The UK government has confirmed over £50 million in targeted support for low-income households that rely on heating oil to help tackle surging fuel prices. The price of kerosene, used for heating oil, has risen sharply due to the conflict in the Middle East and is currently double the cost of crude oil. Unlike gas and electricity customers, households using heating oil are not covered by the energy price cap, leaving them exposed to sudden and significant price increases. Many families, particularly in rural areas, must pay upfront lump sums to top up their tanks to maintain heating and hot water.
Chancellor of the Exchequer Rachel Reeves highlighted the urgency of the problem, noting that the funding will help families across the UK, including £17 million allocated to Northern Ireland, where heating oil reliance is highest. England will receive £27 million, Scotland £4.6 million, and Wales £3.8 million. The funds will be distributed through local authorities via the Crisis and Resilience Fund (CRF) from 1 April, targeting areas with the greatest need based on census data. This initiative aims to ensure that vulnerable households can meet essential heating and hot water needs despite rising costs.
In addition to financial support, the government is taking steps to strengthen consumer protections in the heating oil market, which is currently unregulated by Ofgem. Measures include a strengthened industry Code of Practice, greater flexibility on delivery volumes, improved price transparency, and the formalisation of a Priority Customers Register to prioritise vulnerable households. The government is also exploring enhanced dispute resolution, varied repayment options, and stronger protections for groups such as the elderly. Plans include closer oversight by the Competition and Markets Authority (CMA), a potential new ombudsman or regulator, and coordination with the Northern Ireland Executive to ensure protections meet local needs.
Vulnerable households experiencing immediate financial difficulty are encouraged to contact their local authorities for available support. The CRF will replace the Household Support Fund from 1 April, building on the £842 million already committed through the Spending Review 2025. The CMA is actively investigating reports of cancelled orders followed by price hikes, while government ministers continue to engage with the heating oil industry to monitor pricing and protect consumers from unjustified increases.
