The Alternative Fuel Payment (AFP) was a one-off government payment of £200, introduced to support UK households using alternative fuels for heating during the winter of 2022-2023. This initiative aimed to help off-grid homes manage rising energy costs. While the AFP scheme has now concluded, understanding how such support schemes operated can help you make informed decisions about your energy use.
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The AFP was a specific government grant designed to help households that relied on fuels other than mains gas for their heating needs. It formed part of a wider package of support introduced during a period of increased energy prices.
Purpose of the payment
The primary purpose of the AFP was to provide financial relief to households not connected to the main gas grid, who therefore could not benefit from other government support schemes aimed at mains gas users. The £200 payment was intended to offset the higher costs associated with alternative heating fuels during the winter of 2022-2023. It was a non-repayable discount from the government.
Who the scheme supported
The scheme specifically targeted around two million households in Great Britain that used alternative fuels as their main heating source. This included fuels such as heating oil, liquefied petroleum gas (LPG), biomass (like wood pellets or logs), or coal. This support was crucial for off-grid homes, which often faced different pricing structures and delivery challenges compared to those on the mains gas network.
Eligibility for the AFP was determined by specific criteria, primarily focusing on a household's heating method and its connection to the energy grid.
Off-grid heating requirements
To be eligible, your home must not have been connected to the mains gas grid, and you must have used alternative fuels as your primary method for heating. This included fuels like heating oil, LPG, and biomass. Households connected to the mains gas grid were generally not eligible for the AFP through their electricity supplier, even if they also used some alternative fuels.
Household criteria
The payment was a one-off grant for domestic customers. Even if a household received the broader Energy Bills Support Scheme (EBSS) discount, they could still be eligible for the AFP if they met the alternative fuel criteria.
When the scheme was active
The AFP scheme was active for the winter of 2022-2023. Payments began to be made from February 2023. The scheme officially closed for delivery on 30 June 2023.
The method of receiving the AFP varied, with most eligible households getting the payment automatically, while others needed to apply directly.
Automatic payments via electricity suppliers
Most eligible households received the £200 payment automatically as a credit on their electricity bill. These payments typically appeared in February or March 2023. If you paid by Direct Debit, cash, or cheque, the £200 credit was applied to your electricity account. Electricity suppliers were responsible for delivering the payment to identified eligible customers.
Direct application process
A direct application process was available for a minority of households who did not receive the automatic payment. This included those who did not have a direct relationship with an electricity supplier, or those living in a gas-connected area but still primarily using alternative fuels for heating. The government's website provided guidance and an application portal for these cases. The application window for this portal was extended until May 2023, allowing for evidence of fuel purchases from June 2022.
If you believed you were eligible for the AFP but did not receive it, there were steps you could have taken during the scheme's active period.
Checking your eligibility
First, you would have needed to verify that your household met all the eligibility criteria: primarily off-grid heating using alternative fuels for the winter of 2022-2023. Official guidance on the government's website or organisations like Citizens Advice could have helped clarify your situation.
Applying through the government portal
For those who did not receive the automatic payment, a portal was set up on the government's website for direct applications. This portal required details such as proof of address, bank account information, and evidence of alternative fuel purchases. The application window for this portal has now closed, as the scheme concluded in June 2023.
Contacting your local council
In some cases, local councils were involved in assisting residents with the AFP, particularly for those who needed to make a direct application or required further guidance.
It is important to distinguish the AFP from other government energy support schemes, as each had specific eligibility criteria and purposes.
Differentiating from the Winter Fuel Payment
The AFP was distinct from the Winter Fuel Payment. The Winter Fuel Payment is an annual payment of between £100 and £300 to help people of State Pension age with heating costs. While it is not directly taxed, the full amount can be recovered via the tax system for those with a total taxable income over £35,000 a year. The AFP, however, was a one-off payment specifically for off-grid households using alternative fuels, regardless of age, for the 2022-2023 winter. The Winter Fuel Payment is an ongoing scheme for pensioners.
Other available heating oil and LPG support
The AFP was one of several measures introduced to help households with energy costs. Other schemes, such as the EBSS, provided a £400 discount to most domestic electricity customers. This discount was applied automatically by energy suppliers in six monthly instalments from October 2022 to March 2023. While the AFP scheme has concluded, households struggling with energy bills can still explore other potential grants and benefits through organisations like Citizens Advice1 or the UK Government's help with energy bills page.
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References
- Citizens Advice. Grants and benefits to help you pay your energy bills
