The Domestic Alternative Fuel Payment (AFP) scheme opened on 6 February 2023, with around 2 million households across Great Britain eligible for £200 towards their energy bills1. The payment is for homes that do not use mains gas for heating, including those using heating oil, biomass and liquefied petroleum gas (LPG)1. Most eligible households receive the money automatically as a credit on their electricity bill during February, and the government said completion within the month depends on the customer's supplier and how they pay their bills1.
A small minority of households must apply instead. This group includes people living in park homes or on static houseboats with no direct energy supplier, and those on the gas grid but without a gas connection who use alternative fuels as their main heating source1. Applications go through the Alternative Fuel Payment Alternative Fund (AFPAF) portal on gov.uk, which was due to open later in February 20231. The government said customers should take no action until the portal launches, and that the process will require household bank details to be entered on the gov.uk portal1. It warned that customers will not be asked for details by any individual or organisation before this or outside the portal, and that any such contact is likely to be a scam1.
Graham Stuart, Minister for Energy and Climate, said:
"Our main energy bill support schemes have seen millions of homes and businesses across the country get much needed help to cover costs, with figures today showing nearly £3 billion in government support has been paid out to business to date. Now we're getting support to those remaining few that are off the gas grid and most difficult to reach."
The government said domestic AFP support was doubled to £200 in the Autumn Statement to help with rising fuel costs1. Eligibility for the automatic payment was determined using GB postcodes with no active gas meter connection as of 13 December 2022, census data on heating type, and a Meter Point Access Number (MPAN) report produced by the Retail Energy Code, accurate as of February 20231. Electricity suppliers were given a list of eligible households identified by MPAN1.
Businesses and other non-domestic customers using alternative fuels were also covered. From Wednesday 8 February 2023, suppliers could begin making payments to businesses and public and voluntary sector organisations that use alternative fuels to heat their buildings, with a £150 credit under the Non-Domestic Alternative Fuel Payment scheme (ND-AFP)1. The government said suppliers will deliver this support up to 10 March, with most customers expected to receive it later in February, and that there is no need to contact a supplier1. Eligible organisations include shops, offices, libraries, schools, hospitals, factories and farms1.
| Payment | Amount | Who receives it | How it is delivered |
|---|---|---|---|
| Domestic Alternative Fuel Payment | £200 | Households in Great Britain not using mains gas for heating | Automatic credit on electricity bill, or application via gov.uk portal for a small minority1 |
| Non-Domestic Alternative Fuel Payment | £150 | Businesses and public and voluntary sector organisations using alternative fuels | Credit delivered by electricity suppliers up to 10 March1 |
Why it matters for households
For homes off the mains gas network, heating costs are tied to fuels bought separately from a standard gas supply, such as heating oil, LPG or biomass. The £200 arrives as a credit against electricity, not against the fuel itself, so it reduces the overall bill rather than the price of a delivery of oil or a cylinder of gas. Households that buy fuel in bulk, or that share a supply through a park home or houseboat site, are the ones most likely to fall outside the automatic route and need the portal. The government's own figures place the AFP alongside the Energy Price Guarantee, which it says is saving a typical UK household £900 over the winter, and the Energy Bills Support Scheme, which provides a further £400 off electricity bills through monthly discounts of £66 or £671. For a home with no gas connection, the £200 is additional to those electricity-based discounts.
What happens next
The AFP Alternative Fund application portal on gov.uk was due to open later in February 2023, alongside further information on which households need to apply1. Non-domestic payments are to be delivered up to 10 March 20231. The Energy Bill Relief Scheme, which subsidises wholesale electricity and gas prices for non-domestic customers, runs until the end of March and will be replaced by the Energy Bills Discount Scheme from April, which the government describes as universal support at a reduced rate1.