UK government urged to protect thousands of Welsh households against heating crisis

Hayley Jones

The UK Government has been urged to take measures to assess the impact of rising fuel costs on households and businesses across Wales, particularly in rural areas where many homes are not connected to mains gas.

During an economic statement, Plaid Cymru MP Ben Lake called on the government to offer payments to support off-grid households, similar to measures introduced after Russia’s invasion of Ukraine.

Mr Lake said: “Whilst I welcome the government’s commitment to reconsider the regulation of the heating oil and LPG (liquefied petroleum gas) sectors, such efforts will only provide relief for rural communities in the long term.

“Such is the severity of situation currently facing off-grid households and businesses the government must bring forward support measures as a matter of urgency.

“Dozens of constituents have been in contact in recent days to report significant price increases, which are unaffordable for many. The financial consequences of the Iran crisis are acutely felt across Ceredigion Preseli.”

He said he had raised the issue directly with the Energy Minister and Chancellor Rachel Reeves during a meeting on Wednesday.

“Along with other Members of Parliament representing rural constituencies from across the UK, I urged them to consider short-term measures ranging from direct payment support for off-grid properties to temporarily exempting heating oil and LPG from VAT.

“Such measures would not detract from longer-term efforts to introduce enhanced regulatory protections, nor indeed action on any price gouging, but would at least offer some immediate help to households and businesses struggling with higher prices this week.”

Ceredigion Preseli has one of the highest proportions of homes without mains gas in Great Britain, with around 72% of households dependent on heating oil or LPG.

Rural communities across Wales face similar challenges, leaving thousands of households exposed to steep price increases.

Mr Lake said: “Immediate support is needed to prevent a financial crisis for families and businesses in rural Wales. Long-term regulation must follow to provide lasting protection.”

Rising Tensions

The Competition and Markets Authority has also been asked to monitor the heating oil market for potential price gouging.

A CMA spokesperson said: “We take reports of unfair pricing very seriously and will act where we find evidence of exploitation.”

Around 130,000 households in Wales rely on heating oil, mostly in rural areas not connected to mains gas. Oil and LPG are not subject to the same price regulation as mains gas, leaving consumers more exposed to fluctuations in global markets.

The pressure on households is mirrored on the roads, as drivers across the UK face rising fuel costs.

On Wednesday, the RAC said diesel prices had risen by nearly 9% since February 28, while petrol prices were on average 6% higher over the same period.

RAC head of policy Simon Williams said: “Drivers tell us the cost of motoring is a major concern, and fuel is a huge contributor to that, so making sure they’re paying a fair price at the pumps is essential.

“For that reason, we welcome the competition watchdog’s scrutiny of what’s happening on forecourts across the country.

“RAC fuel watch data shows average prices have rocketed in under two weeks, with the average price of petrol increasing by 7p to 140p a litre and diesel by 16p to 158p. This has added £4 and £8 to the cost of filling up a family car.”