Keir Starmer Announces £53 Million Energy Support Amid Iran Crisis
Prime Minister Keir Starmer has unveiled a £53 million support package for British families struggling with energy bills, during a major press conference in Downing Street. The announcement comes as fears escalate over the impact of the Iran conflict on global energy prices, with the Strait of Hormuz blockaded by Tehran.
Mr Starmer emphasised that his top priority is to assist working people with the cost of living through this crisis. He stated, "It's moments like this that tell you what a Government is about. My answer is clear. Whatever challenges lie ahead, this Government will always support working people."
Immediate Support for Vulnerable Households
The £53 million package is targeted at vulnerable households that rely on heating oil to warm their homes, particularly in regions like Northern Ireland, where around 60% of households use this fuel. This move follows warnings from Stormont Finance Minister John O'Dowd that any subsidy must be meaningful to address sharp price rises since the war began.
In addition to this support, the PM outlined five key steps to tackle the cost of living:
- Capping energy bills until the end of June, saving the average household £117.
- Providing a Warm Homes Discount of £150 for the most vulnerable.
- Issuing a legal direction to energy companies to pass savings directly to customers.
- Extending the cut in fuel duty until September and introducing a cheap fuel finder tool.
- Pushing ahead with long-term plans for Britain's energy security and independence.
Caution on Military Involvement and Energy Price Cap
Mr Starmer faced questions about Donald Trump's demands for Royal Navy warships to help secure the Strait of Hormuz, a critical oil and gas route. The PM revealed he discussed the issue with President Trump, stating, "We're working with allies on a viable plan to reopen the Strait, but it is not straightforward." The UK is considering sending mine-hunting drones to the region instead of warships.
Regarding the energy price cap, which is due to expire in July, Mr Starmer said, "We're not ruling anything out, but it is very difficult to say at this juncture what the position will be." He warned that if the conflict continues, households could face dramatic hikes in bills, as gas and electricity prices are currently fixed by Ofgem's cap until June.
Political Criticism and Economic Measures
The PM launched an attack on opposition leaders, accusing them of recklessly advocating for UK involvement in the Iran war. He asserted, "Others would have rushed the UK headlong into this war without a proper plan. That is not leading; it's following." He also addressed concerns about energy firms exploiting the crisis, vowing legal action against any companies found breaking the law.
Energy Secretary Ed Miliband has accelerated support measures, including making low-cost solar panels available in supermarkets and bringing forward the next renewables auction to July. Meanwhile, fuel prices have surged, with diesel reaching its highest level since November 2023, and oil prices exceeding $100 a barrel for the first time since 2022.
Mr Starmer concluded by reiterating his commitment to a swift resolution in the Middle East, stating, "Ending the war is the quickest way to reduce the cost of living." He also affirmed support for Ukraine, ensuring the Iran conflict does not benefit Putin, and plans to meet President Zelensky soon.
