Cost of Heating Oil Debate
Full Debate: Read Full DebateDepartment: Department for Energy Security & Net Zero
Sean Woodcock
Main Page: Sean Woodcock (Labour - Banbury)Department Debates - View all Sean Woodcock's debates with the Department for Energy Security & Net Zero
(1 day, 8 hours ago)
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Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
It is a pleasure to serve under your chairship, Dr Allin-Khan. I thank the hon. Member for North Norfolk (Steff Aquarone) for securing this essential debate.
The escalation of conflict arising from Donald Trump’s war on Iran and the consequential disruption to the strait of Hormuz has sent shockwaves through international fossil fuel markets. This has left many households across the country, including a significant number of my constituents, facing sudden and severe increases to their energy bills.
I have been contacted by people who are switching off their heating entirely or worried about preserving what supply they have. This is particularly concerning for elderly people or those with health conditions who need to stay warm. The average price of UK heating oil increased by 100% in just three days, and prices have remained over 120p per litre ever since.
Across the UK, around 1.5 million homes rely on heating oil systems, with a particularly high concentration in rural areas. Around a quarter of households in my constituency use oil central heating, compared with 5% nationally. Households that are dependent on oil-heated systems are not protected by Ofgem regulation or the energy price cap, and are therefore more exposed to immediate energy price increases.
Sean Woodcock (Banbury) (Lab)
This crisis shows that we cannot rely on emergency payments to resolve geopolitical shocks; we need the electrification of heat in rural areas, and heat pumps play a significant part in that. Does my hon. Friend agree that the Government taking steps to roll out renewables and heat pump technology across rural areas would go a long way to help to protect and preserve rural areas from these sorts of shocks in the future?
Steve Witherden
It will not surprise my hon. Friend that I agree wholeheartedly.
With heating oil prices reaching levels similar to those in 2022 following the Ukraine war, our Government have been far quicker to react than the previous Conservative Government were. Less than two weeks after the price surge, the Department for Energy Security and Net Zero announced a £53 million support package aimed at protecting the most vulnerable households that rely on heating oil—particularly low-income households in rural communities.
Wales was allocated £3.8 million, which the Welsh Government delivered through one-off £200 payments to eligible households on the council tax reduction scheme that use heating oil or liquefied petroleum gas. They also made enhancements to the value and frequency of the discretionary assistance fund for those in severe financial hardship. This response to protect households’ immediate needs in the face of crisis was very welcome.
However, if high prices persist, support will need to evolve. What plans do the Government have to ensure continued and expanded support for vulnerable households should this crisis continue? Diolch yn fawr.