by Bill Heaney
The UK Labour government is providing over £4.5 million to help Scottish families struggling with soaring heating oil costs and has called for swift action from the Scottish Government.
- Chancellor confirms £4.6 million for low income families in Scotland who heat their homes with oil to help tackle surging prices. The Labour Government is now calling for swift action from the Scottish Government to ensure this money reached affected families as quickly as possible.
- The price of kerosene – the fuel used for heating oil – has been especially affected by the conflict in the Middle East and has risen faster than other fuels such as petrol and gas.
- Government announces intention to regulate heating oil sector to introduce new consumer protections, alongside securing agreement with industry to quickly improve customer experiences.
The UK Government has committed £4.6 million to help people pay for the rising cost of heating oil. With winter drawing to a close, and families struggling with the rising price of heating oils, this government is committed to helping ensure that vulnerable families across Scotland are able to heat their homes and access hot water.
The UK Government is passing this funding to the Scottish Government to deliver to affected households through existing programmes and is today calling for the SNP lead Scottish Government to ensure this money is passed to Scottish families as quickly as possible.
The price of kerosene – the fuel used for heating oil - has been particularly impacted by the conflict in the Middle East and is currently double that of crude oil.
Unlike gas and electricity customers, those who heat their homes with oil are not covered by the energy price cap, meaning they are exposed to more immediate energy price hikes.
Many, including some of the most vulnerable households, will need to pay an upfront lump sum to top up their tanks in order to maintain their heating and hot water.
Heating oil is different from other sectors in the energy market as it does not have the same consumer protections and is not regulated by Ofgem. The government intends to introduce new consumer protections for heating oil customers and is rapidly exploring new ways to step in and ensure households are better protected.
This includes:
- An agreement secured with industry on a strengthened Code of Practice to rapidly provide enhanced protections to customers, including greater flexibility on delivery volumes and improving price transparency and formalising a Priority Customers Register – meaning all customers who are vulnerable are eligible for prioritised support in times of disruption.
- Introducing stronger consumer protections in the heating oil market, which could cover dispute resolution, a greater variety of repayment options for those facing hardship, greater price transparency and enhanced protections for vulnerable groups such as the elderly.
- Supporting the Competition and Markets Authority’s plans to carry out a more comprehensive examination of the UK’s heating oil industry.
- Exploring the creation of a new ombudsman or appointment of a regulator, such as Ofgem, to champion consumers, and taking powers to do so through the Energy Independence Bill.
“The SNP led Scottish Government must act quickly and decisively to make sure this money reaches the pockets of families as soon as possible.”
Energy Consumers Minister Martin McCluskey MP said: “Heating oil prices have spiked sharply, and I know that for families in rural communities across Scotland, that is a real and urgent problem.
”This government is committed to fighting people’s corner and tackling the affordability crisis head on by putting over £4.6 million of support to help people across Scotland who need it most.
“The funding will be passed to the Scottish Government and they now need to move at pace to deliver this help to families across the country. In England, this funding will be available from April 1st – people across Scotland should not have to wait any longer.”