Chancellor Rachel Reeves has said that any energy bills help provided by the government will be based on household income.
Donald Trump has sparked fears of a global energy crisis with his war in Iran. Wholesale gas and oil prices have soared after Iran effectively blocked the Strait of Hormuz in retaliation to Trump’s attacks.
Although home energy bills in the UK are set to drop between April and June thanks to Ofgem’s price cap, it is almost certain there will be a huge jump after this.
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The government is therefore coming under pressure to provide help to families to deal with rising bills, in a similar way to in the wake of Russia’s war in Ukraine.
However, whilst Liz Truss’s government decided to give universal support to every family in the UK, Reeves has said help will only be for those who need it most this time round.
Speaking to the BBC on Wednesday morning, the chancellor said: “I want to learn the lessons of the past because when Russia invaded Ukraine, the richest, the best-off third of households got more than a third of the support. That makes no sense at all.”
She hinted that support would not be provided until the autumn though, given that gas usage is typically low in the summer months.
The chancellor also did not confirm whether government support would go beyond people who receive benefits, simply reiterating: “We’re looking at ways in which we can support people based on their household income.”
Reeves also refused to commit to cutting fuel duty or VAT on petrol, with both Reform and the Tories saying they would remove VAT from household energy bills.