The price of heating oil continues to increase due to the cost-of-living crisis, something has to be done. This is why the UK treasury has announced a financial support package to help pay for heating oil for every household in the north. Read on to find out more about heating oil support and whether you are eligible for it.
Why would we be receiving this?
Chancellor Jeremy Hunt declared the original £100 alternative fuel payment would be doubled to £200 this winter. The Treasury will provide payments to all households, including those not using oil and already receiving gas assistance. Currently, this package is available only to residents of Northern Ireland, with plans to extend it to Scotland and the rest of the UK.
Questions still remain on how the money will actually be distributed to individuals; the most likely method could see it reflected in the form of electricity credit over the coming months. What we do know is that the £200 will effectively top up the £400 payment already due to every home.
Home Heating Oil
In Northern Ireland, around two-thirds of households use kerosene. The decision to proceed with the package simplifies the process and avoids an extensive and costly means-tested scheme for households that use home heating oil.
The £100 payment announced as part of the Energy Price Guarantee (EPG) scheme offers discounts to electricity and gas customers. The EPG will provide an estimated £254 to £504 in savings for the average gas-fired household.
Heating Oil Support
Jeremy Hunt said the heating oil support scheme will be extended for 12 months, starting in April. The Chancellor announced benefit packages to support those affected by the cost-of-living crisis. This includes £900 for households on means-tested benefits, £300 for pensioner households, and £150 for individuals on disability benefits.
The Russian invasion of Ukraine in February has made sourcing heating oil difficult, leading to higher costs for customers in the north. The Consumer Council reports the average price of 500 litres this week is £442.40, which is 65% higher than the same week in 2021.
The consumer body estimates the standard household consumes between 1,800 litres and 2,700 litres of home heating oil per year. Based on current prices and depending on usage, the £200 support could cover between 30 to 45 days of heat.
Contact OilMaxx Today
OilMaxx will ensure that you are kept warm in your times of need – at competitive prices.
Contact your local depot today and let us know if you need heating oil support.