Mar 16, 2026
UK is contemplating focused aid for households as energy prices rise sharply.
The British government aims to provide specific support for low-income households affected by rising energy costs from the Middle East conflict, according to finance minister Rachel Reeves in an interview published on Saturday.
Reeves explained to the Times that the government is exploring ways to assist those most vulnerable to significant increases in energy prices, particularly those dependent on heating oil, but dismissed the idea of universal assistance, citing affordability concerns.
As the Labour government trails the populist Reform UK party in the polls, it faces pressure to limit regulated household energy tariffs—scheduled for review in late May—and to cancel a planned increase in fuel duty set for September. "I have found the money and we’ve worked through with MPs and others to respond for people not protected by the energy price cap. We’re focusing on providing more support where it’s truly needed," she said regarding the plan for heating oil-dependent households.
Over a million households in Britain rely on heating oil, especially in rural areas where gas connections aren't available, with nearly half of Northern Ireland's households using it exclusively.
Heating oil users are particularly vulnerable to price fluctuations since it falls outside the government's energy price caps. Reeves mentioned to the Times that the Treasury is assessing different scenarios based on the duration of the Iran conflict, including "more targeted options" for assistance.
"I'm concerned about our high debt, which we inherited, and I want to explore the various options available," she stated.
Britain's Competition and Markets Authority wrote to Reeves on Saturday, indicating it was urgently contacting several heating oil suppliers to evaluate any potential concerns with their practices. The letter from CMA chief executive Sarah Cardell noted that while no businesses are presumed to have violated consumer protection laws, enforcement action will be taken if any violations are found.
The CMA is also keeping an eye on vehicle fuel prices to check for possible exploitation of the current situation.
According to the Times, Reeves plans to address not only energy issues in her upcoming speech on Tuesday but also advocate for closer alignment with the European Union single market to enhance growth. "Brexit has not been beneficial for our country, growth, or shop prices," she remarked. "It’s been almost 10 years since we voted Leave. That ship has sailed, but there’s much we can do to strengthen our trading relations. Where alignment serves our national interest, we should definitely pursue it."
Reeves explained to the Times that the government is exploring ways to assist those most vulnerable to significant increases in energy prices, particularly those dependent on heating oil, but dismissed the idea of universal assistance, citing affordability concerns.
As the Labour government trails the populist Reform UK party in the polls, it faces pressure to limit regulated household energy tariffs—scheduled for review in late May—and to cancel a planned increase in fuel duty set for September. "I have found the money and we’ve worked through with MPs and others to respond for people not protected by the energy price cap. We’re focusing on providing more support where it’s truly needed," she said regarding the plan for heating oil-dependent households.
Over a million households in Britain rely on heating oil, especially in rural areas where gas connections aren't available, with nearly half of Northern Ireland's households using it exclusively.
Heating oil users are particularly vulnerable to price fluctuations since it falls outside the government's energy price caps. Reeves mentioned to the Times that the Treasury is assessing different scenarios based on the duration of the Iran conflict, including "more targeted options" for assistance.
"I'm concerned about our high debt, which we inherited, and I want to explore the various options available," she stated.
Britain's Competition and Markets Authority wrote to Reeves on Saturday, indicating it was urgently contacting several heating oil suppliers to evaluate any potential concerns with their practices. The letter from CMA chief executive Sarah Cardell noted that while no businesses are presumed to have violated consumer protection laws, enforcement action will be taken if any violations are found.
The CMA is also keeping an eye on vehicle fuel prices to check for possible exploitation of the current situation.
According to the Times, Reeves plans to address not only energy issues in her upcoming speech on Tuesday but also advocate for closer alignment with the European Union single market to enhance growth. "Brexit has not been beneficial for our country, growth, or shop prices," she remarked. "It’s been almost 10 years since we voted Leave. That ship has sailed, but there’s much we can do to strengthen our trading relations. Where alignment serves our national interest, we should definitely pursue it."