£200 heating oil allowance

Linsomer

So where is it?  Octopus know nothing about it.  Still haven't received it.  Where was it when I needed to order oil and had to borrow money?  Rural pensioners off grid need it now

dunstonh

So where is it?
<snip>
Still haven't received it.

Its not due to be paid yet.  Be patient.    

Octopus know nothing about it.

That is patently not true.   Those that need to know about it at Octopus will know.   A call centre staff member is unlikely to.

The scheme details were published just yesterday.   Octopus will train their call centre staff in due course.  

 Where was it when I needed to order oil and had to borrow money? 

Oil is cheaper than it was last March when there was no scheme.  It's cheaper than Gas and electricity and is at the upper end of the typical expected range.       So, you didn't really need it.   What you mean is that you want it.

If we are being honest about it, oil users really could have done with support in March last year but don't need support now.  Its effectively a freebie handout that middle earners are going to end up paying in extra tax.

Linsomer

Really?
I'm a pensioner on benefits and last November I ran out of oil.  No choice but to borrow money to pay out £460 up front for minimum permissable amount.  Without it no heating or hot water.  Still owe it. That's the reality for me and others like me living in rural communities 

400ixl

This was an update from one of our local oil suppliers earlier in the week.

Off-grid households are set to receive £200 in government support from next month, with payments being processed from February 6th. In total around two million households are in line to get Alternative Fuel Payments as part of the government’s package of cost-of-living support.For the vast majority of eligible households, the Alternative Fuel Payments support will be received automatically via their electricity supplier with no need to take any action. However, it is anticipated that there will be a small number of households who are unable to receive the funding automatically, for instance households without a direct relationship with an electricity supplier. The Government will ensure there is a route for those households to apply for and receive the £200 support through a portal and more information on this is expected soon.This payment is in addition to the Energy Bills Support Scheme (EBSS) non-repayable discount of £400, which you should’ve already started to receive as a credit to your electricity bill.  

spannerzone

Thanks for the info, what I don't quite get is how would my electricity supplier have any knowledge about my own oil boiler - they supply my electricity but there's absolutely no indication they'd be aware of whether I had oil, biomass or LPG as my heat source.

Apodemus

spannerzone said:

Thanks for the info, what I don't quite get is how would my electricity supplier have any knowledge about my own oil boiler - they supply my electricity but there's absolutely no indication they'd be aware of whether I had oil, biomass or LPG as my heat source.

They don't need to have any knowledge.  They are simply the vehicle for making the payment to the addresses that the Government has listed as being eligible.

Spoonie_Turtle

spannerzone said:

Thanks for the info, what I don't quite get is how would my electricity supplier have any knowledge about my own oil boiler - they supply my electricity but there's absolutely no indication they'd be aware of whether I had oil, biomass or LPG as my heat source.

The government determine who is automatically eligible by making a list of the off-gas areas.  Then they look at census data to see if the majority of households in the area use electricity for their main heating, or other fuels. 

Those areas where the majority use other fuels, get the payment automatically.  The government gives each supplier the list of qualifying meter point numbers that they supply.  Each meter point number is linked to an account so they credit that account.

Anyone using an alternative fuel in an area where the predominant main heating form is electric will not be on the list and will have to apply.

Anyone in an area where gas is supplied but who themselves are not connected and use an alternative fuel for their main heating will also have to apply.

dunstonh

That's the reality for me and others like me living in rural communities 

Not it is not.  It may be your reality but not everyone living in rural areas has that problem.   And where they do, its not likely to be down to the oil price.  Especially after a mild 2022.

what I don't quite get is how would my electricity supplier have any knowledge about my own oil boiler - they supply my electricity but there's absolutely no indication they'd be aware of whether I had oil, biomass or LPG as my heat source.

There are a number of databases that they are using and if anyone is missed on those, they will be able to apply manually.

propertyrental

Linsomer said:

Really?
I'm a pensioner on benefits and last November I ran out of oil.  No choice but to borrow money to pay out £460 up front for minimum permissable amount.  Without it no heating or hot water.  Still owe it. That's the reality for me and others like me living in rural communities 

I feel for you, I really do. But that's a reflection of your income generally and utility costs generally.

You'd have had the same financial difficulty if you had a gas boiler. The fact that you live in a rural area and use oil is not the problem.

Apodemus

propertyrental said:

Linsomer said:

Really?
I'm a pensioner on benefits and last November I ran out of oil.  No choice but to borrow money to pay out £460 up front for minimum permissable amount.  Without it no heating or hot water.  Still owe it. That's the reality for me and others like me living in rural communities 

I feel for you, I really do. But that's a reflection of your income generally and utility costs generally.

You'd have had the same financial difficulty if you had a gas boiler. The fact that you live in a rural area and use oil is not the problem.

While I agree that the overall income/expenditure issues are the real problem, to be fair to Linsomer, you don't need to pay a lump-sum up-front if you are heating by gas and the industry has procedures in place to make gas disconnection very much a last resort.  For people struggling to budget, oil becomes much more of a "feast or famine" issue.

I struggle with the whole "who should be subsidised" question.  Oil seems expensive at the moment because we have had a period where it has been very cheap, but it has been more expensive in the past and there was no question of government hand-outs then.  Nor do I remember any sympathy from gas users over the years when gas was cheaper than oil. 

MattMattMattUK

Apodemus said:

propertyrental said:

Linsomer said:

Really?
I'm a pensioner on benefits and last November I ran out of oil.  No choice but to borrow money to pay out £460 up front for minimum permissable amount.  Without it no heating or hot water.  Still owe it. That's the reality for me and others like me living in rural communities 

I feel for you, I really do. But that's a reflection of your income generally and utility costs generally.

You'd have had the same financial difficulty if you had a gas boiler. The fact that you live in a rural area and use oil is not the problem.

While I agree that the overall income/expenditure issues are the real problem, to be fair to Linsomer, you don't need to pay a lump-sum up-front if you are heating by gas and the industry has procedures in place to make gas disconnection very much a last resort.  For people struggling to budget, oil becomes much more of a "feast or famine" issue. 

I think your last sentence identifies the real issue, struggling/failure to budget, if one has an annual energy usage of £2,400 and puts £200 aside for energy every month it does not matter if they have to pay for energy before or after usage, or indeed concurrently with usage then there is no issue. If one decides to only try to find the money when a bill comes in, be that when needing to buy oil, or on a quarterly or six month bill from an energy supplier is due for payment then one is much more likely to have financial problems.

Apodemus said:

I struggle with the whole "who should be subsidised" question.  Oil seems expensive at the moment because we have had a period where it has been very cheap, but it has been more expensive in the past and there was no question of government hand-outs then.  Nor do I remember any sympathy from gas users over the years when gas was cheaper than oil. 

I disagree with subsidy as a long term solution, it has a place as a temporary emergency measure but the additional borrowing going onto the national debt is likely to contribute to more long term harm than the short term increase in costs. We have had a period where energy was too cheap which shaped whole areas from consumption, to sources of energy, to the failure of successive governments on energy security, long term planning and taking measures to reduce and eventually remove climate impact.