Thousands of households across the UK are facing rising heating costs—and for those off the gas grid, the pressure is intensifying.
In response, Chancellor Rachel Reeves has unveiled a £50m support package aimed at low-income and vulnerable households that rely on heating oil, as prices surge during the ongoing conflict in the Middle East.
Kerosene—the fuel used in most heating oil systems—has seen particularly sharp increases in recent weeks, rising faster than both petrol and mains gas. Unlike those energy sources, heating oil is not subject to the energy price cap, leaving off-grid households fully exposed to sudden market swings.
For many, the challenge is not just higher prices, but how those costs are paid. Heating oil is typically bought in bulk, meaning households often face large upfront bills just to keep their homes warm.
The new funding will be distributed through local councils from 1 April via the Crisis and Resilience Fund (CRF). Allocation has been based on regional need, with £27m earmarked for England, £17m for Northern Ireland, £4.6m for Scotland and £3.8m for Wales. Northern Ireland is expected to receive a significant share, reflecting the fact that up to 60% of homes there depend on heating oil.
Ministers have acknowledged the strain this places on vulnerable households, particularly those already managing tight budgets and limited financial flexibility.
Beyond immediate support, the Government is also signalling longer-term changes. A broader review of the heating-oil market is now underway, with plans to introduce formal regulation across the sector for the first time. This could include stronger consumer protections, improved service standards, and closer oversight of suppliers.
The Competition and Markets Authority has also launched an investigation into pricing, amid concerns about whether recent increases are fully justified. Further proposals on the table include appointing a dedicated regulator—potentially Ofgem—and creating an ombudsman through the upcoming Energy Independence Bill.
Taken together, the measures reflect a growing recognition that off-grid households face unique risks in volatile energy markets—and that greater protection may be needed as those risks continue to rise.
