Households that rely on heating oil could face a winter cost crunch when an emergency support scheme ends next month, prompting pressure on the Scottish Government to extend help for families not connected to mains gas.
Scheme due to end on September 30
The Scottish Emergency Oil Scheme is due to close on September 30, with concerns that people who depend on heating oil could be left in limbo if prices remain high. The emergency programme pays £300 direct to suppliers on behalf of eligible households.
Oil prices soared in March following the outbreak of the US-Israel conflict with Iran and remain around 60% higher than pre-crisis levels. Around 142,000 Scottish households rely on heating oil, and average costs in Scotland rose from 67.9 pence per litre on February 28 to 147p per litre by March 8.
Last month, it was revealed that just £1 million of the £10 million Scottish Government fund has been paid out.
Calls for longer-term support
Existing Homes Alliance, a coalition of housing, environment and fuel poverty organisations, has demanded the Scottish Government extends the emergency scheme while putting plans in place to remove fossil fuel dependency.
Gillian Campbell, director of the Existing Homes Alliance, said: “Emergency support cannot be the end of the story when renewable sources can protect people from future shocks to the global energy market.
“It should be the start of a practical route into advice, insulation and clean heating so households are not left facing the same crisis year after year.
“Heating oil households are often in rural areas, may need to pay large sums upfront and do not have the same protections as people on regulated energy tariffs.
“Ministers should protect people this winter while making it easier and more affordable to make their homes warmer and healthier.”
She added: “It’s not yet too late for households to break free from the rollercoaster of heating oil cost fluctuations before this winter bites – and the Scottish Government must ramp up its support for those homes not on the mains gas, to help them transition to renewable heating sources.”
Government response
The Scottish Government said there were “unique and acute” challenges for households reliant on heating oil. But it gave no commitment to extending the emergency scheme, saying the UK Government should “strengthen protections” for households because energy is reserved to Westminster.
A spokesman said: “Those who rely on heating oil to warm their homes can face unique and acute challenges. Earlier this year, the Scottish Government launched the Scottish Emergency Heating Oil Scheme in response to the spiralling prices caused by the Iran conflict and wider instability across Europe. To date, more than 6,000 awards have been made, ensuring the most vulnerable households have received support.
“The Scottish Government is also providing funding and support to change to cleaner, more sustainable forms of heating through Home Energy Scotland Grant and Loan and Warmer Homes Scotland programmes.
“As energy policy is ultimately reserved to Westminster, the UK Government must act now to help people with high energy bills and to strengthen protections for heating oil consumers. Scotland is an energy rich country, and no Scottish household should have to worry about their bills.”
Pressure from MPs and wider bill rises
The calls come after Ofgem announced that the energy price cap would increase by 4% on October 1, increasing bills for millions of households. A household using a typical amount of gas and electricity will pay £60 a year more, though more than a third of households are on fixed tariffs and will not see their prices change.
Torcuil Crichton, Labour MP for Na h-Eileanan an Iar, warned in the UK Parliament last month that the emergency scheme was not reaching his constituents. He said “more applicants are being rejected than accepted under the current rules” set by the Scottish Government.
“When it was launched the scheme stated it would also be open to households with ‘priority need for heat due to geography or rurality’.
“All of the Western Isles can be described as ‘very rural or remote’ which are the qualifications for eligibility under this geography and rurality definition.
“Given that almost half of island households are dependent upon heating oil and that we have the highest rates of fuel poverty in the country support should be directed where it is most needed.”