British Chancellor of the Exchequer Rachel Reeves confirmed in an interview published Saturday that the government is seeking to provide "targeted" support to low-income households to mitigate the impact of the sharp rise in energy costs driven by conflict in the Middle East.
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." 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 on Tuesday 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."