UK households face no universal energy bill aid as Iran war bites
UK households face no universal energy bill aid as Iran war bites
Labour signals targeted energy bill support only for those who need it most, as Iran war drives price pressures and criticism grows.
In a Commons statement, chancellor Rachel Reeves signalled there will be no universal help for energy bills as the country braces for higher prices tied to the Iran war. She said the government will focus on targeted support for those who need it most, with the details to be unveiled in about a month. Prices have been pushed up as Middle East tensions drive oil and gas costs, and the average annual household energy bill is forecast to rise by £332 in July. UK motorists have already paid £307m more in fuel increases because of the conflict.
Reeves contrasted the approach with the previous blanket support offered during the Ukraine conflict, arguing it left the country with higher debt and windfall benefits for wealthier households. She pledged contingency planning to keep costs down and said the plan would operate within iron-clad fiscal rules to keep inflation and interest rates as low as possible. She also announced meetings with supermarkets and banks to discuss what help they can offer customers, and gave the Competition and Markets Authority new powers to clamp down on price gouging.
The chancellor added: "Contingency planning is taking place for every eventuality so that we can keep costs down for everyone and provide support for those who need it most, acting within our iron-clad fiscal rules to keep inflation and interest rates as low as possible." She stressed the war is not one Britain started, but she warned it will have an impact on the economy.
As markets digest the remarks, households await the concrete measures next month while price pressures continue to bite at the pumps and on household bills.
