Committee publication · Correspondence · 3 June 2026
Correspondence with the Financial Secretary to the Treasury relating to support for energy bills in Northern Ireland, dated 24 April and 27 March 2026.
Summary
The Northern Ireland Affairs Committee seeks clarification from the Chancellor of the Exchequer on the status and flexibility of £81 million and £17 million in energy bill support allocated to Northern Ireland. The Chair identifies conflicting government messages: the Northern Ireland Secretary suggested the £81m could be repurposed for heating oil support, while Treasury indicated it is ringfenced for electricity schemes comparable to Great Britain.
Key findings
- Committee identified conflicting government messages on whether £81m Autumn Budget allocation for electricity bills can be repurposed for heating oil support in Northern Ireland
- Treasury confirmed AME cover will only fund schemes comparable to the 75 per cent Renewables Obligation funding model delivered in Great Britain, with flexibility on Northern Ireland Executive delivery method
- £17m of over £50m announced support allocated to Northern Ireland Executive, distributed using heating oil usage proportionality rather than Barnett formula, with expectation funds support most vulnerable households
- Committee questions adequacy of Treasury assessment of announced measures prior to introduction, given critical reaction from Northern Ireland political parties
- Government working with Northern Ireland Executive on business case for comparable Renewables Obligation scheme, with final design not yet finalised
Tone
ProceduralTopics
Key actors
Tonia Antoniazzi MP, Spencer Livermore, Rachel Reeves MP, Northern Ireland Affairs Committee, Northern Ireland Executive, UK Government Treasury, Northern Ireland Assembly Finance Committee
Notable line
“AME cover will only be provided for a comparable offer to funding 75 per cent of the domestic share of the Renewables Obligation via the Exchequer between 2026/27 and 2028/29 - the scheme that is …”
Key Quotes
“… we have identified conflicting messages from the Government on this matter.”
“The Northern Ireland Secretary has suggested that the £81 million Autumn Budget announcement, intended for cutting eletricity bills, could be repurposed for more targeted support in NI …”
“AME cover will only be provided for a comparable offer to funding 75 per cent of the domestic share of the Renewables Obligation via the Exchequer between 2026/27 and 2028/29 - the scheme that is …”
“It is for the Northern Ireland Executive to decide how they would like to deliver a comparable offer.”
“Given the unique circumstances, we have taken an exceptional approach by not applying the Barnett formula but instead basing proportionate funding on the level of heating oil use across the nations …”
Source · parliament.uk record ↗