Energy: Prices

The Government recognises the impact of the Iran conflict on households across the UK, not least as a result of pushing up on global energy prices.. A rapid de-escalation of the conflict remains the best way to protect people from rising bills.

To protect families from the most acute cost pressures, the Government has already taken action by stepping in at the start of the conflict to help heating oil customers with spiralling costs. Last month, the Government announced measures to reduce the impact of fuel costs on drivers – including an extension to the fuel duty cut until the end of the year – as well as a broader package to ease the cost of living over the summer holidays in particular.

Thanks to decisions the Government made at the Budget, the energy price cap fell by £117 on 1^st April, with savings locked in until the end of June. The Government has also expanded the £150 Warm Home Discount to 6 million lower income households and provided an additional £1.5 billion capital investment to tackle fuel poverty through the Warm Homes Plan.

The Government is closely monitoring developments in the Middle East and preparing for a range of scenarios. We stand ready to act if market conditions worsen significantly later this year, with cross-Government contingency work underway on the design of potential future targeted and temporary support.