£53m heating oil aid announced as rural fuel costs soar

Rural campaign groups have welcomed a £53m government support package for households reliant on heating oil, but warn families in off-grid areas still need urgent clarity on how the help will be delivered.

Prime Minister Sir Keir Starmer announced the funding on Monday (16 March) to support households that rely on heating oil, many of which are located in rural areas where homes are not connected to the mains gas network.

The announcement comes after heating oil prices doubled in some areas following the escalation of conflict in the Middle East, placing sudden financial pressure on households already facing rising living costs.

Millions of rural homes are not connected to the mains gas grid and rely on heating oil to keep their homes warm. Around 1.5 million households depend on it, leaving them outside the protection of the energy price cap.

Off-grid heating is particularly common in rural areas where mains gas infrastructure is limited, making countryside communities especially vulnerable to volatile fuel prices.

Tim Bonner, chief executive of the Countryside Alliance, said the financial support was welcome but warned it must reach struggling households quickly.

“£53 million in support is welcome, but Ministers will need to ensure that help arrives quickly for the households that need it most,” he said.

Mr Bonner said rural poverty often receives less attention but is driven by inequalities such as higher fuel and transport costs.

“Rural poverty often goes unseen, but it is driven by exactly this sort of inequality,” he said.

He also welcomed government commitments to take action against suppliers accused of cancelling fuel orders and sharply increasing prices, as well as the extension of the fuel duty freeze.

“The commitment to take legal action against suppliers who cancelled orders and hiked prices is significant, and the fuel duty freeze until September is vital for rural households, where driving is essential for work, healthcare, and daily life,” he said.

The Country Land and Business Association (CLA) also welcomed the funding but warned that rural households remain under significant financial pressure.

CLA president Gavin Lane said heating oil prices had risen sharply in recent days.

“No one should have to choose between heating their home or plunging into debt,” he said.

“Yet in rural areas, those using heating oil have seen their prices double in the last ten days suddenly putting them under huge, unplanned financial pressure.”

Mr Lane said the government’s intervention was necessary but warned additional support could be required if prices remain high.

“The government's response is to be welcomed but, if this crisis drags on, it might not be enough,” he said.

“Those in the countryside with no alternative will be hit hardest.”

He also urged ministers to monitor the market closely to ensure suppliers do not take advantage of the situation.

“The government needs to keep a close eye on those seeking to take advantage and ensure families aren't left worrying about affording to heat their homes.”

Campaigners also warned that other off-grid households must not be overlooked when support schemes are developed.

Around 200,000 rural homes rely on LPG rather than heating oil, yet these households were not included in the Prime Minister’s announcement.

Like heating oil users, they face volatile fuel prices and limited access to alternative energy sources.

The announcement also comes amid warnings from police forces about a rise in heating oil thefts in rural areas.

Several forces have urged households to secure oil tanks and consider installing security measures following reports of thefts targeting country properties.

In Nottinghamshire, two men were arrested last week on suspicion of stealing heating oil.

The Countryside Alliance said it has raised concerns about the wider impact of energy price increases directly with government and is urging ministers to ensure support reaches all vulnerable off-grid households.