The British Government is set to introduce targeted assistance for low-income households struggling with rising energy costs, according to Chancellor Rachel Reeves.
Reeves told The Times that the Government is exploring options to assist those most vulnerable to soaring energy prices, particularly those relying on heating oil, but ruled out providing blanket assistance to all households, stating it would be unaffordable. The Labour Government is facing pressure from opponents to cap regulated domestic energy prices, scheduled for review in late May, and to scrap a planned gasoline tax hike in September.
Regarding the plan to assist households dependent on heating oil, Reeves said: “I found the money, and we have worked with MPs and others to find a solution for people not protected by the energy price cap. We are providing greater support to those who truly need it.” According to the Guardian, while the amounts involved have not yet been set out, it is understood that ministers could provide extra support to this fund if needed. In Scotland, Wales and Northern Ireland, devolved governments will receive money to deliver the help.
More than one million households in Britain use oil for heating, particularly in rural areas without gas grid access. Northern Ireland has the highest concentration of such households, with nearly half of all homes relying on this fuel alone.
According to The Times, Reeves will use her speech not only to address energy issues but also to advocate for closer alignment with the EU single market to boost growth. “Brexit has not been good for our country, for growth, or for prices in the shops,” she told the newspaper.
She added, “It has been nearly 10 years since we voted to leave. That ship has sailed, but there is much more we can do to improve our trade relations. Wherever our national interest requires alignment, we should certainly align.” According to the Guardian, in Northern Ireland, heating oil is the primary heating source for two-thirds of households. Reeves said she recognised the “unique challenges” faced by people reliant on heating oil, and has asked Spencer Livermore, the financial secretary to the Treasury, to discuss possible remedies with rural and Northern Irish MPs.
