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Sat, 14 Mar 2026

Sat, 14 Mar 2026 Chancellor to offer support over rising heating oil costs

Rachel Reeves says the Treasury is also looking at "different options" to help households most vulnerable to soaring energy bills.
Chancellor Rachel Reeves has announced plans to provide support to households struggling with high heating oil costs, which have increased due to global market fluctuations caused by the US-Israel conflict in Iran. Around 1.7 million households in England and Wales rely on kerosene for heating and hot water, but unlike gas and electricity prices, these are not capped and are subject to volatility. Reeves has stated that she has found funding to help those affected, with support expected to be announced early next week. She also mentioned that the Treasury is exploring different options to assist vulnerable households with soaring energy bills. The increase in global oil prices has caused a spike in heating oil costs, which are not covered by Ofgem's energy price cap set to fall in April. Households using heating oil have seen their bills double since the start of the conflict. Reeves also mentioned that the government is working on scenarios for gas and electricity bills ahead of the next price cap in July, with a focus on more targeted options. The UK's economy is at risk of slowing down due to the ongoing conflict in the Middle East, which could lead to higher petrol prices, household energy bills, and food costs.