Prime Minister Keir Starmer has signalled that the government will provide financial support for household bills next winter, with a focus on the poorest households, as the energy price shock from the Iran conflict threatens to persist for months. Speaking to the Commons liaison committee on Monday, Starmer said ministers are examining 'every lever that's available' to help with the cost of living, ahead of an emergency Cobra meeting attended by the Bank of England governor.
Starmer indicated that any taxpayer-funded help would likely be means-tested rather than a universal bailout, avoiding a repeat of Liz Truss's £40bn support package during the Russia-Ukraine war. 'I'm acutely aware of how much it cost last time round, and I'm acutely aware of the state of the public finances,' he told MPs. The government is focusing on support when the current energy price cap ends in June and the following cap in autumn, when energy use rises.
Chancellor Rachel Reeves is expected to update MPs on Tuesday on plans to improve UK energy security and assess the economic impact of the Middle East crisis, but will not announce specific consumer support packages yet. Starmer also revealed that ministers are considering giving the Competition and Markets Authority 'further teeth' to prevent companies from profiteering during the conflict.
Despite US President Donald Trump postponing strikes on Iranian power plants, Starmer warned there may not be a 'quick and early end' to the conflict, and the government must plan for it to continue. He also faced questions on the delayed defence investment plan, which he said would be 'finalised soon' once funding is secured, acknowledging tensions between the Treasury and Ministry of Defence.
