Prime Minister Keir Starmer has unveiled a five-point support plan aimed at easing the cost-of-living squeeze as heating oil prices soar.
He stressed that the government is balancing multiple pressures:
- Rising energy costs for households
- Global inflationary pressures
- Calls for more defense spending amid international instability
He said: “We will act when necessary, but for now we’re giving targeted help to keep bills as low as possible.”
Here’s what families can expect:
1. Energy Bills Cut and Capped
“For the most vulnerable in society… in three weeks’ time, your energy bills will be cut and then capped for the next three months,” Starmer said. This includes a legal direction to ensure energy companies pass last year’s budget savings directly to customers.
Rachel Reeves announced all households would get £150 off their energy bills in 2026. Confusingly, this is separate from the Warm Home Discount, and eligible bill-payers will get both.
The Warm Home Discount has been expanded, meaning 6 million households will receive £150 off their energy bills. This means 2.7 million extra households will receive £150 off their energy bills, bringing up the number to 6 million in total – including 900,000 families with children and a total of 1.8 million households in fuel poverty.
2. Energy Price Cap Protection
The government will hold off revising the energy price cap for now. Starmer said bills won’t go up over the coming months and may even come down slightly. The next review is scheduled for summer, when adjustments will be considered.
3. £53 Million for households using heating oil
To target those feeling the pinch, especially in areas reliant on heating oil like Northern Ireland, the government is rolling out £53 million in emergency support.
Funding will be distributed through devolved governments and local authorities, ensuring help reaches the most vulnerable families.
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Local councils in England, as well as Scottish, Welsh, and Northern Irish governments, will be able to send direct payments to households struggling with immediate spikes in energy costs. This is designed to plug gaps where the energy price cap doesn’t cover heating oil.
4. Petrol and diesel duty cuts continue until September
The Chancellor has confirmed the long-running freeze on fuel duty is finally coming to an end – but not all at once.
The current 5p-per-litre cut, originally due to end in April 2026, has been extended by another five months and will stay in place until 1 September 2026.
5. Government ready to do more
Starmer acknowledged the broader risks if the Middle East crisis drags on. “If the impact of this oil shortage is significant and long-lasting, the government will step in with further support,” he said.
While £53 million is the immediate package, millions more could be helped if the crisis escalates.
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