£35 per household: O’Dowd criticises limited heating oil support funding

Oil tanker

Finance Minister John O’Dowd has criticised a new funding package aimed at helping households with rising heating oil costs, warning the support could amount to just £35 per home in Northern Ireland.

The Minister said the £17.2 million allocated for heating oil support in 2026/27 is “disappointing and falls far short of what is needed”, given the region’s heavy reliance on oil for home heating.

His comments follow confirmation from the UK Government that funding will be provided to the Northern Ireland Executive to help households facing sharp price increases linked to the ongoing conflict in the Middle East.

High reliance on heating oil leaves households vulnerable

More than 60% of homes in Northern Ireland rely on home heating oil, according to Census data, equating to 480,636 households.

O’Dowd warned that this dependence leaves families particularly exposed when prices surge.

“While the Westminster Government has acknowledged the need for financial support for households facing steep increases in home heating oil costs as a result of the ongoing conflict in the Middle East, the £17.2 million allocated falls far short of what is required,” he said.

The Minister highlighted how the scale of the funding compares with the number of households affected.

“More than 60% of households here, over 480,600 homes rely on home heating oil and are therefore particularly vulnerable to the price shocks we have witnessed.

“On the basis of the support currently being offered by Westminster, this would amount to roughly £35 per household. I think people will be genuinely shocked and disappointed at how limited that support is.”

Heating oil prices surge

Recent data from the Northern Ireland Consumer Council shows the cost of home heating oil has risen on average by 90% between 26 February and 12 March.

The price spikes have been closely tracked by the consumer watchdog’s heating oil price monitoring system, highlighting the rapid increase households have faced in just a matter of weeks.

Targeted support for those most in need

Given the limited funding available, the Finance Minister said assistance may need to be focused on the lowest-income households.

“Given the limited funding from Westminster I think it’s only right and proper we target those on the lowest incomes,” he said.

O’Dowd added that he intends to press the UK Government for further help.

“I will be meeting the Chief Secretary to the Treasury later this week, where I will make clear that the Westminster Government must do more to support workers and families.

“This is particularly important given the high reliance on home heating oil here.”

Push for faster support

The Minister also confirmed he will begin discussions within the Executive to ensure any assistance is delivered quickly.

“I will be engaging with my Ministerial colleagues to ensure support is delivered quickly and makes a difference to those most in need,” he said.

The funding announcement comes as thousands of households continue to face rising energy costs, with heating oil remaining the dominant source of home heating across Northern Ireland.

At a glance

• The UK Government has allocated £17.2 million to support heating oil users in Northern Ireland in 2026/27.

• Finance Minister John O’Dowd says the funding “falls far short” of what households need.

• Northern Ireland has 480,636 homes using heating oil, around 60% of households.

• The funding could amount to around £35 per household if distributed evenly.

• Heating oil prices have risen by around 90% between 26 February and 12 March.

• The increase is linked to global energy pressures and the conflict in the Middle East.

• O’Dowd says support should focus on low-income households due to limited funds.

• The Minister will raise the issue with the Chief Secretary to the Treasury this week.

• Discussions are planned within the Executive to deliver support quickly to those most in need.