Rural households to receive £200 energy payouts

Rural households with off-grid power sources are set to receive a £200 government energy bill support payment.

Payments are expected to reach almost 2m households using alternative energy sources, such as heating oil, biomass and liquefied petroleum gas (LPG).

See also: Pig aid scheme opens in Northern Ireland

The support is being made available from 6 February under the Alternative Fuel Payment (AFP) scheme, which was set up to offset soaring domestic energy bills after Russia’s invasion of Ukraine.

A spokesperson for the Department for Business, Energy and Industrial Strategy (BEIS) said that payments would be made automatically to most customers as a credit on their electricity bills.

However, some may need to apply for the support later this month, the spokesperson added. This is likely to apply to people living in caravans and park homes with no direct energy supplier.

Anyone in this situation will need to apply for the payment through an online portal to be launched later in February.

Businesses using alternative fuels will also soon receive a £150 credit on bills from the Non-Domestic Alternative Fuel Payment scheme (ND-AFP).

Payouts are expected to begin later in February, and there is a target of reaching all eligible businesses by 10 March.

Lobbying success

The NFU has hailed the payments as a victory after it successfully lobbied for off-grid energy users to receive a better deal than the original £100/household level set by the government.

The domestic AFP support amount was doubled to £200 in the Autumn Statement after the NFU petitioned the BEIS.

NFU president Minette Batters said: “Many farmers living in rural areas, especially those who live off-grid, were worried that they would be overlooked when it came to energy support, and it’s a relief to know that this scheme will deliver for all farming households.”