Heating oil prices: £53m Government help and support fund for UK homes facing soaring household energy costs
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Yorkshire families facing soaring bills will be able to apply for targeted financial support through local councils 💷
- A £53 million Government package has been announced to help heating oil households
- The funding targets rural communities hit hardest by soaring oil prices
- England to get £27 million via local councils’ Crisis and Resilience Fund (CRF)
- Northern Ireland, Scotland, and Wales will also receive devolved funding
- The support comes as kerosene prices double, leaving many households exposed
Yorkshire households that rely on heating oil are set to receive targeted support from a £53 million Government package, as ministers respond to soaring fuel costs driven by global instability.
The funding is aimed mainly at rural communities where the use of oil heating is far more common, and where residents have been left particularly exposed to recent price spikes.
Why are heating oil bills rising so sharply?
Unlike gas and electricity customers, heating oil users are not protected by an energy price cap, meaning costs can rise sharply with little warning.
That vulnerability has come into sharp focus in recent weeks, with the price of kerosene, the fuel used in most oil-fired home heating systems, surging amid disruption linked to conflict in the Middle East.
In some cases, it has climbed to around double the price of crude oil, placing sudden pressure on household budgets.
Around 1.5 million homes across the UK depend on heating oil, many of them in rural regions such as parts of Yorkshire.
For those households, the Government’s announcement offers some reassurance, but accessing the support may not be automatic.
How will the Government distribute the funding?
In England, £27 million of the funding will be distributed through local councils via a new Crisis and Resilience Fund (CRF), which will replace the long-established Household Support Fund, and launch on Wednesday, April 1, 2026.
The scheme is designed to help low-income households most at risk, particularly those in danger of losing access to heating or hot water.
This means eligible residents may need to apply directly to their local authority for help. Councils are expected to prioritise urgent cases, although specific criteria and application processes are likely to vary depending on the area.
For those needing immediate assistance before April, councils may still be able to offer support, but only from existing budgets.
For residents relying on oil heating, the immediate priority is checking local council websites for guidance on the CRF application process.
Elsewhere in the UK, £17 million has been allocated to Northern Ireland, where reliance on heating oil is especially high, alongside £4.6 million for Scotland and £3.8 million for Wales. The devolved governments will oversee how that funding is distributed.
Could there be longer-term protections for heating oil users?
Alongside the financial support, ministers are also facing growing pressure to introduce longer-term protections for heating oil customers.
Unlike the regulated gas and electricity markets, the heating oil sector operates largely without direct price controls.
Some MPs have called for a temporary VAT cut on domestic heating oil, while others have suggested introducing a price cap similar to that used for mains energy.
Critics argue that oil-heated households are among the most “exposed and defenceless” when global prices spike.
For now, the Government has stopped short of tax cuts or caps, but says further action remains on the table.
Recent reports of suppliers cancelling deliveries and reissuing them at higher prices have fuelled anger among customers, some of whom have been forced to pay more or risk going without heating.
The Government has asked the Competition and Markets Authority (CMA) to investigate the sector following those, with Prime Minister Sir Keir Starmer warning that companies breaking the law could face legal action.
With global energy markets remaining volatile, ministers have indicated they are prepared to intervene further if the situation worsens.
With household expenses continuing to rise and energy bills still higher than pre-crisis levels, more people are turning to Utility Warehouse (UW) to save money. UW lets you bundle services like broadband, mobile, energy and insurance into one streamlined account—reducing hassle while unlocking multi-service discounts. The more you bundle, the more you save.
Customers benefit from a single monthly bill, up to £400 towards early exit fees, and access to cashback on everyday spending. UW also offers the UK’s cheapest variable energy tariff when bundled, helping shield households from further price hikes.