As energy prices continue to rise and the UK transitions toward cleaner energy sources, heating oil users—particularly those in rural and off-grid areas—often find themselves at a disadvantage. With over 1.5 million households in the UK relying on heating oil to keep their homes warm, many wonder what government support is available to ease the financial burden. Fortunately, there are several help schemes designed specifically for heating oil users or inclusive of them. This article explores these schemes in depth, highlighting eligibility, application processes, and how to maximise your benefits.
1. Understanding the Heating Oil Challenge in the UK
Most UK homes are connected to the gas grid, but rural regions—particularly in Northern Ireland, Scotland, and parts of Wales and England—rely on alternative fuels like kerosene (heating oil). These households often face:
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Volatile oil prices
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Higher delivery charges
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Limited supplier competition
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Lack of government regulation compared to gas or electricity markets
Because of these factors, the UK Government recognises the need to offer specific or inclusive help to heating oil users.
2. Alternative Fuel Payment Scheme (AFP)
One of the key schemes introduced recently is the Alternative Fuel Payment (AFP).
What is AFP?
The Alternative Fuel Payment scheme was launched by the UK Government as part of its wider energy support package in response to the energy crisis of 2022–2023. It provided a one-off payment of £200 to households that use alternative fuels like heating oil, biomass, or LPG.
Who Qualifies?
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Households not connected to the mains gas grid
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Users who primarily heat their homes with heating oil or similar fuels
How Was It Delivered?
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Most eligible customers received the payment automatically through their electricity supplier.
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For those who didn’t receive it automatically (e.g., homes without a domestic electricity connection), a manual application process was made available via GOV.UK.
Though the scheme was one-off, it sets a precedent for future support during periods of high energy prices.
3. Cold Weather Payment
If you receive certain benefits, you may qualify for the Cold Weather Payment—a government initiative that provides financial assistance when the temperature drops.
How It Works:
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£25 is paid for each 7-day period of very cold weather (0°C or below) between 1st November and 31st March.
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The payment is automatic if you’re eligible.
Eligibility:
You must be receiving one of the following:
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Pension Credit
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Income Support
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Universal Credit (under specific conditions)
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Income-based Jobseeker’s Allowance
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Income-related Employment and Support Allowance
Though this is not specific to heating oil users, rural homes are more likely to experience cold spells, increasing the likelihood of triggering these payments.
4. Winter Fuel Payment
This is a tax-free annual payment for older people to help with heating costs.
Amount:
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Between £250 and £600, depending on your age and circumstances
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It includes a “Pensioner Cost of Living Payment” which varies yearly
Eligibility:
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Born on or before a specified date (e.g., 24 September 1957 for Winter 2024–2025)
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Usually receive the payment automatically if you receive State Pension or certain benefits
Heating oil users in colder, off-grid homes can benefit significantly from this support to cover winter refills.
5. Energy Company Obligation (ECO) Scheme
While primarily designed for energy efficiency, the ECO4 Scheme can help heating oil users reduce consumption through home upgrades.
What It Offers:
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Free or subsidised insulation
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Heating system upgrades
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Renewable heating solutions
Eligibility:
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Households on certain benefits or low-income households
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Private renters and homeowners
Though not fuel-specific, this scheme is particularly valuable for those using expensive fuels like heating oil, as it helps reduce overall consumption.
6. Local Authority & Devolved Government Support
Northern Ireland:
Home to the highest percentage of heating oil users in the UK, Northern Ireland often offers additional schemes such as:
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Affordable Warmth Scheme
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Boiler Replacement Scheme
Scotland:
Scotland offers support through:
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Home Energy Scotland Grant and Loan Scheme, which includes heating upgrades and renewable options
Wales:
Programs such as Nest offer free home energy efficiency improvements for eligible households.
Each devolved administration may offer slightly different programs, so it’s important to check local council or government websites.
7. Oil Buying Clubs and Local Initiatives
While not government-funded, many councils and community organisations support oil buying clubs, where households group together to buy heating oil in bulk at discounted rates. These initiatives:
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Increase purchasing power
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Reduce delivery costs
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Promote fuel security for vulnerable residents
Local authorities may help promote or organise these schemes, making them a valuable resource in the absence of direct subsidies.
8. How to Maximise Government Help
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Register for benefits: Many payments are tied to benefits like Pension Credit or Universal Credit. If you qualify but haven’t applied, you may be missing out.
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Apply early: Schemes like ECO can take time to assess and complete installations.
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Track your deliveries: Keep records of oil purchases, especially if applying for AFP-type schemes in future.
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Talk to your council: Local authorities often know of regional schemes not advertised nationally.
Final Thoughts
While heating oil users have traditionally received less attention in the UK’s energy policy compared to grid-connected households, the government has made strides in offering targeted and inclusive support. From one-off payments to long-term energy efficiency programs, a variety of schemes exist to help households cope with rising heating costs.
For those relying on heating oil, staying informed and proactive is key. Whether it’s through direct government aid or regional initiatives, support is available—it’s just a matter of knowing where to look and how to claim it.
