Visit our new blog for our most recent update on the Government's Domestic Alternative Fuel Payment - January 2023
Firstly, we'd like to say a happy New Year to you and yours from all of us at Northern Energy.
Rising energy prices along with the cost of energy crisis have put a strain on many households and businesses alike throughout the UK this winter, and clearly there are many in need of financial support. We wanted to let you know that vital help with energy bills is on its way for off-grid homes across Great Britain and Northern Ireland with the Government’s Alternative Fuel Payment (AFP) Scheme. The scheme was originally announced in September last year as part of the Government’s Energy Prices Bill measures and in this blog we wanted to tell you a bit about it, how much you can expect to receive, and when and how it will be paid.
Who will benefit from The Alternative Payment Scheme?
Whilst around 83.65% of the UK’s population live in urban areas according to liveoffgrid.co.uk, the remainder, over 5 million people in the UK and the Republic of Ireland, live off-grid and do not have access to a mains gas supply. As such, these households have to rely on other energy sources to heat their homes, alternatives such as heating oil, liquified petroleum gas (LPG), biomass, solar thermal or heat pumps, for instance. The Alternative Payment Scheme will be directed to these off-grid households.
How much will be paid?
The one-off fixed payment was originally set at £100, but it was announced by Chancellor, Jeremy Hunt, in his Autumn statement on 17th November 2022 that it was being increased to £200.
A spokesman for the UK Government said ‘We recognise people are struggling with the rising cost of living, including those who use heating oil, and fuels other than gas to warm their homes. That is why we’ve increased the Alternative Fuel Payment to £200 and are committed to delivering this to customers as soon as possible’.
When will the payment be made?
Aiming to provide equivalent support to those that use mains gas, the Alternative Payment Scheme was introduced to help those householders living in off-grid properties with the cost of purchasing their fuel this winter. Those using alternative energy sources such as domestic heating oil or LPG will receive the one-off payment in February 2023 as confirmed by the UK Government in their latest announcement on 19th December 2022.
How will householders receive the payment?
Most domestic householders will not need to take any action as they will receive the payment automatically in February through their electricity supplier alongside the Electricity Bills Support Scheme payments.
However, a small number of households won’t receive the payment automatically. Householders who do not have an account with an electricity supplier and who are off the mains gas grid will be able to apply through a Government portal which is yet to launch and will be made available in February. We'll share it when it does launch, so check back for industry news and updates.
Should I wait for my payment before I order more heating oil?
We hope you’ve found this blog helpful, but we have one further bit of advice this winter, Along with UKIFDA, the trade association for the liquid fuels distribution industry in the UK and Ireland, we would highly recommend you order your heating oil as soon as possible if you are running low as winter is always a busy period where there is a surge in demand.
If you would like a competitive quote for your heating oil, call us today on 01423 770 666, or alternatively you can get a quick quote online 24/7.
Alternatively, if you use LPG to fuel your home, or are thinking about switching to LPG from another energy source and would like to speak to us, we’re on hand to offer you help and advice whenever needed. Just give us a call us 01423 772 789.
March 2023 update: Government launches secure online portal for alternative fuel payments!
Any more updates?
Check back here for more recent updates, we will update this blog with links to more up to date information.
- March 2023: The energy price cap has fallen, but bills will still rise. What’s going on?
- January 2023: Update on the government support for off-grid households
- January 2023: Update on the government's domestic alternative fuel payment