Heating oil help: Government unveils over £50m relief for low‑income households as prices surge

Low‑income households who rely on heating oil are set to get a share of more than £50 million in government support, after prices jumped sharply during the Middle East conflict.

The price of kerosene, the fuel used for heating oil, has risen faster than petrol and gas due to the war, and in some cases has doubled. Many rural households, especially in Northern Ireland, rely on heating oil and often have to pay large upfront sums to fill their tanks.

What’s been announced?

The Government is releasing more than £50 million in targeted support for low‑income households that heat their homes with oil. Ministers say this is needed because heating‑oil customers aren’t protected by the energy price cap and are hit by price spikes much more quickly than gas or electricity users.

The help includes both direct financial support and a plan to tighten consumer protections in the heating‑oil market, including tougher rules on pricing and better treatment for vulnerable customers.

The funding will be split between the nations as follows:

• England: £27m

• Northern Ireland: £17m

• Scotland: £4.6m

• Wales: £3.8m

The split is based on census data and designed to help those areas where people are most likely to rely on heating oil.

How and when you can get help (England)

In England, the money will be given out by local councils through the Crisis and Resilience Fund (CRF), which launches 1 April 2026, replacing the Household Support Fund.

Each council will set its own rules, but support will be aimed at low‑income households who heat with oil. Expect application details to appear on local council websites from April.

How to get help in Northern Ireland, Scotland and Wales

The devolved governments will design their own schemes and publish details separately. Northern Ireland in particular is receiving a large share because of its heavy reliance on heating oil. Keep an eye on government announcements where you live.

What else is changing for heating‑oil customers?

The Government says it’s taking steps to improve fairness and transparency in the heating‑oil market, including:

• A strengthened industry Code of Practice with clearer rules on delivery flexibility and price transparency.

• A formal Priority Customers Register for vulnerable households, ensuring they get priority during disruptions.

• Exploring a new ombudsman or regulator through the Energy Independence Bill.

Meanwhile, the CMA is collecting evidence on potential unfair practices like cancelled orders and sudden price jumps.

FAQs: Heating oil price rise in 2026

Here are some of the frequently asked questions about the heating oil price rises in 2026.

Why are heating‑oil prices rising?

The Middle East conflict has pushed up global oil and refined kerosene markets. The Government says kerosene prices have risen faster than petrol and gas, and are around double the price of crude oil.

Does the energy price cap cover heating oil?

No, oil‑heated homes aren’t protected by the cap, which is why their bills can spike so suddenly.

How many homes use heating oil?

Roughly 1.5 million UK homes heat with oil, mostly in rural areas. Dependence is highest in Northern Ireland.

Heating oil government support in 2026 - quick overview

• The government has announced over £50m in targeted help for households that heat with oil, due to sharp price rises linked to the Middle East conflict.

• In England, money will flow via councils through the new Crisis and Resilience Fund (CRF) from the 1st of April 2026. Check your council for details.

• The devolved governments in Scotland, Wales and Northern Ireland will set their own rules.

• The Government also plans new consumer protections for heating‑oil customers and is backing a CMA probe into pricing.