Households facing skyrocketing energy costs may receive targeted assistance, as Chancellor Rachel Reeves outlines plans to support vulnerable groups. She emphasizes aid for those who truly need it, with a specific package for heating oil users—who fall outside the energy price cap—due next week.
Heating Oil Support on the Horizon
The initiative addresses fears that the Middle East conflict will drive up prices further. Heating oil costs have already doubled since the crisis began. In recent discussions, the Chancellor confirms: “I have found the money and we’ve worked through with MPs and others a response for people who are not protected by the energy price cap. We’re giving greater support to those who really need it.”
Upcoming Energy Bill Surge Forecast
Analysts at Cornwall Insight predict a 10% rise in household energy bills starting July, driven by sharp wholesale gas price increases. This would push Ofgem’s price cap for July to September to £1,801 annually for a typical dual-fuel home—an £160 jump, or 10%, from April’s level.
Cautious Approach to Fiscal Response
The Chancellor highlights ongoing work within the Iran response board, comprising Treasury ministers and officials, to explore targeted measures. She states: “We’ve got some time, and we are working through… different approaches that we could take, including looking at more targeted options. We are working through different scenarios at the moment and I don’t want to suggest that we’re going to do something that we know we’re not able to deliver. I am concerned given how high our debt is, the debt that we inherited, and so I want to look at what the different options available would be.”
She rules out broad energy bailouts, similar to the £35 billion scheme following Russia’s invasion of Ukraine over six months. “It is important even when there is an economic shock—or perhaps particularly when there’s an economic shock—that you continue to be disciplined about your use of public money,” the Chancellor adds.
