Government announces that home heating oil users will get £200 this winter

The government has said that it will be increasing the Alternative Fuel Payment this winter – doubling it from the £100 announced in the mini-budget. Heating oil users will receive the payment “as soon as possible this winter”, the Chancellor confirmed during the Autumn Budget.

The Chancellor said the government would up the fixed payment to £200 for domestic heating oil users. Commercial users will receive a one-off payment of £150, plus a top-up for businesses with high usage, which will be based on actual usage.

Off-grid properties that use alternative fuels, including heating oil, liquid petroleum gas, coal or biomass for heating will receive the payment.

Heating oil users won’t need to do anything to receive the fixed payment. Our trade association, the UK and Ireland Fuel Distributors Association (UKIFDA), worked closely with the government to recommend the most efficient way to distribute the payment. Given the complex structure of the heating oil market, the government has said it will likely make the payment through electricity bills.

Update (1st Dec 2022):
The government has confirmed that the Domestic Alternative Fuel Payment of £200 will be made in the New Year. The payment for most customers is expected to be through their electricity bills with additional information expected shortly. Now there is additional clarity on timing, we continue to strongly advise customers to purchase their heating oil as usual ahead of cold weather.