The government must do more to protect rural households from soaring heating oil prices, the Countryside Alliance has argued ahead of a Westminster Hall debate on the issue on Wednesday (4 November).

The debate, secured by Jamie Stone MP (Caithness, Sutherland and Easter Ross), heard MPs from across the political spectrum highlight the difficulties facing the estimated 1.5 million households that rely on heating oil, many of whom have few practical alternatives because they are not connected to the mains gas grid.

Members highlighted the impact of recent price rises, with some households seeing the cost of filling their tanks double or even treble. Unlike gas and electricity customers, heating oil users are not protected by the energy price cap and must often find hundreds or thousands of pounds upfront to secure their supply. This is particularly difficult for older and vulnerable people, with several MPs describing constituents being forced to choose between heating their homes and meeting other essential costs.

There was widespread concern that the government's £53 million support package, announced earlier this year, was insufficient, amounting to approximately £35 per household if spread across all heating oil users against a household bill often in the high hundreds of pounds. MPs also raised concerns about the slow distribution of available funding, with some local authorities yet to reach those most in need.

Numerous Members, including Mr Stone, echoed our suggestion of temporarily reducing VAT on domestic heating oil to zero, while others advocated a price cap, lower minimum delivery quantities and greater transparency over pricing. The Minister, Polly Billington MP, confirmed that the government intends to bring heating oil within a new regulatory framework through the Energy Independence Bill, including measures to address minimum order volumes and payment options.

The Countryside Alliance supports a fair transition to affordable and sustainable energy, but rural households must not face unfair costs simply because of where they live. Ahead of the debate, the Alliance briefed MPs on the challenges facing off-grid communities and alongside our call for VAT on domestic heating oil to temporarily be reduced to zero, advocated a reduction in VAT on heating oil used by rural businesses. These were among our ten key requests to the Chancellor as he was drawing up last month’s Budget, but sadly they were not delivered.

While the government's commitment to stronger consumer protections and its temporary suspension of import tariffs on kerosene – which the Chancellor did announce during the Budget – are welcome, these measures do not remove the underlying vulnerability of households exposed to international price shocks. If there is to be any further help to meet energy bills, it must include households reliant on heating oil as well as other alternative fuels, such as LPG.

The Alliance will continue to press for energy policies that recognise the realities of rural life and ensure that those living beyond the gas grid are not left behind.