The British government is looking to provide “targeted” help to poorer households to deal with the impact of rising energy costs due to the conflict in the Middle East, finance minister Rachel Reeves has said.
In an interview published on Saturday, Reeves told the Times that the government was looking at ways to help those at risk of rising energy prices, particularly those who depended on heating oil, but ruled out general aid for all households, saying they would not be able to afford it.
The Labor government, trailing in the UK Reform party’s election, has come under pressure from opponents to end the regulated household energy tax – due to be reviewed at the end of May – and scrap a planned increase in motor fuel duty in September.
“I have received money and we have worked with members of parliament (MPs) and others to answer for people who are not protected by the energy price limit. We provide great assistance to those who need it most,” he said about the program to help households that depended on heating oil.
More than a million households in the UK use oil for heating, particularly in rural areas where gas grid connection is not available. The highest concentration is in Northern Ireland, where almost half of households rely solely on oil.
Heating oil is not subject to government energy price caps, leaving those consumers more exposed to changes in global oil prices. Reeves told the Times The Treasury was modeling different scenarios depending on how long the Iran conflict lasted, including “more targeted options” for aid.
“I’m worried because of how high our debt is, the debt that we inherited, and so I want to look at what the different options that are available will be,” he said.
