Prime Minister Keir Starmer has indicated that the government is exploring support for household bills next winter, as the energy price shock from the Iran conflict may persist for months. Speaking to the Commons liaison committee on Monday, Starmer said there may not be a 'quick and early end' to the crisis, despite Donald Trump pausing US strikes on Iranian power plants.
Starmer suggested any taxpayer-funded help would likely target the poorest households rather than a universal bailout, citing the £40bn cost of the previous universal support under Liz Truss during Russia's invasion of Ukraine. He promised to examine 'every lever that's available' to assist with the cost of living, with ministers discussing contingency plans at a Cobra meeting attended by the Bank of England governor.
Chancellor Rachel Reeves is expected to update MPs on Tuesday on plans to improve UK energy supply security and the broader economic impact, but will not announce specific consumer support packages. Instead, ministers are working on means-testing support when the current energy price cap ends in June and the next one begins in autumn, when energy consumption and bills are higher.
Starmer also said the government is considering giving the Competition and Markets Authority 'further teeth' to prevent companies exploiting the war through price gouging or profiteering. He acknowledged the difficulty of planning without knowing when the conflict will end, but stressed the need to prepare for a prolonged crisis.
