Cost of living: Home heating oil customers to get £100 payment

Home heating oil customers in Northern Ireland are to get a one-off payment

Home heating oil customers in Northern Ireland are to get a one-off payment of £100 to help with rising energy costs.

That will be in addition to a cap on the unit price of electricity announced by the government on Wednesday.

People who use gas to heat their homes will also benefit from a cap on the unit price of that fuel.

The modest support for oil users reflects the fact that gas prices have risen much more sharply than oil in the last year.

The £100 will be delivered as a top-up to the £400 Energy Bills Support payment, which is going to all UK households.

'Insult'

In a statement, the government said: "The government will also provide an additional payment of £100 to households across the UK who are not able to receive support for their heating costs through the Energy Price Guarantee.

"This might be because they live in an area of the UK that is not served by the gas grid and is to compensate for the rising costs of alternative fuels such as heating oil."

The Northern Ireland Consumer Council said heating oil currently costs more than £520 for 500 litres, compared with about £220 for the same amount a year ago.

Peter McClenaghan from the council said: "The commitment from the prime minister that support will be provided to Northern Ireland consumers whether they use heating oil or natural gas is welcome.

"The Consumer Council is keen to see more progress in the development of support for consumers who primarily use home heating oil to heat their homes.

"This should be support over and above the additional payment of £100 to all households across the UK who are not served by the gas grid."

Stormont Economy Minister Gordon Lyons said he did not believe the offer of £100 of oil would "cut it in any way, shape or form" and revealed he had not been made aware of the plan prior to its announcement.

"I'm in the process of continuing to raise this with various government ministers to make sure that they realise that this is not going to go far enough for people in Northern Ireland," he told BBC Radio Ulster's Evening Extra.

Economy Minister Gordon Lyons told BBC a £100 oil voucher wouldn't "cut it in any way, shape or form"

Mr Lyons welcomed price caps but acknowledged that price rises due in October would go ahead and consumers may not see any benefit until November.

"It's not going to take away all of the pain that people are going to be facing but it does stop it from getting worse," he added.

SDLP leader Colum Eastwood described the government plan for the £100 heating oil payment as an "insult".

"They have no idea what real people are going through," he tweeted.

"The ⁦‪SDLP‬⁩ are proposing 1,000 litres of oil for households. Only radical action will protect families this winter."

Colum Eastwood said the government had no idea "what real people are going through"

The broader scheme means energy suppliers in Northern Ireland will reduce bills by up to 17p/kWh for electricity and 4.2p/kWh for gas.

When the cap was announced for the rest of the UK, the government said it was expected to save the typical household £1,000 a year based on current energy prices from October.

Help for businesses

Northern Ireland businesses are also being promised an energy cap similar to that which has been announced for the rest of the UK.

Wholesale energy prices for businesses will be capped at "less than half" anticipated winter levels under a huge government support package.

The Energy Bill Relief Scheme will offer discounts for all firms for six months from 1 October.

Hospitals, schools and other settings such as community halls and churches will also get help.

Northern Ireland is in a different energy market from the rest of the UK so Northern Ireland businesses will get a scheme based on the same criteria and offering comparable support but "recognising the different market fundamentals".

Households have been dealing with big increases in their energy bills

Stormont Finance Minister Conor Murphy has said the announcement did "not provide the support that citizens and businesses here need".

"The promise of equivalent support without the underpinning detail does nothing to reassure businesses," he added.

"Most businesses are anxious about how they will make it through the winter.

"Businesses need certainty now to enable them to plan and to provide reassurance to their employees."

'Urgent clarity' sought

The trade body Retail NI said it was "hugely disappointing" that more clarity was not provided on the energy cap.

"The government needs to ensure that a clear date is provided for the introduction of the energy bill cap, a business rates holiday and VAT reductions to support local small businesses," chief executive Glyn Roberts said.

Colin Neill, chief executive of Hospitality Ulster, said it was "simply unacceptable" that businesses in Northern Ireland did not yet have the full details of how support would be provided.

"We need urgent clarity on how these measures will be carried forward, thousands of businesses are on the brink with many concerned how they will get through the winter," he said.