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The UK Government announces support package for heating oil customers amid rising energy costs

The UK government has unveiled a £53m support package for households using heating oil, targeting rural homes not covered by the energy price cap as global oil.

Written by
Jenna Culy
on 16 Mar 2026
and updated on
16 Mar 2026
Categorised in
News

The UK Government has introduced new financial support for households that depend on heating oil, providing relief for some rural and off-grid communities facing increasing energy costs. The price of kerosene - the fuel used for heating oil - has been especially affected by the conflict in the Middle East and has risen fast than other fuels such as petrol and gas.

During a press conference earlier today, Prime Minister Sir Kier Starmer confirmed a £53 million support package for the most

We are going to support rural communities with the cost of heating oil... £53m for households that are most exposed.

Sir Keir Starmer, Prime Minister

What heating oil support has been announced?

01

£53 million support package

The government has confirmed £53 million in funding to support some households facing high heating oil costs.

The support will be targeted at low-income households in rural communities affected by the recent surge in energy prices.

Funding will be allocated across the UK as follows:

  • England: £27 million
  • Northern Ireland: £17 million
  • Scotland: £4.6 million
  • Wales: £3.8 million
02

Support for rural & off-grid homes

The funding is intended to support homes not connected to the gas grid, many of which rely on heating oil for both home heating and hot water.

03

Support delivered locally

In England, the funding will be distributed by local authorities through the Crisis and Resilience Fund, which comes into effect on the 1st of April after the Household Support Fund finishes on the 31st March. Councils are expected to confirm how you can apply ahead of its launch.

In Scotland, Wales, and Northern Ireland, the funding will be allocated to devolved governments, with the expectation it will be used to support vulnerable households in off-grid communities.

Our advice

Further guidance on eligibility and how funding will be distributed is expected soon. Staying updated will help ensure you don't miss any support available.

Plan ahead for your heating oil supply:

Heating oil prices can move in response to global energy market changes. Planning deliveries in advance and keeping an eye on tank levels can help avoid last-minute orders.

Monitor market updates:

Energy markets can change quickly due to international events. We will continue sharing updates so customers understand how market changes may affect heating oil prices.

What happens next?

Full details about the support scheme are expected to be announced soon, including:

  • Eligibility criteria.
  • How households can apply and receive support.
  • When payments will be available.

Vulnerable  households who are facing immediate financial difficulties as a result of rising heating oil prices are encouraged to contact their local authority to find out what support may be available to them.

What should I do?

As this support is expected to be highly targeted, we recommend not waiting if your oil tank is running low, as you may not qualify and could risk running out. Ordering in good time can help avoid delays and ensure you have enough fuel to keep your home warm.

Coverage is improving across the country, allowing more delivery options and helping households access heating oil when they need it. Planning ahead and checking local delivery availability can help you stay prepared, particularly during periods of high demand.

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