21 Oct 2026
Targeted financial support for off-grid homes is urgently needed as hundreds of thousands of families face price rises of over 75 per cent for heating oil as they prepare for winter.
That is the message being sent to Prime Minister Andy Burnham, who is being urged to use the upcoming Autumn Budget to offer help to some of the families hardest hit by the ongoing energy crisis.
A coalition of three organisations, representing more than 4,000 member organisations, is calling on the government not to forget off-grid households who rely on heating oil and LPG, most of which are located in rural areas.
The three organisations are Action with Communities in Rural England (ACRE), as well as its network of 37 independent county-based charities, the Rural Services Network (RSN) and the Scottish Council for Voluntary Organisations (SCVO).
Significant Price Increases
A single litre of heating oil cost 61 pence on average in February before the conflict in the Middle East.
On 15 October, **a litre was around 85 per cent higher at £1.13.** This means the current cost of a standard 1,000-litre delivery of heating oil is well over £1,100.
Heating oil and LPG are not covered by the energy price cap, which applies only to electricity and gas. With no protection against further price rises, nor any sign the price is going to drop, many rural families will be forced to do whatever they can to make their current supply last and to avoid running out.
The Rural Reality
Forty-five-year-old Rachel Ryan is a single parent whose home, which she shares with her two children, can only be kept warm with heating oil.
She said: “Buying heating oil in one lump sum is really tricky, especially when you’re on a low income, as it feels like playing Russian roulette.
“Families who pay their energy bills through a direct debit can spread the cost throughout the year, but we have to pay whatever the price is on the day that the tank needs filling.
“Although our family has oil in the tank, we know the next refill will come in at almost £800, so we’re being very careful and trying to make what we have last until after Christmas.”
When Rachel filled her heating oil tank at the beginning of 2026, the cost was £408.
She said: “Having help from the government would really make a difference.
“I know that Christmas will look different this year, as savings need to be made from somewhere, which as a parent is really hard to say.
“A £50 reduction on our heating oil bill would help me to treat the children and do some of the nice things, even just a hot chocolate after an autumn walk, that we’ve been having to cut back on recently.”
The Calls For Change
The coalition is calling for three urgent actions that have the potential to make an immediate difference to heating oil users.
The first is the introduction of a six-month VAT holiday on heating oil purchases, which mirrors similar action already taken to help with the rising cost of domestic electricity bills.
Cutting the VAT on heating oil for six months would save around £50 on the price of a standard 1,000-litre order of oil.
Elsewhere, the charities have asked for additional financial support for households with the lowest incomes, as well as widening and standardising the eligibility criteria for existing support so that middle-income families, who feel the pinch too, can also be helped.
This last proposal is in direct response to the government’s Crisis and Resilience Fund, which was given additional funding in March after heating oil prices rose rapidly in a short space of time, but only made available to the most vulnerable households through an application to their local council.
Corinne Pluchino, Chief Executive, Action with Communities in Rural England:
Andy Burnham’s pledge to help take the pressure off has so far failed to reach the hundreds of thousands of UK households reliant on heating oil.
These customers, many of whom are older or living in rural homes that are notoriously difficult to insulate, have experienced much bigger price increases this year than those whose energy is protected by Ofgem’s price cap.
The actions we are calling for are simple, effective and can be implemented immediately, which we know will make a real difference to so many who currently face this winter not knowing if they will be able to afford to keep themselves and their loved ones warm.
Kerry Booth, Chief Executive, Rural Services Network:
No one should have to choose between heating their home and meeting other essential costs simply because of where they live.
Rural communities already face additional costs for fuel because public transport is not always available, and wages earned within rural communities are lower than the national average. We urge the Prime Minister to take action to support rural residents.
Anna Fowlie, Chief Executive, Scottish Council for Voluntary Organisations:
Village halls play a central role in rural and island life. They offer warm places for people to meet, hold community events, contribute to the tourism industry and offer shared workspaces, community enterprises such as cafes and local craft workshops.
They rely on oil for heating and already pay a premium compared to other parts of the country because of the cost of transportation, particularly to Scotland’s 93 inhabited islands. The current situation means that they are struggling to pay their bills and keep their doors open, just at a time when demand for warm space and access to food is going up because the communities they serve are hard hit by their own rising household costs.
Further information about how ACRE and its network supports rural communities to thrive, can be viewed online at www.acre.org.uk.
Details about SCVO can be found at www.scvo.scot.
