Dartmoor households face uncertainty over winter heating costs as Budget nears

Rural households across Devon could see long-awaited relief on their heating costs as Chancellor Rachel Reeves is reportedly weighing up a plan to cut VAT on energy bills from 5 per cent to zero in her upcoming Budget.

The move would cost the Treasury around £2.5 billion, save the average household about £80 a year, and offer some comfort to families facing another expensive winter.

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But for those living in off-grid communities across Dartmoor and rural Devon, the situation is not so simple.

In villages like Widecombe-in-the-Moor, Belstone and Postbridge, most homes are not connected to the mains gas network.

Instead, they rely on heating oil or LPG, both of which have seen steep price swings in recent years, and are not always covered by the same VAT rates or support schemes as electricity and mains gas.

The Treasury has yet to confirm whether any VAT cut would apply to off-grid fuels as well as traditional energy bills, a key detail that could determine whether rural households benefit equally.

ABOVE: Rachel Reeves MP, Chancellor of the Exchequer will release the full Budget on November 26 (Credit- Simon Walker / HM Treasury)

During the energy crisis, many off-grid households faced long waits for government support and saw their fuel bills rise sharply.

Local supplier warns rural homes could be “left behind”

Okehampton-based Moorland Fuels, which supplies thousands of households across Devon and Cornwall, said that clarity from the Government could not come soon enough.

Commenting on the Chancellor’s proposed plans, Abby Turner, Director at Moorland Fuels, told The Moorlander: “High energy bills are always a concern for householders, particularly as we enter the chillier winter months. For those on Dartmoor, thoughts will be turning to the cost of keeping their homes warm, which is why news of a potential reduction in VAT on energy bills would be widely welcomed.

“Given that the full details of the Chancellor’s proposals remain unclear at this stage, we are concerned that households dependent on heating oil may not benefit if the VAT exemption is limited only to mains gas and electricity.

“That’s why we are urging the Government not to leave rural off-grid communities behind in the Budget. On a £500 order for heating oil, a 5 per cent VAT cut would be worth a saving of £25, a meaningful amount for families and retirees struggling to make ends meet.”

ABOVE: Abby Turner, Moorland Fuels (Credit: MF)

Ms Turner also added that heating oil users already face uncertainty, with prices increasing significantly in recent weeks.

“In the past two weeks, we have seen the price of heating oil rise following President Trump’s implementation of sanctions on two of Russia’s largest oil companies. While these prices are still in line with last year, customers need greater certainty about what lies ahead,” she said.

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“Clarification on the proposed VAT cut would help deliver that, giving customers coming near to needing a top-up a better indication of whether they should do that now, or hold off until after the Autumn Budget.”

More customers ordering smaller deliveries to manage costs

Moorland Fuels also told The Moorlander that all of its domestic customers rely on heating oil, and that many are choosing smaller deliveries to help spread costs.

Since last year, the company has seen a rise in smaller orders, a trend partly driven by its decision to introduce minimum 300-litre deliveries for State Age pensioners, below the industry standard of 500 litres.

The scheme, launched after the Government ended Winter Fuel Payments, has since been extended to members of its Cosy Heating Club, allowing households to make smaller top-ups ahead of the winter season.

Turner warned that running out of oil can damage heating systems:

“Our advice is always to avoid running low as this can cause damage to heating systems if sludge is drawn from the bottom of the tank, potentially leaving households without heating and facing costly repairs.”

Energy experts urge wider help for off-grid homes

Energy experts have warned that even if VAT is removed, rural households may still see limited relief. 

Older, less efficient homes and higher delivery costs could mean heating still remains expensive far beyond the potential relief of tax.

The full details of the Chancellor’s Autumn Budget are expected later this month on November 26.