Chancellor was responding to questions in the Commons on the issue hitting 60 per cent of homes as residents described ‘in immediate crisis’
Chancellor Rachel Reeves has given an update around a crippling 81% increase in a week of home heating oil – used by more than 60 per cent of Northern Ireland homes. At Treasury questions the Chancellor was challenged over her response to the situation which has left thousands struggling to afford to heat their homes.
And she told MPs there was ‘no reason’ a company should have doubled prices – and pledged action. Previously Stormont’s Finance Minister John O’Dowd called for direct support from the UK Government to people in Northern Ireland struggling with the rise in the cost of home heating oil
At the Commons Liberal Democrat John Milne asked: “Even while sitting here, I have had word from a constituent whose heating oil cost has risen, in one go, to 129.9p plus VAT per litre. I recognise that the Chancellor has been pressed by a number of Members on this. Can she assure us of immediate action, as vulnerable residents are in immediate crisis? “
Ms Reeves replied: “While only 4% of people in Great Britain use heating oil, I recognise that this is a particular issue for many constituents, and in Northern Ireland the figure is more than 60%. We are working closely with the Competition and Markets Authority to stop price gouging. There is no reason why a company should be charging twice as much as it was for heating oil; we need to put a stop to those practices.”
Tory John Lamont added: “Over 50% of properties in the Scottish Borders are not on the mains gas grid and are completely dependent on heating oil. They are being hammered by the increase to the price of heating oil over the last week or so, and they need to see concrete action from this Government to stop the excessive prices and the profiteering. What are the Government going to do?”
Ms Reeves said: “I agree with the hon. Gentleman. We are trying to de-escalate the conflict in the middle east, because if we can get vessels moving again through the strait of Hormuz, we will deal with a lot of these problems. I am working closely with both Lloyd’s of London—I met its representatives yesterday—and my G7 colleagues to ensure that those vessels can get moving again.
“At the same time, I think that everybody has heard the stories in this Chamber and from our constituents about the problems of price gouging. “
Paul Waugh, Lab Co-op said: “My constituent in Rochdale, Louise Marshall, wrote to me this weekend because she is worried sick about the massive price rise she is facing for heating oil. Can the Chancellor assure me, notwithstanding the meeting we are all going to have with the Financial Secretary to the Treasury, that we can be absolutely crystal clear that under this Government, we will not tolerate price gouging or war profiteering from oil companies that try to rip off their customers?”
Ms Reeves said: “I absolutely agree with my hon. Friend. The price gouging that we see is totally unacceptable, which is why we have already asked the Competition and Markets Authority to look at this. Whether we are talking about petrol at the pumps or heating oil, there is no excuse for any business to use this as an opportunity to rip off customers.”
The situation has also been raised by personal finance expert Martin Lewis, who said on X: “The home heating oil situation is terrible for many unlucky enough to be about to refill. The solutions of ‘comparison’ and ‘collective buying’ are weak at this time. The outrage is this is an unregulated, unprotected, market (we’ve long called for that to change). We are subserving many, especially those who live in rural communities.”
John O’Dowd said the powersharing Executive does not have the financial “firepower” to fund any relief scheme. The minister said he believed the cost of any such initiative could run into hundreds of millions of pounds.
Mr O’Dowd said he had written to the Chief Secretary to the Treasury James Murray to ask for direct engagement with the Stormont Executive. He said: “The Executive is best placed to represent the people here and put across the case for supported interventions in that matter.
“The Minister for the Economy (Caoimhe Archibald) has also been in regular contact with ministers both in London and Dublin in relation to the ongoing energy crisis and the call for direct intervention from the British Government in relation to support for businesses and homeowners here in relation to the ongoing crisis in relation to the significantly rising cost of home heating oil.
“We will continue that engagement, it is vitally important that that support comes from Westminster. The Executive simply does not have the ability to intervene at the scale of challenges that are being faced at this stage.”
Mr O’Dowd said he believed a relief scheme was necessary and that it is the “responsibility of the British Government to fund that scheme”.
