UK Councils Develop Policies for Distributing New Government Heating Oil Support Fund

The UK government launched the £1 billion Crisis and Resilience Fund on April 1 to support households facing financial pressures. This fund replaces the temporary Household Support Fund and Discretionary Housing Payments. It provides councils with a single grant to distribute aid more efficiently.

Councils in Berkshire, including the Royal Borough of Windsor and Maidenhead, Bracknell Forest, Slough, West Berkshire, and Wokingham, are preparing to implement the fund. These authorities must draft policies on distribution before obtaining council approval. Reading Council stated it will not receive additional funding for heating oil due to low demand in its urban area.

6% of households nationally. Unlike gas and electricity users, heating oil prices are not capped by regulator Ofgem. This leaves affected households exposed to market fluctuations.

oil prices have risen significantly since Russia's invasion of Ukraine in February 2022.

Jonathan Pinnock, director at Thatcham-based JPS Fuels, reported that prices doubled in one week following the invasion's start. The company passed on these costs to customers, as pre-war orders were honored at agreed prices. Pinnock noted the oil market's volatility prevents fixed pricing offers currently.

This situation has increased difficulties for businesses and consumers reliant on heating oil. Households using oil face higher and unpredictable energy costs compared to those on capped utilities.

Stuart McKellar, executive director of resources at Bracknell Forest Council, stated that details on fund usage are still being determined due to the scheme's newness.

Councils expect to decide on implementation soon. The fund targets families needing help with essentials like heating. Nicola Miller, chief executive of Citizens Advice East Berkshire, advised households to assess their energy needs early and contact suppliers to avoid debt.