Chancellor Rachel Reeves is set to offer a package of support to households struggling with higher heating oil costs, following the global impact of the US-Israel war in Iran.
In an interview with the Times, Reeves stated that she has found the money to help and the Treasury is looking at different options to assist those most vulnerable to soaring energy bills.
The increase in global oil prices has caused a spike in heating oil costs, commonly used in rural areas not connected to the main gas grid, which is not covered by the regulator Ofgem's energy price cap.
Government Response
A government spokesperson said: "We know that people are concerned about the potential impact of global conflicts on the cost of living."
They added: "While it is too soon to know the full impact of this crisis, as the chancellor said, she will take the necessary decisions to help families with the cost of living and protect the public finances."
Heating Oil Crisis
About 1.7 million households in England and Wales rely on kerosene for heating and hot water, but prices are not capped and are subject to volatility. Almost two-thirds of homes (62.5%) in Northern Ireland rely on heating oil.
Households using heating oil have seen their bills double since the start of the US and Israel's assault in Iran, with some orders cancelled and others unable to get heating oil at all.
Future Plans
Reeves told the Times that the government has worked through a response for people not protected by the energy price cap. The chancellor also stated that ahead of the next price cap in July, the government is working through different scenarios and will look at more targeted options.
Household energy bills are set to fall by 7% in April, Ofgem previously announced, following a shake-up in charges by the government. However, prices are still about a third higher than before the war in Ukraine.
