Finance minister Rachel Reeves says targeted support for poorer households is being considered as energy costs soar, while ruling out universal help.
LONDON: The British government is considering targeted support for poorer households to offset surging energy costs. Finance minister Rachel Reeves said the focus would be on those vulnerable to sharp price rises, particularly users of heating oil.
Reeves ruled out universal assistance for all households, stating it would be unaffordable. “I have found the money and we’ve worked through with MPs and others a response for people who are not protected by the energy price cap,” she told the Times newspaper.
The Labour government faces pressure to cap regulated household energy tariffs, due for review in late May. Opponents are also calling for a planned rise in vehicle fuel duty in September to be scrapped.
More than a million UK households, especially in rural areas, use heating oil. The fuel is not covered by the government’s energy price cap, leaving consumers exposed to global oil price swings.
Reeves said the Treasury was modelling different support scenarios based on the duration of the Middle East conflict. “I am concerned given how high our debt is, the debt that we inherited, and so I want to look at what the different options available would be,” she added.
In her Tuesday speech, Reeves will also call for closer alignment with the European Union single market to boost growth. “Brexit has not been good for our country, for growth, for prices in the shop,” she told the paper.
She argued that while the decision to leave the EU was made, improving trade relations remained possible. “Where that requires alignment in our national interest, we should absolutely align,” Reeves said.
