£100 heating oil support scheme approved for more than 300,000 Northern Ireland households

More than 300,000 households across Northern Ireland are set to receive targeted support with soaring home heating costs after Communities Minister Gordon Lyons secured Executive backing for a £36.4 million package aimed at easing pressure on families reliant on oil.

Under the scheme, eligible households will be able to apply for a £100 prepaid card that can be used directly with heating oil suppliers, offering immediate help at a time when oil prices have surged dramatically.

The move comes as Northern Ireland faces acute pressure from rapidly rising fuel costs, with roughly two thirds of homes across the region dependent on oil heating — a far higher proportion than elsewhere in the UK.

Oil price surge leaves households under pressure

Announcing the support package, Minister Lyons said recent price rises had placed exceptional strain on households already struggling with the cost of living.

He said:

“With roughly two thirds of homes in Northern Ireland relying on oil heating, recent price increases of nearly 100% in just a few weeks have been especially punishing here.

“This measure will deliver targeted support to more than 300,000 households to help hard-pressed working families and vulnerable people struggling to meet essential heating oil costs.”

The support package is designed to respond directly to the sharp increase in heating oil costs, which the Minister said had risen by almost 100% in only a matter of weeks.

For many households, particularly as temperatures remain changeable and home energy bills continue to bite, the announcement will bring some relief.

Northern Ireland remains uniquely exposed to oil market volatility due to the scale of reliance on home heating oil, with an estimated 500,000 homes using oil as their primary heating source.

Who will qualify for the £100 prepaid card

The Department for Communities has identified several groups considered most vulnerable to the recent spike in heating costs.

Eligible households include:

• households in receipt of income-related means-tested benefits, including Pension Credit, Universal Credit and Income Related Employment and Support Allowance

• households receiving disability benefits

• pensioner households not receiving Pension Credit with an income below £30,000

• households with incomes below £30,000 that are not in receipt of income-related benefits

The scheme is designed to target support toward both low-income working households and vulnerable residents who may not currently be receiving traditional means-tested benefits.

This is expected to widen access beyond standard welfare-linked schemes and capture pensioners and lower-income households facing substantial heating bills.

£36.4 million package agreed by Executive

The total support package agreed by the Executive amounts to £36.4 million.

This includes:

• £17.2 million allocated by the UK Government

• £19.2 million in additional funding provided by the Northern Ireland Executive

The funding has been allocated to the Department for Communities, which will oversee delivery of the scheme.

The Minister said work is already under way to bring the scheme online as quickly as possible.

He said:

“My officials will work at pace to open the scheme and I will announce further details as soon as possible.”

No opening date for applications has yet been confirmed, but further details on eligibility checks, application processes and rollout timings are expected shortly.

Fuel poverty concerns deepen across Northern Ireland

The announcement comes against the backdrop of already severe fuel poverty levels across Northern Ireland.

Minister Lyons said that even before the latest spike in oil prices, 24% of households were already living in fuel poverty.

He added:

“With 24% of households already living in fuel poverty before the recent surge in oil prices, it is clear that the situation has only deteriorated.”

The latest rise in oil prices is expected to intensify hardship, particularly for older residents, disabled people and lower-income households in rural areas where oil heating is especially common.

The issue is particularly significant for towns and rural communities across counties including Antrim, where oil remains the dominant home heating source.

Longer-term plans to tackle cold homes

Alongside the immediate £100 support payment, the Minister also signalled broader plans aimed at tackling long-term fuel poverty and poor housing conditions.

He said:

“My ambition is to deliver lasting, meaningful support. Alongside this new measure, I will reform my Department’s Discretionary Support Scheme to ensure grant assistance is available to those in need, regardless of the type of home heating they rely on.

“In parallel, I am actively progressing work on a Warm Healthy Homes Fund to help make fuel poverty and cold, damp homes a thing of the past.”

The wider package suggests the Executive is seeking not only to respond to the immediate crisis in oil costs, but also to address structural issues around energy affordability and poor-quality housing stock.

For many households facing rising bills now, however, the immediate focus will be on when the £100 prepaid cards become available and how quickly support can be accessed.

At a glance

• £36.4 million heating oil support package approved by the Executive

• Eligible households can apply for a £100 prepaid card

• Support expected to reach more than 300,000 households

• Around 500,000 homes in Northern Ireland use oil heating

• Oil prices have risen by nearly 100% in recent weeks

• Funding includes £17.2m from UK Government and £19.2m from the Executive

• Eligible groups include benefit claimants, disabled households, pensioners and households earning under £30,000

• 24% of households were already in fuel poverty before the latest rise

• Further application details to be announced soon