In a significant move to address growing economic pressures, Prime Minister Keir Starmer is set to unveil a major energy support package during a press conference at Downing Street on Monday. The intervention aims to reassure British families that the government will stand by them "whatever challenge lies ahead" as the ongoing conflict in the Middle East continues to impact global energy markets.
Targeted Assistance for Heating Oil Users
The Prime Minister will announce plans worth tens of millions of pounds specifically designed to support households that rely on heating oil to warm their homes. This targeted support comes in response to warnings from MPs in rural areas, where constituents living in fuel poverty have struggled with escalating costs. During a recent visit to Northern Ireland, where approximately 60% of households use heating oil, Starmer witnessed firsthand the sharp price increases that have occurred since the outbreak of the war.
Strong Warning Against Price Exploitation
In what is described as a searing warning, Starmer will declare: "I will not tolerate companies trying to exploit this crisis to make money from working people... If the companies have broken the law, there will be legal action." He will emphasize that his government's top priority is helping working people manage "the cost of living through this crisis" as fears mount over spiralling energy bills.
The Prime Minister will further state: "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. That is my first instinct – my first priority – to help you with the cost of living through this crisis."
Chancellor Confirms Funding Availability
Chancellor Rachel Reeves confirmed over the weekend that she had "found the money" to provide extra energy support for those who are not protected by the existing energy price cap. This announcement comes as the government prepares to implement measures that address the specific vulnerabilities of heating oil users who fall outside standard regulatory protections.
Potential Fuel Duty Freeze Reversal
Energy Secretary Ed Miliband hinted on Sunday that ministers might consider scrapping a planned fuel duty hike in response to rising energy prices. When asked about plans to end the fuel duty freeze in September, Miliband responded: "Let me answer that by saying this, which is, I'll be candid with you, we don't know how long this conflict is going to go on and therefore, with five months to go until September, we will have to see where we are, obviously."
He added: "We will stand by the British people in this crisis, and we'll do what it takes to do that." The fuel duty, currently set at 52.95p per litre, is scheduled to rise for the first time in 16 years at the end of August.
Accelerated Energy Help Package
Miliband also outlined an accelerated package of energy assistance measures on Sunday. As part of this initiative, low-cost solar panels that families can purchase at supermarkets and install on balconies or other outdoor spaces will become available in the UK for the first time. Ministers will collaborate with industry partners to bring these products to market as quickly as possible.
The package will additionally see the next annual renewables auction brought forward to July. The government's most recent auction round resulted in the single biggest procurement of offshore wind that Europe has witnessed, demonstrating a commitment to renewable energy expansion.
Regulatory Concerns and Market Vulnerabilities
In an interview with the Sunday Mirror, Miliband promised government intervention if companies engage in unfair practices that would negatively impact customers facing home heating oil price increases. Heating oil is not covered by Ofgem's energy price cap, unlike gas and electricity bills which are protected until June.
The Energy Secretary expressed concern that if the Middle East conflict continues and Iran maintains its stranglehold on shipping in the Strait of Hormuz, households could face dramatic energy price hikes. This vulnerability underscores the urgency of the government's support measures.
Starmer will conclude his announcement by vowing to continue working toward a "swift resolution" to the Middle East situation, adding: "Because there is no question that ending the war is the quickest way to reduce the cost of living." The comprehensive energy support package represents the government's multifaceted approach to addressing both immediate economic pressures and longer-term energy security concerns.
