'Pitiful and underwhelming': Verdict from Northern Irish politicians on government's heating oil subsidy plans as questions remain about how it is supposed to work

The Northern Ireland economy minister John O’Dowd said that the support on offer could amount to little more than £35 per person – though this will depend on whether it is means-tested or not.

Meanwhile, home heating oil prices remained more-or-less steady today compared to Friday (though one of the six firms which the News Letter tracks lowered its prices by about 1%).

The overall cost of oil though remains almost double what it was before the Israeli/US attack on Iran began on February 28.

During last Thursday’s visit to the Province, the Prime Minister Keir Starmer spoke out against people being “ripped off” by rising fuel costs, and had pledged some kind of support for Northern Irish households.

today details began to emerge of what this will involve.

The UK government announced that £53m has been found to help those whose homes are warmed by heating oil (kerosene), accounting for some 60%-plus of all homes in the Province.

By contrast, according to the Office for National Statistics only about 3% of homes in England and Wales use it.

The government said that this £53m will be split as follows: £17m to Northern Ireland, £27m to England, £4.6m to Scotland, and £3.8m to Wales.

Northern Ireland’s £17m fund will be doled out by Stormont – but it is not clear at time of writing which department will look after it.

The government had said the funding is “targeted financial support, helping low-income households in rural communities”.

It is also not yet clear either whether this means the money will be limited to rural areas only, nor whether it will be restricted only to “low-income” households.

No timeframe has been given for when it will kick in.

Sinn Fein MLA Mr O’Dowd said that, if spread across all 480,600 Northern Irish homes that rely on oil, “this would amount to roughly £35 per household”, adding: “I think people will be genuinely shocked and disappointed at how limited that support is.

“Given the limited funding from Westminster I think it's only right and proper we target those on the lowest incomes.”

Ulster University economist Esmond Birnie tells the News Letter that this question of “how thinly do they spread the subsidy” is crucial, saying: "If they pay out to the fifth of households with lowest incomes (and identifying those would be tricky), that would amount to about £185 each.”

He added: “Perhaps they will limit to those in receipt of certain welfare benefits such as Pension Credit and Universal Credit. There is no ideal solution.

"What we should have had for some time now is an energy strategy to increase resilience and wean us off imported oil.”

First Minister Michelle O’Neill said the £17m is “a real slap in the face” which “doesn’t scratch the surface” of what is needed.

DUP MP Carla Lockhart said “at least the government now appears to be listening” – but that the sum “will not go far enough”.

"There are simpler and more effective measures available, such as reducing fuel duty, cutting VAT on home heating and making full use of our own gas and oil resources in the North Sea, but we are where we are,” she said.

DUP leader Gavin Robinson said that “to offer £20 or £30 at a time whenever costs have doubled – it won’t cut it”.

UUP MLA Robbie Butler said the idea of £35 per household is “quite pitiful, actually”, adding “we certainly would have liked to have seen a three-figure sum”.

TUV MP Jim Allister described the funding as "underwhelmingly modest”.

He also lamented that fact that parcelling out the £17m will be “left to the dysfunctional Stormont Executive, where dither and delay is usually the order of the day,” as opposed to it coming directly from London.

“Speedy dispersal probably necessitates a universal distribution, which, while not without its own unfairness, is better than Stormont getting into benefits-weighted means testing in which low-income-but-working families would be the big losers.

“Of greater long term significance would be meaningful regulation of oil wholesalers, because this seems to be where the gaming of the price to consumers is unrestrained.”

Alliance MP Sorcha Eastwood said there needs to be “quick, urgent action to get this support out the door,” but added that it also “needs to be targeted”.

“There’s absolutely no point in people who are able to pay their bills getting that support,” she said.

Meanwhile SDLP leader Claire Hanna said the money should be “targeted at those who need it most” adding: “The support announced by the Prime Minister today won’t do enough but instead of coming up with proposals to intervene, we will now see Executive parties lining up to criticise the UK Government alone.

"The finance minister has been non-committal, vague about what funds exist, and Sinn Fein and the DUP have been more interested in tearing lumps out of each other...

“Yes, the UK government should provide more support, but the Executive also needs to show some leadership.”

The News Letter tracks the price quoted by six different companies for home heating oil (one in each county).

Only one of the six firms – an outfit based in North Down – had changed its prices since Friday.

It was offering 500 litres for £615 – down from £621.

Here’s the rest of the list:

North Armagh: £567

Mid-Antrim: £615.83

South Tyrone: £599.81

Londonderry city: £599

West Fermanagh: £599