The Treasury is examining contingency measures to help British households with rising energy bills if the conflict in the Middle East worsens, according to reporting on comments by Chancellor John Healey to MPs.
The Financial Times reports that a Treasury group is meeting weekly to assess the economic consequences of the crisis and prepare for more severe scenarios. No additional emergency support package has been announced.
Treasury preparing for further disruption
The continuing conflict involving Iran has created uncertainty across international oil and gas markets. Higher wholesale gas prices can feed through to domestic electricity and heating bills, while rising oil prices can increase transport costs and inflation. According to the Financial Times, Chancellor John Healey told MPs that a Treasury group meets weekly to consider the economic effects and potential contingency measures. No additional emergency scheme has been approved.
Households already promised £100 payment
The October Budget announced a £100 Household Energy Payment for eligible households in England in Council Tax bands A to D, with payments due from January 2027. The Government estimates that up to 20 million households could qualify. It has also extended the removal of VAT from domestic electricity bills until July 2027, a measure it says saves an average household around £45 annually. These are existing commitments, not a newly announced contingency package.
Energy Independence Bill proposes wider powers
Government factsheets published on 4 November explain that the Energy Independence Bill would give ministers greater flexibility to establish energy bill support schemes during future price shocks. Possible assistance could include bill discounts, reduced charges, debt relief and direct payments. The Bill is proposed legislation; it does not itself establish a new emergency payment.
How further support might work
Energy UK has argued for better-targeted help for households most exposed to high bills, warning that universal assistance can be costly. Any new scheme would involve choices about eligibility, delivery and funding. The Treasury has not confirmed the amount, form or timing of any further intervention.
No new package confirmed
For now, households should distinguish between assistance already announced in the Budget and contingency measures under discussion. The Treasury’s preparations highlight the risks posed by further disruption to international energy markets, but they should not be interpreted as a promise of additional payments.
Sources: Financial Times; Government energy support factsheet; October Budget energy measures.