Cost of Heating Oil

Steff Aquarone Excerpts

Wednesday 15th April 2026 Westminster Hall

[Steff Aquarone (North Norfolk) (LD)]

I beg to move,

That this House has considered Government support for the cost of heating oil.

It is a pleasure to serve under your chairship, Dr Allin-Khan.

It would be fair to say that North Norfolk is quite rural. We are proud of that, and we enjoy the beauty and tranquillity that it affords those of us lucky enough to live there, but in the decades I have lived there and all the time I have been campaigning and working for the people of North Norfolk, I have seen too many ways in which we seem to be punished or penalised for rurality.

Much of the North sea gas that is used across the country passes through the North Norfolk countryside, deep underground and at high pressure. A vast amount of gas is onshored at the Bacton gas terminal, one of my constituency’s largest employers, and then sent out across the country. Despite our being the custodians of that vital resource, around half of my constituency is not connected to the gas grid. Of those who are not connected, more than half rely on heating oil or liquefied petroleum gas to heat their home and provide hot water. These homes, and the families in them, vary widely. The homes range from listed buildings that cannot be retrofitted to run-of-the-mill family homes that happen to be somewhere with no gas connection and were built long before the advent of heat pumps and other green energy solutions.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

Will my hon. Friend give way?

[Steff Aquarone]

Gladly. [Laughter.]

[Vikki Slade]

I am so glad that he made it to the Chamber in time. Will he comment on the fact that families who live in very old properties—I have properties on Charborough Park and in Shapwick that are National Trust properties or belong to old estates—are already facing much higher costs to run their homes because they are solid-wall and thatched?

[Steff Aquarone]

I completely agree. As I said, these homes vary widely, as do the families that live in them, but what connects all these places and people is a unique and worrying exposure to oil price shocks impacting their daily lives.

Running a home on heating oil means buying energy in advance, in bulk and irregularly throughout the year. Households know that even half-filling an oil tank will cost them hundreds of pounds. They expect and budget for that. But since the outbreak of Donald Trump’s war in Iran, they have seen the price of heating oil skyrocket far beyond the changes in the price of crude oil.

[Cameron Thomas (Tewkesbury) (LD)]

I thank my hon. Friend for securing this important debate. Many of my rural constituents are also paying the price of President Trump’s latest exploration into market manipulation. Given that heating oil customers are not protected by the Ofgem price cap, will he join me in calling on the Government to take the Liberal Democrats’ line and implement such a price cap for heating oil customers?

[Steff Aquarone]

I surely will, and I will explain why very shortly.

[Alex Easton (North Down) (Ind)]

Given that between 60% and 65% of households in Northern Ireland rely on home heating oil, whereas 80% of the rest of the UK relies on gas, does the hon. Member agree that there is a strong case for the Government to enhance existing support schemes to reflect Northern Ireland’s higher dependence on home heating oil?

[Steff Aquarone]

Again, I agree, for reasons I will come on to. I will just note that the ministerial meeting for Members early on in this crisis, which was very welcome, featured a really interesting profile of Members from across the House. Rural and coastal Members often find themselves together, and Northern Ireland Members such as the hon. Gentleman were well represented at the meeting.

As I said, since the outbreak of war, the price of heating oil for my constituents has skyrocketed far beyond the gradual increases they suffer due to the usual inflationary pressures. This was a near-overnight shock that saw people having to scramble to find hundreds of pounds in already stretched household budgets. I want to share just a few of the experiences I have heard from my constituents.

Roy in Roughton has paid £1,400 to fill his tank, which usually costs him £800. Eric in Salthouse paid 55p a litre in January, but was quoted £1.34 a litre in March. Wendy in Hindringham told me that she had been quoted £720 for 500 litres of oil—double what she paid in October. She says:

“We just don’t have that sort of money.”

[Alex Brewer (North East Hampshire) (LD)]

I thank my hon. Friend for securing this important debate. As the representative for North East Hampshire, I know all too well the premium that many rural households face when it comes to bills and expenses. Rural households already have a really heavy burden, as he has outlined, including higher rates of fuel poverty, lower energy efficiency and a fuel poverty gap of £987 against their urban counterparts. More than 5,000 households in my constituency rely on heating oil. Does he agree that the Government have a responsibility to act, probably through a price cap, which would ensure that rural households are not penalised simply for where they live?

[Steff Aquarone]

I wholeheartedly agree, which is why I was so glad to be granted this debate, and I am sure other Members share that view. There is a long-term discussion to be had about Government action on retrofitting and reducing the fuel poverty gap, but right now the urgent issue is the price today.

I was pleased to see progress on some of these concerns in North Norfolk. Local heating oil delivery company Goff agreed to honour the prices it had agreed before the global price increases, which meant that many of my constituents were protected. But as welcome as that is, we cannot just rely on the good will of companies to regulate their own market. It has been left as a wild west for too long, without any strong regulations or protections to keep my constituents safe from unaffordable price spikes. While we rightly discuss a great deal the rises in the cost of energy, many who rely on heating oil will look enviously at the energy price cap, which at least puts a strong ceiling on what will be paid. For them, there are no guarantees of where the price rises will stop.

Another key issue is the minimum order requirements for heating oil. It is not like filling up a car, where if the prices look bad, we might just stick in £20-worth and hope it gets us to the end of the week. For most, the minimum order of heating oil is 500 litres. If someone runs out during the peak of a price spike, that means a minimum outlay of more than £500, or no heating or hot water.

[Jess Brown-Fuller (Chichester) (LD)]

A constituent got in touch who had been in hospital over the winter and then in a care home while he convalesced. He finally got home and is now having to pay for carers twice a day. He is 70, and he has no spare money. His heating oil has run out, and he is being quoted twice the price he paid in September, before he went into hospital. He is totally trapped. Does my hon. Friend agree that we need to protect the most vulnerable in our society from these shocks?

[Steff Aquarone]

I wish my hon. Friend’s constituent well in his recovery. This is just not something we had to think about 10 or 20 years ago. I am sure price-sensitive households were always thinking about every line on their household budget, but for somebody going from hospital to convalescence to home, continuing healthcare probably thinks about everything under the sun—except the cost of energy, because it has not been a thing for that long. We have to do more, because this issue is so urgent right now.

We finally have to say, “Enough is enough.” Heating oil customers need to stop being seen as an afterthought in energy policy. We need to reform properly how we support these people, so that they are never again forced to find vast sums of money just to keep their heating on because of global events that are totally out of their control.

[Adrian Ramsay (Waveney Valley) (Green)]

I thank my fellow Member from East Anglia for securing this crucial debate. He is right to highlight the vulnerability in our energy system that this war has exposed and the particular impact on rural communities. Does he agree that older people in rural communities are particularly impacted? As he says, we have seen a doubling or even tripling of costs and a huge financial outlay, which is resulting in some of my constituents having to pay by credit card because they do not have the cash. According to Age UK, 28% of pensioners were already struggling before this crisis. Does he agree that this is further evidence that although the Government’s package is welcome, they need to go further and put in place a price cap to ensure that constituents, including older constituents, are supported?

[Steff Aquarone]

The hon. Member is perfectly entitled to upgrade his geographical reference to “fellow Member from Norfolk”, as a decent quarter of his constituency is in the same county as mine. He will know that a disproportionate percentage of the population in Norfolk is older. There is a tragic, understated reality. When I visit households in my constituency—I am sure he can relate to this—I can just tell whether they are suffering from fuel poverty, because they will be living in one room. That is all too common for older people, and we have to take it seriously. I do not want to indulge in cheap soundbites, but the reality of how the older, retired generation live is quite different from the perceptions that are often peddled. I am grateful for his reminder of that point.

On policy, let me turn first to the support the Government have announced during this crisis. The money is welcome, but I cannot help but wonder how they thought that £53 million was adequate for the millions of people who are affected. I accept that they sought to prioritise those in greatest need, who must receive support, but do the Minister and the Government recognise that even if someone is not on the lowest income or relying on benefits, a sudden extra bill in the hundreds of pounds just to keep the heating on can cause real problems?

[Victoria Collins (Harpenden and Berkhamsted) (LD)]

I have a case from Berkhamsted. Louise’s entire estate relies on heating oil, and the price for filling her tank went from £1,080 to £2,500—a more than £1,000 increase—over a weekend. Does my hon. Friend agree that the £35 per household will not touch the sides?

[Steff Aquarone]

I do agree. That great example shows that even if the increase does not push a household over the edge into total poverty, it will cause people to have to make tough decisions about their money. Like my hon. Friend, I have inevitably received a range of messages on this issue. Unfortunately, I have had quite a few on social media over my calls for support with fuel costs. That is a shame, as I am an environmentalist, but we will not win the argument on renewable energy by making struggling rural households pay the price of Trump’s illegal war in Iran. This is part of a wider debate about retrofitting and rural renewables. We do not have time to explore it here, but the need is urgent.

I have found it incredibly frustrating to hear the repeated line from the Chancellor that these households will receive support anyway through the cut to electricity bills announced in the Budget. That is of course true, but their biggest outlay on energy by far is on heating oil. If a person does not use electricity to heat their home or their water, the impact of electricity prices is far, far smaller. The Government continue to demand that they be grateful for that small mercy, which sort of implies that they should stop asking for more, and that is starting to grate slightly on my constituents—and on me. I ask the Minister to acknowledge the profile of energy use in rural areas and perhaps reconsider that approach.

Local government, however, is stepping up on this crisis. It is dishing out the Government support, which is no mean feat, and finding its own ways to support communities. Liberal Democrat-run North Norfolk district council has allocated £50,000 to support households that have been plunged into fuel poverty due to these rising costs. That was set up within days of the crisis by Councillor Lucy Shires, our finance portfolio holder, and will be distributed to vulnerable households by North Norfolk Foodbank. They stepped up while the Government were still trying to work out their sums, and that has been hugely welcomed by my constituents.

Looking to the future, we must establish a cap on the cost of heating oil. As many hon. Members have said, the two-tier system of price protection for those using gas and electricity and for my constituents using heating oil is wrong and has gone unchecked for too long. We saw many prices surge well beyond the actual cost of oil on the global market, and there is a real risk that unfair margins are being made. People will say that it cannot be done. In fact, the Minister might do so, but I gently remind him that the same was said of the energy price cap, which is now accepted across the political spectrum. We can take tough decisions and develop tricky policies. That is what we were sent here to do. I offer the Minister my support—I am sure Members of other parties do too—in developing proposals that will support and work for rural residents everywhere. As Grahame from Thursford told me:

“The Government’s response in relation to this is simply not good enough. A price cap is the way forward.”

Further to that, I hope that the investigation that the Competition and Markets Authority is undertaking will allow the Government to introduce a better set of regulations for the industry. In fact, much of the industry would welcome that. There are many good businesses out there that behave in the best interests of their customers, and they do not want to be dragged down by bad actors. Ensuring that everyone is held to the same standards is good for the industry and consumers.

Although we are discussing heating oil today, I urge the Minister not to forget those who rely on LPG. They may be fewer in number, but their need is just as great. They often feel ignored in such conversations, and it is vital that we address their struggles too. They are often hit just as hard by price spikes, and they need protection.

Beyond that, we need to ensure that our homes are cheaper to heat. We should have been fixing the roof when the sun was shining—perhaps literally. It is time for an emergency programme of upgrades to make our homes fit for the future—well insulated, energy efficient and with renewable alternatives.

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

I thank my hon. Friend for securing this debate. More than 55% of households in Brecon, Radnor and Cwm Tawe are off grid. I am grateful to him for mentioning LPG. As he knows, residents who rely on LPG did not get support from the Conservatives when this last happened back in 2022. Does he agree that we need to go further and provide support to people who rely on all fuel types?

[Steff Aquarone]

I totally agree. It is the same cash-flow problem, the same price peaking problem and the same issue of intermittent delivery—because people do not refill every week or every month—but it is a different slice of the petroleum refinement process, so it is volatile in a slightly different way. In some cases, it is even more problematically volatile, so I thank my hon. Friend for reinforcing that point.

Well-insulated homes powered by renewable energy will prepare us for whatever volatile fossil fuel markets may do down the line and reduce my constituents’ exposure to the effects of the late-night proclamations of President Trump. I want to be clear with the Minister: residents in North Norfolk should not be poorer because they live in a rural area. We face unique challenges, and we accept that, but we should not be punished for them. The Government have a responsibility to step up and help where necessary, and that is what I am calling on them to do today. If we were in power, Liberal Democrats would be stepping up for Britain; the Government must do so, too.

[Several hon. Members rose—]

--- Later in debate ---

[Steff Aquarone]

A couple of years ago, I recall a senior former Secretary of State from the Conservative party, who shall remain nameless for the purpose of this anecdote, saying how annoying it was that the Liberal Democrats had gained 72 seats. Previously, they knew we would work out the right answer to these complicated challenges and they could steal the ideas with pleasure without anybody knowing, because we did not have a platform—so how inconvenient it was now that we had one! If individual Members want to know, I will tell them who said that to me.

The speech from my hon. Friend the Member for South Cambridgeshire (Pippa Heylings) reminded me that these problems are solvable and that the Liberal Democrats have plans to solve them. In particular, we have the longer-term vision for bringing about a future where energy is produced and used in Great Britain, as my hon. Friend the Member for Stratford-on-Avon (Manuela Perteghella) said.

I do not have time to reflect on all the valuable contributions from Members across the House, of which there were a great many, and it would be discourteous to suggest that only my party has added to this debate. We have been enriched by contributions from all corners of the country and almost all corners of the House. I note the absence of any contributions from Reform Members, which is regrettable; I believe that 2,000 houses in Clacton and 6,000 in Newark rely on heating oil. As they cheered the war in Iran, it is frankly embarrassing that they are not here to defend some of the consequences.

On a note of consensus and optimism, I do think that the Liberal Democrats have offers and ideas to bring to the table, whether it is about a closer relationship with the European Union or tackling the water companies. We are not ashamed to have our ideas taken forward in somebody else’s name. There are many things we want to contribute to this, and I am sure my colleagues will be just as willing as I am to do so.

I thank the Minister for his response. I am optimistic about the progress that he has indicated—it just cannot come soon enough.

Question put and agreed to.

Resolved,

That this House has considered Government support for the cost of heating oil.