Rachel Reeves methods to assist with vitality prices amid Middle East disaster
The Chancellor said she would give support ‘to those who really need it’, with a package of help for people who rely on heating oil – which is not covered by the energy price cap – expected next week
The Chancellor promised support to those who needed it(Image: Jack Taylor, Getty Images)
Households struggling with soaring energy bills could be boosted with targeted support, Rachel Reeves has suggested.
The Chancellor said she would give support “to those who really need it”, with a package of help for people who rely on heating oil – which is not covered by the energy price cap – expected next week.
It comes amid fears over the impact of the conflict in the Middle East on prices, with the price of heating oil doubling since the start of the crisis.
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In an interview with The Times, Ms Reeves indicated a subsidy package would be set out next week: “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.”
Analysts at Cornwall Insight have forecast that household energy bills could rise by 10% from July following sharp increases in wholesale gas prices. This would mean Ofgem’s price cap for July to September surges to £1,801 a year for a typical dual fuel household – an increase of £160 or 10% on April’s cap.
The Chancellor said: “We’ve got some time, and we are working through in the Iran response board (a group of Treasury ministers and officials) 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 played down the prospect of a blanket energy bailout for households, as happened in the wake of Russia ’s invasion of Ukraine at the cost of about £35 billion over a six-month period. Ms Reeves said: “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.”
