New funding announced to help rural households with heating oil costs

The Government has announced a £53 million fund to support households in rural communities who rely on heating oil, with England receiving £27 million. This money will be distributed through local authorities via the new Crisis and Resilience Fund (CRF), which launches on 1 April 2026, replacing the current Household Support Fund.

The funding is specifically aimed at the most vulnerable households, helping those who are struggling with rising heating oil costs. The Government has also confirmed it is exploring new protections for heating oil customers, as this sector is currently unregulated.

How the fund will work

Current guidance from the Department for Work and Pensions (DWP) sets out how the CRF is expected to operate:

• Local authorities are expected to work closely with voluntary and community organisations to identify and support low-income and vulnerable households.
• Authorities should draw on a wide range of information sources, including data they already hold and input from local organisations, to make sure support reaches the right people.
• Community groups may help with outreach, referrals, and raising awareness, making sure residents know about the funding and can access it quickly.
• Funding can be used to provide Resilience Services, such as advice, outreach, and referrals, helping people improve their long-term financial situation.
• Community coordination is a key requirement, ensuring partnerships between statutory services, voluntary organisations, and local projectsAuthorities must make the fund visible, inclusive, and accessible, including online and non-digital information for residents.

What this means for local organisations

Local charities and community groups, like ours, will have an important role to play. We can help authorities reach those most in need, provide advice, support households to access funding, and help raise awareness of available services. By working together, authorities and community organisations can ensure the funding is accurately targeted and delivers the maximum benefit to rural households.

Key issues to be aware of

• The current guidance predates the new heating oil announcement and may be updated with more details.
• Support is targeted at the most vulnerable rural households rather than offered universally, unlike on-grid energy support. This means some households may receive less assistance than urban or grid-connected households.
• Community organisations are encouraged to stay in touch with local authorities to understand how the funding will be delivered and how they can help ensure it reaches those who need it most.

This new fund is an important step in supporting rural households struggling with heating costs, and we will continue to share updates as more details become available.

You can read more about the Crisis and Resilliance Fund in our article here.