Financial help for households reliant on heating oil – who is eligible?

Sir Keir Starmer has announced a package of financial help for households struggling with the soaring cost of heating oil on the back of the conflict in the Middle East.

– Why is the cost of heating oil already so high?

Following the US-Israeli strikes, volatility in the Middle East – compounded by Iran warning vessels not to pass through the Strait of Hormuz – has led to the price of heating oil at least doubling in the past week alone.

The price of kerosene – the fuel used for heating oil – has been especially affected by the conflict and has risen faster than other fuels such as petrol and gas, largely because distributors hold minimal stocks, leaving them exposed to sudden market volatility.

Unlike gas and electricity customers, Ofgem’s price cap does not cover those who heat their homes with oil, meaning they are exposed to more immediate cost spikes.

– How many households use heating oil?

Home heating oil is used by around 1.5 million mainly rural households in the UK.

The problem is particularly acute in Northern Ireland, where 62.5% of homes rely on it, compared with the UK average of just more than 5%.

– What help has the Government announced for these households?

The Prime Minister and the Chancellor have announced that around £50 million will be made available to help low-income families who heat their homes with oil.

Some £17 million has been allocated to Northern Ireland, England will receive £27 million, Scotland £4.6 million and Wales £3.8 million.

The Government said it also 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”.

– How will the money be distributed?

Funding has been allocated based on census data, and will be allocated directly to the devolved governments, with the expectation that it will be used to support vulnerable households, the Government said.

In England, funding will be distributed by local authorities via the Crisis and Resilience Fund (CRF), which comes into effect from April 1. Councils can provide support before then via the Household Support Fund, which runs until March 31.