Chancellor Rachel Reeves has ruled out universal support for energy bills, arguing that any future help will be targeted at those most in need. She criticised the approach taken by Liz Truss’s government as unaffordable and irresponsible, saying it pushed up borrowing, interest rates, inflation and mortgage costs.
Reeves said the government is focused on longer-term measures to reduce bills for all, alongside targeted support for the poorest households. She stressed that any support would be delivered within the government’s fiscal rules to keep inflation and interest rates low.
The chancellor also confirmed she would review the planned fuel duty rise in September, but did not commit to delaying or cancelling it. She said an update on fuel pricing would be given within the next month.
Reeves announced that legislation to implement John Fingleton’s review into nuclear energy deregulation would be fast-tracked after the next King’s speech in May, aiming to speed up the construction of new plants.
Thinktanks such as the Resolution Foundation have backed a targeted approach, suggesting social tariffs for poorer households costing about £3.7bn a year. However, the Green party described Reeves’ response as weak, calling for more significant interventions to prevent a crisis.
