Keir Starmer will on Monday announce a support package worth tens of millions of pounds for British households hammered by soaring heating oil costs, as the ongoing conflict in the Middle East continues to roil global energy markets. The prime minister is expected to deliver the announcement at a Downing Street press conference, where he will frame the intervention as a fundamental test of what his government stands for.
The support is primarily targeted at roughly 1.7 million households across the UK that rely on heating oil rather than mains gas, a group that falls outside Ofgem’s energy price cap and has therefore borne the brunt of the market turbulence. The issue is especially acute in Northern Ireland, where around 62.5 percent of homes rely on heating oil and where Starmer visited last week, repeatedly hearing from families about surging bills.
A Crisis at the Pump and in the Home
The trigger for the price shock is the effective closure of the Strait of Hormuz, the strategically vital waterway through which roughly a fifth of global oil supplies pass. Crude oil has climbed from $71 a barrel before the conflict began to above $100, briefly touching nearly $120 at its peak last week. For heating oil customers, the consequences have been severe and swift. The price per litre has rocketed from around 62p to as much as £1.73 in some areas, with one consumer telling the BBC they were quoted £315 for 500 litres of oil, a figure that more than doubled to £653 within days of the conflict’s outbreak.
Chancellor Rachel Reeves confirmed over the weekend that she had “found the money” to help, and according to The Guardian, ministers will channel support in England through councils using the new crisis and resilience fund, while devolved governments in Scotland, Wales, and Northern Ireland will receive separate allocations.
Suppliers Face Legal Warning as Regulator Moves In
Beyond the financial support, Starmer is expected to use Monday’s address to put heating oil companies on notice. The Competition and Markets Authority has already launched a review into the sector and written to suppliers requesting information about their contracts, after evidence emerged that pre-agreed deliveries were being cancelled or renegotiated at higher prices.
“I will not tolerate companies trying to exploit this crisis to make money from working people,” Starmer will say. “If the companies have broken the law, there will be legal action.”
Energy Secretary Ed Miliband has also indicated that the government is weighing further measures, including the possibility of reversing a planned fuel duty rise scheduled for September, the first increase in 16 years. According to Miliband, ministers cannot yet confirm whether that rise will go ahead, noting that “we don’t know how long this conflict is going to go on.” He added that low-cost solar panels suitable for balconies will be made available in the UK for the first time as part of an accelerated clean energy response.
Gas and electricity bills remain shielded by Ofgem’s price cap until June, but analysts at Cornwall Insight have already forecast a 10 percent rise from July, potentially pushing a typical dual-fuel household’s annual bill to £1,801.
