Starmer Announces £53m Heating Oil Support Through Crisis And Resilience Fund

The government has unveiled a £53m support package for vulnerable households hit by sharp rises in heating oil costs, to be distributed in England the Crisis And Resilience Fund and allocated directly to devolved administrations elsewhere in the UK.

What the Crisis And Resilience Fund Will Do

The £53m package will be targeted at low-income households in rural communities that rely on heating oil, with local councils in England deciding eligibility and distribution. In England, the extra cash will be distributed by local authorities through the Crisis And Resilience Fund when it comes into effect on 1 April, replacing the temporary Household Support Fund. Funding will be given to councils in proportion to the number of heating oil users and is intended to help people at immediate risk of losing hot water.

If people need help before the fund starts in April, they can apply to local councils, but any emergency cash would have to come from existing local budgets. The Local Government Association has said that heating oil is already covered in guidance for councils under both the outgoing Household Support Fund and the new Crisis And Resilience Fund and that it had not been made aware of changes to how the schemes are applied.

The government said money for Scotland, Wales and Northern Ireland will be allocated directly to the devolved governments, with the expectation it will be used to support vulnerable households. The distribution by nation is: England £27m, Northern Ireland £17m, Scotland £4. 6m and Wales £3. 8m.

Rural MPs, Charities and Devolved Leaders Say Funding Is Insufficient

MPs and charities representing rural communities warned that a lack of regulation in the heating oil sector has left households exposed to sudden price spikes. One MP said he was “shocked and angered” by the impact of the recent price rise and blamed poor regulation. Charities said they had long called for heating oil to be regulated and urged the reinstatement of the Alternative Fuel Payment, a £200 grant that was withdrawn in April 2024.

Concerns include the speed with which higher wholesale costs have been passed to consumers: industry representatives note many suppliers buy fuel at market price almost daily, a practice that has helped push up retail charges. Unlike gas and electricity, household prices for oil are not covered by the regulated price cap.

In Northern Ireland, where around 500, 000 homes use oil, the pledged £17m was described by the region’s First Minister as “a slap in the face, ” and Sinn Féin’s vice-president said the funding “doesn’t touch the surface of what is required. ” Local councillors and campaigners called the sum paltry relative to need and noted the support does not begin until 1 April, leaving households facing immediate refill costs in the short term.

Political and Fiscal Constraints Behind the Targeted Approach

Officials framed the package as a targeted intervention aimed at those most exposed to the warming-fuel shock, rather than a universal bailout. The prime minister said the policy reflects a commitment to protect household finances while avoiding unsustainable spending. The government also signalled it is exploring new protections for heating oil customers, since the sector is not regulated by the main energy regulator.

Observers warned that broader, more expensive measures would present fiscal trade-offs. Energy ministers said they remain committed to tackling cost-of-living pressures and are planning measures to protect customers from unfair practices. At the same time, ministers face pressure to balance support with broader public finances, and options for further interventions will be weighed in the weeks ahead.

About 1. 5 million UK households use heating oil, the issue being particularly acute in Northern Ireland where almost two-thirds of households rely on it. In Great Britain, roughly 3. 6% of households use heating oil — around 760, 000 in England, 140, 000 in Scotland and 110, 000 in Wales — figures which officials say guided the allocation of the new funding.

Ministers also said the competition regulator has launched a probe into concerning reports in the sector and that if companies have broken the law, legal action will follow. For now, the announced package and the rollout timetable set out the immediate path for delivering help to those most at risk of losing essential heating and hot water this winter and into the spring.