Help with heating oil for low-income households

A large number of UK homes, especially in rural areas, are not connected to the gas grid and rely on heating oil. That brings particular problems for anyone on a low income: oil is usually bought in large deliveries rather than paid for monthly, prices can swing sharply from one month to the next, and there is no Ofgem price cap. Running out in January can mean no heating and no hot water until you find several hundred pounds.

This guide is for oil-heated households in England, Wales, Scotland and Northern Ireland (where oil is the most common heating fuel). It explains which payments and grants apply to you, how to buy oil more cheaply and in smaller amounts, and what to do in an emergency before considering any kind of credit.

Why heating oil is different

Heating oil is an unregulated fuel. You choose your own supplier and pay the price quoted on the day you order. Many suppliers have a minimum order, often a few hundred litres, so a single delivery is a big lump sum. If you let the tank run dry, the boiler may also need to be bled and restarted, sometimes by an engineer, which is an extra cost. Planning ahead is the best protection, but it is hard when your budget is already stretched. That is why the help below matters.

Payments that apply to oil users too

National winter support is not limited to gas and electricity customers:

• Cold Weather Payment (England and Wales): £25 for each qualifying week of very cold weather, paid automatically to people on certain benefits, whatever fuel they use.
• Winter Fuel Payment: for people over State Pension age, and usable for any heating fuel. Check GOV.UK for the current income rules.
• Warm Home Discount: paid as a credit on your electricity account if you qualify. Even though you heat with oil, the saving on electricity frees up money.
• Scotland: Social Security Scotland runs its own winter heating payments for people on low incomes and for pensioners, which replace some of the UK schemes.

Being on Pension Credit, Universal Credit or another means-tested benefit often opens the door to these, so make sure you are claiming everything you are entitled to.

Emergency help when the tank is nearly empty

If you cannot afford a delivery and the tank is low, act before it runs dry:

• Your council's crisis support scheme: in England, councils have used government crisis funding to help off-grid households with oil; in Scotland, try the Scottish Welfare Fund; in Wales, the Discretionary Assistance Fund; in Northern Ireland, Discretionary Support.
• Fuel and heating charities: some charities that run fuel vouchers also have schemes for off-grid households, usually through a referral from a food bank, housing officer or advice service.
• Charitable grants: occupational, military and local benevolent funds sometimes pay towards a fuel delivery. A grant search via Turn2us is a good starting point.
• Your supplier: ask whether they can deliver a smaller emergency quantity. Some suppliers sell small drums of oil or accept a lower minimum for customers in difficulty, though the price per litre is usually higher.

If the boiler has stopped and you have no other heat source, tell the council or advice service that you are vulnerable, for example because of age, a health condition or young children. It can speed things up.

Paying less for oil over the year

• Join an oil buying club. Community oil clubs pool orders across a village or area so members get a bulk price. They are common in rural England, Wales and Scotland, and in Northern Ireland there are many local oil clubs set up with support from community organisations.
• Spread the cost. Several suppliers offer monthly payment plans or budget schemes where you pay a fixed amount and draw deliveries against it. Read the terms: you are lending them money in advance, so choose an established firm.
• Order in summer. Demand is lower and prices are often lower too, though this is not guaranteed.
• Get several quotes on the same day, and ask about the price for your exact volume.
• Look after the system. An annual service by an OFTEC-registered technician keeps the boiler efficient and lowers the chance of a costly breakdown.

Longer term, ask about free or subsidised insulation and heating upgrades through supplier obligation schemes and council-run warm homes grants. Off-gas homes on low incomes are often a priority group. Our general guide to help with heating costs covers insulation and benefits checks in more depth, and if you use a wood burner as well, see support with firewood costs.

Checklist before you order

• Check your tank gauge regularly and order before you are below a quarter.
• Confirm you are receiving Cold Weather and Winter Fuel Payments if eligible.
• Ask your council about crisis help, and an advice service about fuel charity referrals.
• Compare quotes and ask about oil club prices.
• Pay by card or bank transfer only to a supplier you have verified.
• Keep the tank secure: oil theft happens, and a lockable cap or alarm can help.

If you are thinking of borrowing

Because oil comes in big bills, people are often tempted to use a credit card, a catalogue account or a short-term loan. Look first at interest-free options: a Universal Credit Budgeting Advance may help in some situations, and a credit union loan is usually much cheaper than high-cost credit. Always compare the APR and the total amount you will repay, and work out whether the monthly repayment leaves enough for food and electricity. Our page on community and not-for-profit lenders explains alternatives to mainstream credit.

If you already have debts, borrowing for fuel can make things worse. Speak to a free debt adviser at StepChange, National Debtline or Citizens Advice first.

Oil delivery and lending scams

Be careful with very cheap oil adverts on social media, cold calls offering discounted deliveries, or sellers who want full payment by bank transfer before giving you an address or company details. Check the business is real and has a traceable address and phone number. The same applies to loans: genuine lenders never ask for an upfront fee, and any lender should appear on the FCA Financial Services Register.

For readers who are not in the UK: in Ireland, the Fuel Allowance supports people on certain social welfare payments, and similar winter heating programmes exist in North America. Check your local government's official sources.