Could you get more support for your heating?

Around 1.5 million UK households rely on heating oil to keep their homes warm. But many are now facing soaring costs, as the price of heating oil has risen sharply since the conflict in the Middle East began.

Unlike gas and electricity, heating oil is not covered by the Ofgem price cap. This cap limits how much suppliers can charge households using mains gas and electricity.

That means if you rely on heating oil, your costs can rise much faster, and many households say their bills have already doubled.

Where heating oil is most common

Heating oil is used much more in some parts of the UK than others.

• In Northern Ireland, around 500,000 homes rely on heating oil, almost two-thirds of all households.
• In England and Wales, around 3% of households use oil as their only source of central heating, according to the 2021 census.
• In Scotland, it’s around 5% of households.

For many of these homes, especially in rural areas, switching to another type of heating isn’t always simple.

What support has been promised?

Prime minister Keir Starmer has announced £53m in support to help vulnerable households struggling with rising heating oil costs.

The funding will be targeted at the poorest households, with the government saying it wants to support working people through “whatever challenges lie ahead”.

Chancellor Rachel Reeves is expected to reveal the full details of the support package next week. This could include direct payments to vulnerable households.

Could gas and electricity bills rise too?

Even if you don’t use heating oil, your energy bills could still increase later this year.

The current energy price cap set by Ofgem is fixed until June. But if global energy pressures continue, analysts say prices could rise again.

Energy analysts at Cornwall Insight predict that household energy bills could increase by around 10% from July due to rising wholesale gas prices.

If that happens, the typical annual bill for a dual-fuel household could rise by around £160, reaching about £1,081 a year between July and September.

The government has until June, when the current price cap ends, to decide whether further support will be offered to households using gas and electricity.

Petrol and grocery prices could rise too

Higher energy costs don’t just affect your heating bill.

They can also push up the price of petrol and food, because energy is needed to produce and transport goods.

Some fruit and vegetable growers have already warned that rising energy costs could force them to end the growing season early, which could put further pressure on grocery prices.

Worried about rising bills?

If you’re worried about how rising costs could affect your budget, it can help to see the bigger picture.

Our free and interactive household bills calculator gives you a personalised forecast of how your monthly costs could change.

It only takes a couple of minutes to use and shows how bills may change based on where you live.

Get a personalised forecast of your bills

Using the calculator is simple.

Just enter your current monthly costs and select your local council area. The tool will then estimate how much your bills could change over the coming year.

You’ll get a personalised outlook for:

• energy
• water
• council tax
• phone and broadband
• TV licence
• groceries
• vehicle tax

Once you’ve filled it in, you’ll see:

• what you spend now
• what your bills could rise to
• the overall difference to your monthly budget

Take the next step with your budget

Once you’ve checked your costs with the household bills calculator, you can go a step further by using our free budget planner.

It helps you map out your monthly income and spending so you can see exactly where your money is going.

If you’re struggling to keep up with household bills, you may also be entitled to extra help. Our benefits calculator can quickly check whether you’re claiming all the support you’re eligible for.