More than £50million in government support has been confirmed for low-income households relying on heating oil, as families across rural areas including the Isle of Wight face rising fuel costs.
The Chancellor has announced the funding in response to a sharp increase in the price of kerosene – the fuel used in heating oil – which has been heavily impacted by conflict in the Middle East. Prices have risen faster than other fuels such as petrol and gas, with kerosene now reported to be around double the price of crude oil.
Unlike gas and electricity customers, households using heating oil are not protected by the energy price cap. This leaves many exposed to sudden increases, often requiring large upfront payments to fill their tanks in order to maintain heating and hot water.
The government says the £50million package will provide targeted financial support to low-income households, particularly in rural communities where alternatives to heating oil are limited.
Chancellor Rachel Reeves has said:
“Heating oil prices have spiked sharply, and I know that for families in rural communities that is a real and urgent problem.
“That’s why we’re putting over £50million of support to help the people who need it most, including funding for the Northern Ireland Executive to deliver support in Northern Ireland where this issue hits hardest.”
Energy Secretary Ed Miliband has said:
“This government is committed to fighting people’s corner in tackling cost of living pressures. With this investment, alongside new measures to protect customers against any unfair practices, we are standing up for the British people.”
In England, £27million will be distributed through local authorities via the Crisis and Resilience Fund, which comes into effect from Tuesday (1st April). The funding is expected to be targeted at areas with higher reliance on heating oil.
Northern Ireland will receive £17million, Scotland £4.6million and Wales £3.8million, with allocations based on census data to reflect areas of greatest need.
The government has also confirmed its intention to introduce new consumer protections for heating oil customers, as the sector is currently not regulated by Ofgem.
Ministers say work is ongoing with industry to improve customer experiences and ensure households are better protected from future price shocks.
All pensioners should get help.
So should everyone then? That’s the issue, blanket statements like that sound good but don’t actually address who needs support or why this funding exists.
Including the very rich ones?
The “bund” in the picture might jut be deep enough to contain the contents of the tank, if it all leaked out, but, the wall is not sealed all the way around it, as there is one breeze block out of line, obviously not cemented in. Or is this a photoshop made up picture by an AI that doesn’t know what a bund wall is?
Of course it must be right that the poorest people are helped but I hope that the Government has learned from the WFA fiasco. The qualifying criteria must be more carefully selected so that it is not only those on benefit who get help. There are many who are just above benefit levels but for whom this very steep price hike will be simply unaffordable.
What about the old oil stock don’t tell me that the storage at the depots were dry I’m not a betting man but I’d bet old stock was charged at the higher prices