The UK government is considering new UK energy support measures for households as global tensions push energy prices higher.
Officials say the support could help families manage rising living costs. However, ministers will decide the final plan based on how long the conflict continues. Ed Miliband said the government is preparing for several possible outcomes. He explained that ministers want to protect families if energy prices continue rising.
The energy secretary spoke during an interview on the Sunday with Laura Kuenssberg programme. He said the government will stand by people during the crisis. However, he warned that the scale of help will depend on the conflict’s impact on energy markets.
“If prices rise sharply, we must respond,” Miliband said. He added that officials are preparing for every scenario. Meanwhile, sources at 10 Downing Street confirmed that ministers are reviewing several options. These include universal support for all households.
Officials say the decision will depend on future oil and gas prices. Rachel Reeves previously told the Treasury Committee that targeted support could help lower-income families first. However, she also said the government is reviewing wider assistance plans.
At the same time, ministers are preparing immediate support for homes using heating oil. Keir Starmer is expected to announce a package aimed at around 1.7 million households. Many homes in England and Wales rely on kerosene heating systems.
Energy prices for those households have surged since tensions increased in the Middle East. The crisis intensified after disruption in the Strait of Hormuz. This key route carries a large share of the world’s oil supply.
When shipments slow in the strait, global energy costs usually rise quickly. As a result, ministers expect the conflict to affect British households.
Starmer will also warn energy suppliers against exploiting the crisis. He plans to stress that companies must follow the law. If companies break regulations, the government could take legal action.
Meanwhile, analysts warn that providing large-scale UK energy support could strain public finances. The Institute for Fiscal Studies said government budgets remain tighter than during the 2022 crisis.
Experts explained that borrowing costs have increased since then. Therefore, funding a large support package could require higher taxes. However, the government is still reviewing several options.
Energy bills are currently expected to fall by about seven percent in April. The average cap will drop to about £1,641. Nevertheless, analysts warn prices could rise again later this year.
At the same time, petrol prices have climbed to their highest level in 18 months. Data from the RAC confirmed the recent increase. Ministers are also reviewing a planned fuel duty increase due in September.
Miliband said the government will decide closer to the deadline. He also rejected calls for new drilling in the North Sea. Instead, he argued that Britain must invest in clean domestic energy.
Meanwhile, Claire Coutinho urged the government to reduce electricity costs instead of increasing public spending. She promoted the Conservative Party’s Cheap Power Plan. The proposal aims to cut electricity bills by around 20 percent.
Despite the debate, ministers continue reviewing emergency measures. The final decision on UK energy support will depend on how the global crisis develops.
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