Government Considers Winter Energy Assistance Amid Extended Iran Conflict
Ministers are actively examining measures to provide support for families grappling with energy bills this winter, as Prime Minister Keir Starmer has cautioned that the war involving Iran could persist "for some time". The Prime Minister is set to chair a session of the Government's Cobra emergency committee today, focusing on strategies to shield British citizens from the financial impact of escalating costs driven by the Middle East conflict.
Starmer Warns Against False Hope of Quick Resolution
Prior to the Cobra meeting, Keir Starmer addressed the Commons Liaison Committee, urging his team to avoid the "false comfort" of anticipating a rapid conclusion to the hostilities. When questioned about the expected duration of the conflict, he responded, "It's hard to answer that question, if I'm honest about it. I think all our focus and energy has to be in the swift de-escalation, but we've got to plan on the basis that it could go on for some time."
He emphasized that this long-term perspective will guide the planning discussions scheduled for the afternoon session.
Energy Price Cap and Winter Support Plans
Currently, consumers are protected from sudden bill increases until the end of June by the energy price cap. However, the energy regulator Ofgem will determine the July cap in late May, based on wholesale prices from March, April, and May, which have surged since the conflict began.
Starmer highlighted that ministers are assessing the necessity for support into the winter months, when household energy usage typically rises. He stated, "We're looking at in the first instance what happens when the current price cap ends, which is the end of June. I think the one we're equally focused on is the one after that, because the June to September/October period is when only 7% of energy is used within households. It’s after that it gets very heavy."
He indicated that any potential assistance would likely be targeted towards poorer households, rather than implementing a universal bailout similar to the approach under Liz Truss. Pressed on this issue, he remarked, "I am acutely aware of how much it cost last time round. I'm acutely aware of the state of public finances. But we will look this afternoon at what the appropriate approach might be."
Addressing Profiteering and Supply Concerns
Starmer also addressed concerns about profiteering amid soaring oil and fuel prices, suggesting that the Competition and Markets Authority (CMA) watchdog might receive "further teeth" to combat such practices. He said, "On price gouging or profiteering, we absolutely need to bear down on it, so we are actively considering whether the CMA should have additional powers to deal specifically with that."
Regarding energy supplies, he sought to reassure the public, noting, "I can reassure the committee that we haven't any meaningful concerns about energy supplies." He added that bills will be reduced due to measures from last year's Budget and held steady until June's end.
Cobra Meeting and Government Response
The Cobra meeting is expected to include top ministers such as Chancellor Rachel Reeves, Foreign Secretary Yvette Cooper, and Energy Secretary Ed Miliband, along with Bank of England governor Andrew Bailey. Starmer explained that the gathering will review "a wider set of measures for the economy and specific sectors within the economy." Chancellor Reeves is anticipated to deliver a statement to Parliament tomorrow with further details on government support initiatives.
Starmer Responds to International Criticism
In a related development, Prime Minister Starmer dismissed jibes from former US President Donald Trump, who reposted a comedy sketch mocking him. Starmer asserted, "A lot of what is said or done is undoubtedly said and done to put pressure on me. I have no doubt about that. I understand exactly what is going on but I'm not going to be wavering on this. I'm the British Prime Minister and my job is to be absolutely focused on what's in the British national interest."
He reiterated the UK's stance, adding, "This is not our war and we are not getting dragged into this war."
