Government announces £53 million support package for heating oil households

The government announced a £53 million support package for households affected by rising heating oil costs, the Chartered Trading Standards Institute said in a statement published on 16 March 2026¹. The Institute said it welcomed the announcement, having long called for targeted support for consumers who rely on heating oil¹. Age UK also referred to "the Government's announcement this week providing £53m of support for oil heated households"².

Heating oil is not covered by Ofgem's energy price cap, leaving consumers fully exposed to sudden market increases¹. CTSI said the price for heating oil had risen by almost 110% over the past week, describing it as a knock-on effect of the ongoing conflict in the Middle East and fluctuating oil prices¹. Age UK gave one example: a householder paid £400 for a full tank of oil in January 2026 and £800 when refilling in March². Which? reported that in June 2026 the average price for kerosene was more than £1 a litre, the highest in the eight years it has monitored prices³.

The number of homes affected differs by nation. CTSI said that in England and Wales over 860,000 homes rely on heating oil, and that in Wales roughly 28% of rural homes use it as their primary heating source¹. In Northern Ireland, it said, the use of bulk fuel jumps to over 60% of homes relying on heating oil as their primary source of heating, with more than 800 heating oil tankers operating across the province¹. Age UK put oil heating systems across the UK as a whole at around 1.5 million homes².

CTSI also raised a separate concern about whether deliveries are accurately measured. It said meter measuring systems on tankers determine the quantity of fuel delivered, and that Trading Standards officers are responsible for checking that these systems are accurate and properly sealed¹. Data submitted through the statutory Section 70 Weights and Measures returns shows that in 2024 to 2025 only 13 out of 189 local authorities in Great Britain reported inspecting any bulk fuel tankers¹.

"Most Trading Standards Services across Great Britain lack the specialist equipment and facilities required to carry out effective bulk fuel inspections. With recent rapid increases in fuel prices, it is more important than ever that UK consumers can be confident they are receiving exactly what they pay for."

The Department for Energy Security and Net Zero later described the package as "funding worth over £50 million to support low-income families reliant on heating oil", and said the government had committed to introducing new consumer protections to the sector⁴. Energy Secretary Ed Miliband told Uswitch the government had "also made available an extra £50 million to local authorities for those who are really in financial difficulties"⁵. The published figures therefore differ: £53 million in the CTSI and Age UK statements, and over £50 million in the government's own wording¹.

Why it matters for households

Heating oil sits outside the price cap that applies to mains gas and electricity, so a household buying oil carries the full effect of a price movement between one delivery and the next¹. The support is aimed at households in financial difficulty rather than at the price itself, and the sources describe different routes to it in each nation. In England, local authorities are distributing support through the Crisis and Resilience Fund, which sets its own eligibility criteria, the type and amount of support, and when it is available³. In Northern Ireland, more than 300,000 households are expected to get £100 towards their heating oil bills, but the scheme had not opened and the application process had not been announced³. In Scotland, the Scottish Emergency Oil Heating Scheme is run by Advice Direct Scotland³. In Wales, households in fuel poverty can get up to £750 towards off-grid fuel costs through the Discretionary Assistance Fund³.

For a home that depends on a delivered fuel, independence from price shocks rests on the tank, the boiler and the tariff rather than on a regulated unit price. Which? reported that a £9,000 grant towards an air or ground source heat pump for homes replacing oil or LPG heating became available from 21 July, for properties in England and Wales, with grants of up to £7,500 already available for replacing other fossil fuel systems such as gas³. Age UK also noted that VAT will be temporarily reduced from 5% to 0% on electricity bills from 1 October 2026 until 31 March 2027⁶.

What happens next

Age UK said the level of the energy price cap will be announced by Ofgem towards the end of May². The government said action taken at the Budget saw the price cap fall by 7%, supporting households with lower bills until the end of June⁴. On 22 April the government set out reforms to Ofgem's remit, including stronger powers to enforce consumer law directly and powers to ban energy executives' bonuses if they break the rules, and said Ofgem's responsibility for oversight of home upgrade schemes would move to the Warm Homes Agency⁴. Which? reported that when and how households will be able to apply for the Northern Ireland £100 payment had not been announced³.

Sources6 cited

1. [](https://www.tradingstandards.uk/news-policy-campaigns/news-room/2026/cost-of-living-pressures-and-soaring-prices-expose-gaps-in-bulk-fuel-checks/), tradingstandards.uk
2. More than one in four (28%) pensioners said they were struggling financially before war broke out in Iran – with energy being the main issue, ageuk.org.uk
3. New £9,000 heat pump grant for heating oil homes launches. Are you eligible? - Which?, which.co.uk
4. Ofgem transformed to strengthen protections for energy consumers - GOV.UK, gov.uk
5. Government determined to “fight people’s corner” on energy, Miliband tells Uswitch - Uswitch, uswitch.com
6. Government help with energy bills – cost of living | Age UK, ageuk.org.uk