The chancellor has promised people they will get help with their energy bills, which are being driven up by the war with Iran, but the support has not yet arrived, and it will not be for everyone.
Household energy bills fell on Wednesday by 7% due to the recent price hike, but are expected to rise by 18% from July.
Rachel Reeves he told ITV News that he is using a three-month delay between price hikes, when warmer weather means lower energy consumption, to assess what support can be offered.
“We use this time to deal with different emergencies and different options, for organized and planned support.
“What we have done so far is to reduce costs for everyone’s orders, trains, and especially with energy bills,” he said. “But we’re looking at what else might be needed.”
His words come before the press conference in Prime Minister Sir Keir Starmerwhere he laid out plans to address the ongoing conflict in the Middle East and government support for families.
Since the start of the war in Iran, oil prices have risen due to Tehran’s ban on tankers passing through the country. Strait of Hormuz.
Households with a 55-litre diesel car will pay more than £100 at the pump for the first time since December 2022.
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But the Chancellor said he was still hesitant to decide whether to scrap the proposed 1p increase in tax, which is due for September.
He said: “Now it is difficult to know where we will be in a week, let alone in six months.
“So we’re working, different options right now and planning different events.”
He added: “What we don’t want to do is have a kind of blanket support in a time of high prices, because that means the same people will have to pay for that support through higher taxes, or less money for services like the NHS in the future.
“That’s why we’re currently working on contingency planning and structured, targeted support.”
He said the best way to reduce debt is to de-escalate tensions in Iran and open the Strait of Hormuz, which is the most important route for transporting oil from the Persian Gulf.
In normal times, the Strait would see about 20% of the world’s oil supply flow through it, but that has been reduced to almost zero since the war began.
However, Reeves stressed that the UK has sufficient fuel supplies.
“We don’t have a problem with supply. There is plenty of supply. The impact now is the price effect.
“We get very little oil and gas from the Middle East, but we are all affected when prices go up.”
When asked if people should limit their energy use, he said: “People should not have those worries. They should continue to work as usual. They should also have confidence that the government is planning emergencies for different situations.”
He pointed to the process of preventing electricity bills from unfairly profiting from problems by raising prices, and said that people looking for cheap fuel can use government services to compare prices at the pump.
Figures from the RAC on Tuesday showed the average price of diesel on UK front lines was 182.8p per litre, up 40p since the start of the war, bringing the cost of filling up a 55-litre family car to £100.52.
The average price of petrol is 152.8p a litre, an increase of 20p since the start of the war.
Before his press conference, the prime minister said: “In an unstable and unstable world, it is my Government’s duty to protect the British people at home and abroad.
“I know the public is worried about the conflict in Iran and what it means for them and their families.
“I want to assure them that they have the government on their side, working with partners to lower standards and lower the cost of living.
“Today, millions of people up and down the country will see their energy bills fall by £117, wages rise for the lowest paid, and more support will be available for people who need it most – thanks to the decisions this Government has taken.
“But we have to go further to reduce costs, and that means pushing for the de-escalation in the Middle East and the reopening of the Strait of Hormuz. That is the best way we can reduce the cost of living for families and that is my point.”
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