£17m heating oil support confirmed for Northern Ireland as UK announces £50m package

Families across Northern Ireland are set to receive a share of a new £50 million support package aimed at helping households struggling with soaring heating oil prices.

The UK Government has confirmed that £17 million will be allocated to Northern Ireland, where reliance on heating oil is significantly higher than in other parts of the UK, leaving many families exposed to sudden price spikes.

The announcement comes as kerosene — the fuel used in most home heating oil systems — has surged in price, driven partly by instability in the Middle East and wider global energy pressures.

Rural households hit hardest

Heating oil is widely used in rural areas and, unlike gas and electricity, it is not currently covered by the energy price cap. This means households can face immediate and unpredictable increases in cost.

Many families must also pay large upfront lump sums to refill their tanks, creating additional pressure for those already struggling with the cost of living.

Chancellor Rachel Reeves said the government recognised the particular challenges faced by households relying on oil heating.

“Heating oil prices have spiked sharply, and I know that for families in rural communities that is a real and urgent problem.

“That’s why we’re putting over £50 million of support to help the people who need it most, including funding for the Northern Ireland Executive to deliver support in Northern Ireland where this issue hits hardest.”

Funding split across the UK

The £50 million support package will be distributed across the UK based on where oil heating is most common.

The allocation includes:

• £27 million for England

• £17 million for Northern Ireland

• £4.6 million for Scotland

• £3.8 million for Wales

Funding has been calculated using census data to reflect areas where the greatest number of households rely on oil heating.

In England, the support will be distributed through local authorities using the Crisis and Resilience Fund, which comes into effect from 1 April. Devolved administrations will distribute support in their own regions.

New consumer protections planned

Alongside the financial support, the government has announced plans to introduce stronger consumer protections in the heating oil market, which currently operates without a dedicated regulator.

Proposals under consideration include:

• stronger dispute resolution processes

• more flexible repayment options for households facing hardship

• improved price transparency

• enhanced protections for vulnerable customers such as the elderly

An industry agreement has already been secured to strengthen a Code of Practice, which will include greater flexibility on delivery volumes and a formal Priority Customers Register to ensure vulnerable households receive support during supply disruptions.

Energy Secretary Ed Miliband said the measures are part of a broader effort to tackle cost-of-living pressures.

“This government is committed to fighting people’s corner in tackling cost of living pressures.

“With this investment, alongside new measures to protect customers against any unfair practices, we are standing up for the British people.”

Competition watchdog investigating price spikes

The Competition and Markets Authority (CMA) is also examining reports of sharp price increases in the heating oil market.

Officials are investigating claims that some customers experienced cancelled orders followed by higher quotes, as well as increased prices for automated deliveries.

The watchdog announced on 14 March that it will carry out a more detailed examination of the sector.

Earlier in the week, the Chancellor also wrote to the CMA urging it to remain vigilant and take action if unjustified price rises are identified.

The government has said it will not tolerate profiteering or unfair practices, and is encouraging customers to report evidence of price manipulation.

Help available for struggling households

Households facing immediate financial pressure due to heating oil costs are being encouraged to contact their local council to find out what support may be available.

The government also confirmed it is working with the Northern Ireland Executive to ensure any new protections introduced are suitable for households that rely heavily on heating oil.

At a glance

• The UK Government has announced over £50 million in support for households facing rising heating oil costs.

• £17 million will go to Northern Ireland, where oil heating is widely used.

• Heating oil is not covered by the energy price cap, leaving households exposed to price spikes.

• Kerosene prices have surged, partly due to global tensions affecting energy markets.

• The Competition and Markets Authority is investigating reports of price increases and cancelled orders.

• The government plans to introduce new consumer protections in the heating oil sector.

• Proposed measures include improved price transparency and support for vulnerable customers.

• Households in financial difficulty are encouraged to contact their local authority for assistance.