The Department for Work and Pensions will make a small amendment to the scheme guidance for the Crisis and Resilience Fund so that support can be provided to households in crisis due to the increase in heating oil prices1. The change was set out in a letter dated Monday 16 March 2026 from Alison McGovern MP, Minister of State for Local Government and Homelessness, and Rt Hon Dame Diana Johnson DBE MP, Minister for Employment, to council leaders1. The letter states that the Prime Minister announced targeted support for low-income heating oil households who are being impacted by the spike in costs1.
An additional £53 million of financial support will be allocated across the nations of the UK, accounting for the distribution of households reliant on heating oil across the country1. In England, £27 million will be delivered via the Crisis and Resilience Fund to areas with higher rates of heating oil, such as rural communities1. The letter says the government has identified recipient local authorities and that allocations are set out in an annex1. The largest top up allocation listed is £3,055,625 for Norfolk, followed by £1,825,511 for Lincolnshire and £1,717,048 for Suffolk; the smallest is £2,556 for the Isles of Scilly1.
The letter says funding should be made available from today to those in acute need should councils receive requests for support, and that authorities will receive funding next financial year as part of their Crisis and Resilience Fund payment, delivered through the 2026/27 Local Government Finance Settlement1. It states there will not be additional conditions placed on this funding and no additional reporting will be required on how it has been spent1.
On how the money reaches households, the letter says authorities should consider the likely effects of the spike in heating oil costs on their residents, including which types of residents will be most affected, and whether residents would be eligible for Crisis Payments1. This could be via application processes, or through targeted support if it is known which residents are likely to be in crisis1.
"The Department for Work and Pensions will make a small amendment to the scheme guidance to reflect that support can be provided to households in crisis due to the increase in heating oil prices."
The letter also states that fuel forecourt levels remain above the average stock threshold, 40% across England, and that the Department for Energy Security and Net Zero is continuing to engage with industry to ensure supply and pricing for oil prices remains resilient1. It does not set out the current price of heating oil, the number of households affected, or how individual households apply; those details have not been reported1.
Why it matters for households
For homes off the gas grid, heating oil is bought in bulk, so a price spike lands as a single large bill rather than a monthly charge, and a household can face losing immediate access to heating or hot water1. The Crisis and Resilience Fund is designed for vulnerable households facing financial difficulties as a result of a sudden unexpected expense1. The guidance amendment matters because it confirms that a heating oil price rise counts as the kind of crisis the fund can address, which is the route by which crisis funds, hardship grants and energy debt help can be used for this purpose. Because the money is paid to councils rather than to households directly, whether a home sees support depends on its local authority's approach, and the letter leaves the method open between application processes and targeted support1. Households in vulnerable and medically dependent circumstances are the group the letter identifies as facing immediate financial hardship1. Support under the separate NISEP oil heating scheme is not mentioned in the letter1.
What happens next
Funding is expected to reach councils next financial year through the 2026/27 Local Government Finance Settlement, while the letter says funding should be made available from 16 March 2026 to those in acute need should councils receive requests for support1. The Department for Work and Pensions has said it will make the guidance amendment; no date for that amendment is given1.
Sources1 cited
- Crisis and Resilience fund to support low-income heating oil households, assets.publishing.service.gov.uk