Rachel Reeves has indicated that future energy support will be targeted, suggesting middle-income households may miss out as the government responds to the fallout from the Iran conflict.
Speaking in the Commons, the Chancellor said contingency plans are being developed but ruled out a repeat of the broad-based support package introduced in 2022, arguing it was “unfunded” and poorly targeted.
Instead, Reeves signalled a more selective approach aimed at limiting borrowing and avoiding further pressure on inflation and interest rates.
The comments come as analysts warn that average energy bills could rise from around £1,750 to nearly £2,000 a year, driven by higher oil and gas prices.
Motorists are already feeling the impact, with petrol hitting 144.16p per litre, its highest level since July 2024, while diesel has climbed to 166.88p, a three-year high.
The shift in policy suggests the government is prioritising fiscal discipline, even as households face rising energy costs.
