Prime Minister Sir Keir Starmer has announced a £53m package to help vulnerable households hit by soaring heating oil prices, delivered through the crisis and resilience fund to be used from 1 April and targeted at low‑income rural communities. The money will be distributed by local authorities in England with devolved governments receiving direct allocations for Scotland, Wales and Northern Ireland. The move follows reports of sharp price rises for customers buying oil after the outbreak of the US‑Israel war with Iran.
What the Crisis And Resilience Fund will provide
The government has set out that England will receive £27m to be channelled local councils through the Crisis And Resilience Fund, which replaces the temporary Household Support Fund and comes into effect on 1 April. Northern Ireland will receive £17m, Scotland £4. 6m and Wales £3. 8m, with the expectation that devolved administrations will use the allocations to support vulnerable households. Funding in England is to be directed to those at immediate risk of losing hot water and will be apportioned in proportion to the number of heating oil users in local areas.
About 1. 5 million UK households use heating oil, with roughly 500, 000 of those in Northern Ireland and the remainder across Great Britain where around 3. 6% of households rely on oil: approximately 760, 000 in England, 140, 000 in Scotland and 110, 000 in Wales. The UK Fuel Distribution Association has explained that many suppliers buy fuel at market price almost daily, a factor cited for rapid price increases being passed to consumers. The competition watchdog has opened a probe into concerning reports of cancelled orders and price‑pushing practices, and the government said it was rapidly exploring ways to bring in new protections for heating oil customers who are outside Ofgem regulation.
Immediate reactions from officials and rural representatives
Sir Keir Starmer, prime minister, said: “If the companies have broken the law, there will be legal action. ” Energy Secretary Ed Miliband said the government was committed to tackling cost of living pressures and was planning “new measures to protect customers against any unfair practices. ” Chancellor Rachel Reeves described the heating oil policy as aimed at “people who need it most. “
Voices from affected areas and rural groups were sharply critical. Joe Morris, Labour MP for Hexham, said he had been “shocked and angered” by the impact of the price spike and blamed “poor regulation”. Michelle O’Neill, First Minister of Northern Ireland, called the £17m pledge a “slap in the face, ” saying the funding “doesn’t touch the surface of what is required. “
Christine Nicholls of Community Action Northumberland said the charity had been “banging on for years” that heating oil should be regulated and added, “I think extra support needs to go to everyone on heating oil, it’s really not clear how this money will get to the right people. ” Guy Renner‑Thompson, Conservative councillor for the Bamburgh ward in Northumberland, said the county council had been given “no detail on who the money should go to” and called the sum “paltry, ” noting “It doesn’t kick in until 1 April either, so that’s not going to help people who need to fill their tanks up now. ” Chris Addison of the Country Land and Business Association in Cumbria highlighted wider rural pressures including steep rises in red diesel and fertiliser prices.
Quick context
The crisis and resilience fund replaces the temporary Household Support Fund and will be administered by local authorities in England with devolved governments receiving direct allocations. Heating oil is not covered by Ofgem price caps, leaving users exposed to market swings.
What’s next
Local councils will now decide eligibility and distribution methods for the English allocation, and people who need help before 1 April can apply to councils but any cash would need to come from existing local budgets. The competition watchdog’s probe and the government’s promise to explore new protections mean legal or regulatory steps could follow if unfair practices are found, while devolved administrations will set their own approaches with their allocations. The unfolding response will be tracked by ministers and rural representatives as councils begin implementing the Crisis And Resilience Fund and work out who qualifies for immediate aid.
