Middle East war: Government pledges millions to help rural households with soaring heating oil bills
Households in England that rely on heating oil are set to get £27m to help with bills as prices soar due to the war in the Middle East, the Prime Minister has announced.
Sir Keir Starmer made the intervention this morning after customers raised concerns that their costs had almost tripled in the three weeks since the US and Israel began bombing Iran.
In a press conference in Downing Street, the Prime Minister said: “I'm announcing immediate support for vulnerable heating oil customers today, providing £53m for those households that are most exposed.”
This will see £27m go to households in England, £17m to people in Northern Ireland, where more than half of houses use heating oil, and £8.4m to Scotland and Wales.
Some 1.5m households in the UK use heating oil, which is particularly prevalent in rural areas.
In the Upper Dales around 50 per cent of homes use the fuel, while two in five households around Masham, Leeming and in North Richmondshire also need kerosene to heat their homes.
Unlike gas and electricity, the price of heating oil is not covered by Ofgem’s price cap, which means these people are particularly exposed to price hikes.
Kerosene, the fuel used for heating oil, has been particularly impacted by Iran’s blockade of the Straits of Hormuz, a narrow waterway out of the Gulf.
Chancellor Rachel Reeves said: “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 £50m 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.”
In England, the support will be delivered by local authorities through the Crisis and Resilience Fund.
Energy Secretary Ed Miliband added: “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.”
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The Prime Minister also revealed the Government is looking at long term measures to prevent the dramatic fluctuations seen with heating oil prices over the last few weeks.
He said: “The CMA [Competition and Markets Authority] reported largely what every heating oil customer already knows - these are accounts of suppliers canceling orders and jacking up prices.
“Now, that kind of conduct is completely unacceptable. So if the companies have broken the law there will be legal action, and because it's clear this market is under regulated, we're going to put that right to ensure customers get a better deal.”
The Treasury said this would include a strengthened code of practice, stronger consumer protections and the potential for the appointment of a regulator for the industry.
In his press conference Sir Keir also said he is working with allies on a plan to reopen the Straits of Hormuz, although so far he has resisted Donald Trump’s demands to send in the navy.
He said: “We’re working with all of our allies, including our European partners, to bring together a viable collective plan that can restore freedom of navigation in the region as quickly as possible and ease the economic impacts.”
The Prime Minister discussed the issue with Mr Trump on Sunday.
The US president has warned the future of Nato could be at stake unless allies agreed to his demand to provide ships.
The UK could potentially send mine-hunting drones to the region rather than a warship, although Sir Keir insisted no final decisions had been made.