The Government has introduced an Alternative Fuel Payment of £200 to support households not eligible for the Energy Price Guarantee who use alternative fuels, such as heating oil, liquefied petroleum gas (LPG), coal or biomass, to heat their homes. The payment will ensure that a typical customer using heating oil does not face a higher rate of growth in their heating costs since last winter, in comparison to those using mains gas who are supported by the Energy Price Guarantee.
The vast majority of Alternative Fuel Payments eligible households in Great Britain will receive payment automatically in February via their electricity supplier with no need to take any action, and we anticipate this payment being made shortly after the Energy Bills Support Scheme Alternative Funding has opened. There will be a small number of customers who are unable to receive the funding automatically, for instance households in the UK who are located in areas on the gas grid but do not have a gas connection, and we will ensure there is a route for those households to apply for and receive the £200 support. These customers will be able to do so in February, through the same GOV.UK portal as the one that will be used to apply for support under the Energy Bill Support Scheme Alternative Funding scheme.
The Government will be asking Local Authorities (LAs) that are responsible for council tax records and collection (“Billing Authorities”) to act as the delivery bodies for the Alternative Funding. LAs are well placed to deliver this support as they understand the local communities they serve, the ability to administer grant application processes and protect public money by mitigating against the risks of fraud and payment error.
While the Government understands that speed is of the essence, it must do all it can to prevent errors that could result either in households not receiving the support they need, or in a loss of public money. Online applications will open this month for households in England, Scotland and Wales who are eligible for the £400 EBSS Alternative Funding to submit their details, alongside a helpline for those without online access.
