for some of the most financially vulnerable households

“Increased support for low‑income households to access plug‑in solar will benefit fuel poor households, as a significant proportion live in flats, where rooftop solar is harder to obtain. Plug‑in solar can enable these households to benefit from self‑generation and reduced reliance on the grid. This support should be accompanied by clear advice on optimal tariffs and integrated with energy efficiency measures, such as insulation, to maximise bill reductions and long‑term affordability.”

ENDS

[1] Survation were commissioned by the End Fuel Poverty Coalition to interview 2,047 people from 2-7 April 2026. Data were weighted to the profile of the UK. Data was weighted by respondent’s sex, age, region, household income, highest qualification, and past vote (GE24, EU16). Research tables are available here.

Heating oil and LPG customers to get additional support to install heat pumps

The Government has announced an increase to the Boiler Upgrade Scheme (BUS) grant for properties heated by oil and LPG. The scheme forms part of the Government’s Warm Homes Plan and provides upfront capital grants to support the installation of heat pumps in homes and non-domestic buildings in England and Wales.

The existing grant currently stands at £7,500 for air source and ground source heat pumps and the increase to £9,000 specifically for oil and LPG properties represents a recognition that these households face higher costs and have greater exposure to global fossil fuel price shocks than those on the gas grid.

The scheme is available to owner-occupiers in England and Wales replacing an existing fossil fuel heating system. The grant is applied by an MCS-certified installer and deducted directly from the installation cost , meaning households do not need to fund the full amount upfront before claiming back.

A spokesperson for the End Fuel Poverty Coalition commented:

“Heating Oil and LPG customers have been among the hardest hit by the current crisis. The three million households relying on these fuels sit outside the energy price cap and have no equivalent protection when global prices spike.

“These households are disproportionately in rural areas, have lower incomes, and live in older, harder-to-upgrade properties.

“A £9,000 grant for these homes will be very welcome, but it may not totally bridge the gap for those who cannot afford the remaining costs or whose homes need substantial preparatory work.

“Therefore, the expansion of this scheme must be accompanied by specialist local advice for households, stronger consumer protections during the works, and targeted additional support for those who cannot meet the shortfall.

“The measure of success is not how many grants are issued, but whether the households most exposed to fossil fuel price shocks are genuinely better off as a result.”

Households face a fresh energy bill threat as gas prices hit three-year high

Gas prices have soared to a three-year high and oil prices increased further as the Middle East conflict escalates.

Attacks on energy sites in Iran and Qatar were followed by threats from US President Donald Trump to “massively blow up” a key Iranian gas field.

UK natural gas prices spiked by more than 124% month-on-month and 65% up year-on-year, the highest level since the conflict escalated at the end of February. [1]

While the FTSE100 is trading down 1.9% shares in energy firms have risen, taking share price gains by these firms since the conflict started to close to 10%. [2]

A spokesperson for the End Fuel Poverty Coalition, commented:

“These gas and oil prices haven’t been seen since the winter of 2022/23 when an Energy Price Guarantee was needed to protect households from the worst excesses of our exposure to global markets. The reality is that households will face a ‘Trump Tax’ on their energy bills as a result of this war and the case for Government action to support households is becoming impossible to ignore.

“We have written to Ministers with proposals to ensure support reaches the households most exposed to high energy costs first, while giving Government the ability to scale up help quickly if the crisis continues.

“That means immediate support for households relying on heating oil, LPG and other off-gas fuels, help for heat network customers facing rising commercial energy prices, and targeted reductions in energy bills from July when the price cap rises. It also means faster action on energy debt, stronger winter support through the Warm Home Discount and reformed Cold Weather Payments, and an overhaul of electricity pricing so households are not left paying more than they should.

“These are practical steps that can protect people now while complementing longer-term plans such as the Warm Homes Plan and moves to renewables, which are essential to bringing bills down for good.”

Jess Ralston, Head of Energy at the Energy and Climate Intelligence Unit (ECIU), said:

“This will be a major concern to bill payers, many of who are still carrying debt from the last gas crisis when Russia invaded Ukraine. That led to taxpayers having to step in essentially subsidising gas for millions of homes to the tune of tens of billions. And let’s be clear trying to squeeze more gas out of the North Sea has no real impact on the price households pay because its set by international markets and these kind of world events caused by foreign actors like Putin.

“Put simply, if you want to insulate yourself from these kind of price shocks, use less gas. British wind and solar farms lower our dependence on foreign gas, as do net zero technologies like electric heat pumps and this helps with bill stability. British wind power lowered wholesale prices by a third last year. These are permanent solutions, whereas the North Sea is a mature basin running out of oil and gas, quicker drilling means it runs out quicker.”

[1] Trading Economics, 0930 Thursday 19 March.

[2] Bloomberg data on End Fuel Poverty Coalition share price watch list of 15 listed firms involved in the UK energy sector.

Heating oil households to receive support as ministers consider market crackdown

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.”

Government warns suppliers over heating oil prices

The cost of heating oil has surged sharply over the past two weeks as conflict in the Middle East pushes global oil markets higher.

Data suggests that the cost of filling a heating oil tank has doubled in less than 14 days. [1]

Unlike households using gas or electricity, homes heated by oil are not protected by the energy price cap, meaning global price shocks are felt almost immediately.

Around 1.5 million households across the UK rely on heating oil, with particularly high levels in rural areas and in Northern Ireland where the majority of homes use oil for heating.

In the past 48 hours, ministers have signalled growing concern about the impact of rising oil prices on household bills.

During a visit to Belfast, the Prime Minister warned heating oil suppliers that prices must be “fair, transparent and justifiable”, saying the Government “will not tolerate profiteering” as global tensions push energy costs higher.

The Government has also asked the Competition and Markets Authority (CMA) to keep heating oil prices under close scrutiny alongside petrol and diesel prices.

Separately, the Chancellor and Energy Secretary have held talks with fuel retailers in Downing Street, warning companies not to exploit global instability by increasing margins.

A spokesperson for the End Fuel Poverty Coalition, commented:

“It is right that the Government is asking the Competition and Markets Authority to keep a close eye on heating oil prices as global tensions drive up costs.

“Homes that rely on heating oil sit completely outside the energy price cap. That means as global oil markets spike, families in rural and off-grid homes have seen the costs they are expected to pay more than double in less than two weeks.

“While transparency and scrutiny are essential to ensure households are not being overcharged, it is becoming increasingly clear that the Government may have to act in the weeks ahead to provide further protections and support for these households. Longer term, the lesson is clear: leaving so many homes dependent on volatile fossil fuel markets exposes them to repeated price shocks.”

[1] Data from BoilerJuice shows a price of 63.1p per litre on 1 March has risen to 128.1p per litre on 13 March.

Heating oil prices surge as conflict pushes up costs for off-gas homes

The cost of heating oil continues to surge due to the Middle East conflict, now hitting levels not seen since the early days of the Ukraine invasion. Reports from some customers suggest that 1,000 litres now costs almost £985, compared to £670 in January.

During the height of the last price spike, the government recognised that off-gas-grid homes were exposed to fuel price spikes and weren’t covered by the Energy Price Guarantee, so it introduced the separate Alternative Fuel Payment – a £200 one-off payment for households using fuels such as heating oil, LPG or biomass.

A spokesperson for the End Fuel Poverty Coalition, said

“Households that rely on heating oil are often some of the most exposed to global fossil fuel price shocks because they sit outside the energy price cap.

“These homes are also those that are among the deepest fuel poverty as the cost of home improvements which could help reduce the cost of energy can be prohibitive.

“This means that when overseas conflicts send oil prices soaring, the cost of heating for families in rural and off-grid homes can jump almost overnight.

“While other households are protected by the energy price cap for now, homes heated by oil are starting to suffer now and may need urgent support.

“This is another harsh reminder that relying on volatile fossil fuel markets leaves households vulnerable. The long-term answer has to be looking at alternative heating systems and creating warmer homes by supporting people who need to improve energy efficiency.”

Meanwhile early signs suggest energy suppliers are once again increasing exit fees on fixed tariffs.

These charges, which households must pay if they leave a fixed deal early, surged during the last energy crisis as suppliers tried to protect themselves from volatile wholesale markets. In some cases exit fees climbed to more than £100 per fuel, making it expensive for households to move supplier even when cheaper deals became available.

Campaigners warn the same pattern could now be repeating. If exit fees rise again, households who fix their tariff to gain certainty could find themselves stuck in poor value deals or tied to suppliers providing weak customer service, simply because the cost of leaving becomes too high.

A spokesperson for the End Fuel Poverty Coalition told the Telegraph:

“Every time the global gas market starts to spike, exit fees creep up. What should be a simple choice about fixing your bill risks becoming a trap that locks households into expensive deals or with poor customer service. Ofgem should act quickly to implement an exit fee ceiling to help protect consumers.”