Alternative fuel payment: eligibility and claims

Households in the UK not connected to the mains gas grid often face unique challenges when it comes to heating their homes. The Alternative Fuel Payment (AFP) was a government initiative designed to provide financial support to these off-grid homes during the winter of 2022-2023. While the application window for this specific scheme has now closed, understanding its criteria and how it was administered remains helpful for those seeking information on past support.

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What was the alternative fuel payment (AFP)?

Understanding the one-off payment

The AFP was a one-off £200 payment from the UK government, specifically designed to help households with their energy costs during the winter of 2022-2023. This grant aimed to ensure that homes using alternative fuels did not experience a disproportionately higher increase in heating costs compared to those on the mains gas grid, who received support through other schemes. The Department for Energy Security and Net Zero (DESNZ) administered the scheme, with electricity suppliers delivering the payments.

Who was the AFP for?

The AFP targeted approximately two million households in Great Britain and Northern Ireland that were not connected to the mains gas grid. This included a wide range of properties, from rural homes to those in areas predominantly connected to the gas grid but still relying on alternative heating methods. The payment was for domestic properties that used alternative fuels as their main heating source.

Were you eligible for the alternative fuel payment?

Off-grid households and alternative fuel types

Eligibility for the AFP primarily depended on a household's heating method. You were eligible if your home was not connected to the mains gas grid and you used alternative fuels as your main way to heat your home. These alternative fuels included:

• Heating oil (kerosene)
• Liquefied petroleum gas (LPG)
• Biomass, such as wood pellets or logs
• Coal or other solid fuels

Property types and residency requirements

The scheme applied to domestic properties across Great Britain and Northern Ireland. Even if a household received the broader £400 Energy Bills Support Scheme (EBSS), they could still qualify for the £200 AFP if they met the alternative fuel criteria. The EBSS provided a £400 discount to most households with a domestic electricity connection in Great Britain, paid over six months between October 2022 and March 2023.

Situations that may affect eligibility

While most eligible households were identified automatically, some specific situations required a manual application. This included households that did not have a direct relationship with an electricity supplier, or those living in an area connected to the gas grid but still primarily using alternative fuels for heating.

How the alternative fuel payment was made

Automatic payments via electricity suppliers

Most households eligible for the £200 payment received it automatically through their electricity supplier, typically from February 2023 onwards. The method of payment varied depending on how you paid for your electricity:

• Credit meters (Direct Debit, cash, or cheque): The payment appeared as a £200 credit on your electricity bill, usually in March. If this resulted in a credit balance, you could request a refund.
• Smart prepayment meters: The £200 credit was loaded directly onto your electricity meter.
• Traditional prepayment meters: You would have received a digital code via PayPoint. This code could be redeemed for a direct bank payment or as two £100 cash refunds at a participating PayPoint retailer. Identification, such as a UK driving licence or bank statement, was required to redeem the voucher.

The application process for non-automatic payments

A separate application process was available for a minority of households who did not receive the payment automatically. This manual application portal was accessible via the GOV.UK website and was open until 31 May 2023. Applicants needed to provide their name, address, bank account details, and proof of alternative fuel purchases totalling £200 or more, made between June 2022 and May 2023.

Payment timelines and methods

The government announced that the AFP would begin to be processed from 6 February 2023. Payments were generally made as a credit to electricity accounts or directly via vouchers or bank transfers for those who applied manually.

What to do if you haven't received your AFP

The application window for the AFP scheme has now closed. However, if you believe you were eligible and did not receive the payment, there are still steps you could take.

Checking your bank and electricity statements

First, thoroughly check your bank statements and electricity bills from February and March 2023 for a £200 credit or payment. The payment might have been listed simply as "AFP" or a similar government energy support reference.

Troubleshooting common payment issues

Common issues included delays in payment or situations where households were eligible but not automatically identified. If you paid by prepayment meter, ensure you checked for the digital code or voucher, which may have been sent by post or text message.

Contacting official support channels

If you were eligible and did not receive your payment, you should contact your electricity supplier to check if you were missed. For further guidance, your local council or Citizens Advice can also provide support. It is important to direct all payment queries to official government channels or your electricity supplier, as Fuse Energy does not administer the AFP scheme.

AFP vs other UK energy support schemes

The AFP was one of several government initiatives to help households with energy costs. It is important to distinguish it from other support schemes.

Distinguishing from the Winter Fuel Payment

The Winter Fuel Payment is a separate, tax-free payment designed to help older people with their heating bills. For winter 2026 to 2027, you are eligible if you were born before 28 June 1960. The standard household amounts are typically £200 or £300, with payments ranging from £100 to £300 depending on age and living arrangements. From winter 2025/26, the payment became universal again for those over State Pension age in England and Wales, with HMRC recovering the full amount via tax code if your total taxable income is over £35,000 a year. Unlike the AFP, it is paid regardless of the specific fuel type used or the temperature outside.

Comparing with the cold weather payment

The Cold Weather Payment provides £25 for each 7-day period of very cold weather between 1 November and 31 March. To qualify, you must be receiving certain benefits, including Pension Credit, Income Support, or Universal Credit. This payment is automatically made into the same account as your other benefits and is specifically triggered when the average temperature in your area is recorded as, or forecast to be, 0°C or below for seven consecutive days.

Understanding broader government energy grants

Beyond the AFP, Winter Fuel Payment, and Cold Weather Payment, the UK government has offered various other energy grants and support schemes. These can include the Warm Home Discount Scheme, which offers a one-off £150 discount off your electricity bill for some low-income households. The Warm Home Discount Scheme for winter 2026 to 2027 will reopen in October 2026. Fuse Energy is a participating supplier in this scheme. Always check official government resources or Citizens Advice for the most up-to-date information on available support.

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