Scotland to receive £4.6m from UK Government in heating oil support

Citizens Advice Scotland said the Prime Minister’s £53 million support package, £4.6 million of which will go to Scotland, fails to meet the scale of the problem.

The Poverty Alliance SPA warned that off-the-grid Scots may receive just £35 in support.

The fund was announced by the UK government but will be up to the Scottish government to administer.

Around 130,000 homes in Scotland use heating oil, the price of which has risen sharply since the US and Israeli war against Iran.

The Poverty Alliance said that if a similar approach to the one taken during the last energy crisis in the winter of 2023, where off-grid households were given £200 to pay for heating oil, is taken, the current support could amount to just over £35 per household.

Peter Kelly, the charity’s chief executive, said: “In a just and compassionate Scotland, everyone should be able to heat their home without fear of choosing between warmth or food on the table – but households relying on heating oil are facing sharp price increases as a result of the war in the Middle East.

“We’re pleased that the UK Government has listened to campaigners and put some support in place.

“We look forward to seeing the details of how the money will be spent – but looking at the headline costs, we are worried it won’t be enough to give people the help they need.”

Citizens Advice Scotland (CAS) said households, particularly those in island and rural communities, were “desperately worried” about the price spike.

It said the current “crisis” caused by war in the Middle East was “another blow to their already stretched finances”.

“Recent events have once again exposed the exposed the precarity that is baked into our energy system,” CAS director of impact David Hilferty said.

“The system is broken. Today the focus is on people who use oil to heat their homes, but for gas and electricity users too, the Ofgem price cap is not providing adequate cover and only guaranteed until July.

“The UK Government must do more. We desperately need an energy system that works for everyone. The need for long-term, consistent support that affords people financial stability and peace of mind is abundantly clear.“

Both CAS and the Poverty Alliance called for a social tariff on energy bills, with CAS also calling for energy debt to be written off.

The Poverty Alliance also warned that energy bills could double when the current cap comes to an end in June, forcing more families into fuel poverty.

Age UK said the current funding for heating oil support was “unlikely to match the scale of the challenge” and warned older people in the UK are already struggling with their bills.

SNP MSP Karen Adam said any support was welcome, but added: “This is a drop in the ocean and after talking it up all weekend, the level of cash delivered here is far from enough from the Labour UK Government.”

Scottish Secretary Douglas Alexander said the cash will ensure families in Scotland are protected from the soaring price of heating oil.

He said the 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 added: “In England, this funding will be available from April 1 – people across Scotland should not have to wait any longer.”

A Scottish government spokesperson said: “We welcome that the UK government has begun to heed this call and has confirmed that extra support will be provided. This cannot be the end of the action that is taken by the UK government, as these households will continue to require protection from price volatility in this area.

“We will swiftly analyse the specifics of what limited extra funding is being proposed and will work at pace to assess how it would be best distributed. We will set out the details of this soon.”

Iran has responded to the US and Israeli strikes by blocking the Strait of Hormuz - a strategic body of water where 20 per cent of the world’s oil passes.

The result is an increase in the cost of heating oil. It is not covered by Ofgem’s energy price cap, which is set to fall next month.

Scottish Conservative MP Harriet Cross said: “Labour’s support for heating oil customers must get to struggling households as a matter of urgency, and it must seek to make a difference to those who are facing financial hardship.

“Off-grid households, which rely on heating oil or LPG gas, are not protected by the Energy Price Cap, which is of huge concern to me at a time of price rises like these.

“The Iran War has uncovered how beset with bad practice the heating market really is, and how a radical, transparent overhaul of the system is needed to protect customers from price gouging.

“Rural households are in a critical situation, with many struggling to keep their homes warm, which is why this money must be targeted to those most in need to prevent tanks from running dry.”

Sir Keir has resisted US President Donald Trump’s demands to send Royal Navy warships to help secure the vital shipping route for oil and gas which has been effectively closed to tankers by the Iran war.

He said the UK was working with countries, including European allies, on a “viable plan” to ease the crisis, which has driven up global oil prices.

Setting out his response in a Downing Street press conference Sir Keir said he would not allow the UK to be drawn into a “wider war” in the Middle East.

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.

Mr Trump said Nato faces a “very bad” future should its member states fail to help, adding: “We’ll see if they help us, because I’ve long said that we’ll be there for them but they won’t be there for us.”