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Government unveils £53m aid as heating oil prices surge

About 1.5 million households in the UK use heating oil. Prices for heating oil are not capped by the regulator Ofgem, unlike gas and electricity.

Starmer

Starmer said reports of cancelled orders and price increases had been flagged by the competition regulator.

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PRIME MINISTER Keir Starmer on Monday announced a £53m support package to help households facing higher heating oil costs.

The government said the support will be targeted at low-income households in rural communities affected by rising oil prices. Local councils will decide who qualifies and how the funding is distributed.


About 1.5 million households in the UK use heating oil. Prices for heating oil are not capped by the regulator Ofgem, unlike gas and electricity. Some households say their costs have doubled since crude prices rose following the US-Israeli war with Iran.

Northern Ireland has around 500,000 homes using heating oil. In Great Britain, about 3.6 per cent of households rely on heating oil, including 760,000 in England, 140,000 in Scotland and 110,000 in Wales, BBC reported.

In England, the funding will be distributed by local authorities through the Crisis and Resilience Fund from April 1. Local councils will decide how the money is allocated. Scotland, Wales and Northern Ireland will receive funding through their devolved governments. Northern Ireland will receive £17m, England £27m, Scotland £4.6m and Wales £3.8m.

Northern Ireland first minister Michelle O'Neill said the £17m allocation was a “slap in the face” and added it “doesn't touch the surface of what is required”.

The government said it is exploring new protections for heating oil customers as the sector is not regulated by Ofgem.

Starmer said reports of cancelled orders and price increases had been flagged by the competition regulator. “If the companies have broken the law, there will be legal action,” he said.

Energy Secretary Ed Miliband said the government could intervene on energy bills if necessary, depending on the impact of the conflict.

Denise, from rural Suffolk, told BBC Your Voice that the price of 500 litres of heating oil had risen from £275 to £800 since the war in Iran began. She said: “However, I will have to see what they say when I apply for it on April 1st.”

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