Keir Starmer has signalled that any taxpayer-funded support for household energy bills next winter will be targeted at the poorest families, rather than a universal bailout, as he warned the price shock from the Iran conflict could persist for months.
Speaking to the Commons liaison committee on Monday, the prime minister said ministers were examining “every lever” to mitigate the cost-of-living impact, ahead of an emergency Cobra meeting attended by the Bank of England governor. He stressed that the government was focused on what happens when the current energy price cap ends in June, and particularly the following autumn-winter period when household usage rises sharply.
Starmer indicated there would be no repeat of the £40bn universal support introduced under Liz Truss after Russia’s invasion of Ukraine, citing the state of public finances. He said the government was actively considering whether the Competition and Markets Authority should receive extra powers to prevent companies exploiting the conflict through price gouging or profiteering.
The chancellor, Rachel Reeves, is expected to update MPs on Tuesday on energy supply security and the broader economic impact, but will not announce specific consumer support packages yet. Starmer also confirmed that despite Donald Trump’s decision to pause US strikes on Iranian power plants, planning must assume the conflict could continue for some time.
Separately, the prime minister said the delayed defence investment plan was on his desk and would be “finalised soon”, acknowledging for the first time that the Treasury and Ministry of Defence had been in disagreement over funding.
