Prime Minister Keir Starmer has confirmed a new £53million cost of living support package for British households impacted by the US-Iran war.
Addressing the nation, the Prime Minister announced a wave of financial assistance for families, especially those reliant on heating oil to warm their homes, amid fears of an energy bill spike.
Over the past two weeks, oil prices have surged in response to the US and Israel’s decision to launch a military strike on Iran and the regime’s proxies in the Middle East.
In response, the Islamic Republic has closed off the Strait of Hormuz, the shipping route that transports around 20 per cent of the world’s oil, and key energy infrastructure in the region.
The Prime Minister has unveiled new cost of living support
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GETTY / KEIR STARMER
During his speech, the Prime Minister unveiled the following changes to energy bill policy:
- Energy bills will be capped until the end of June, saving the average household £117 a year, thanks to Ofgem reducing the price cap for households on average usage
- Fuel duty cap will be extended until September, with the Labour Government floating a “cheap fuel finder” for drivers to find the lowest price of oil
- Some £53million in immediate cost of living support will be awarded to heating oil customers, who are considered the most exposed to changes in the market.
- Continuing with the UK’s energy security independence scheme to ensure the UK is “not subject to the fluctuations of prices” caused by geopolitical events
- Work with other countries to reopen the Strait of Hormuz and de-escalate tensions in the Middle East.
Oil prices are on the rise | GETTY
The Iran war has caused major disrupton across the globe | GETTY
During his speech, Mr Starmer brought up claims that heating oil suppliers have cancelled orders from customers and raised prices in response to the US-Iran war.
Last week, Chancellor Rachel Reeves and Energy Secretary Ed Miliband met with oil giant bosses and forecourt operators to dissuade them from profiteering from the conflict.
In his press conference, the Prime Minister said: I will not tolerate companies trying to exploit this crisis to make money from working people… if the companies have broken the law, there will be legal action.”
The Labour leader cited that reopening the Strait of Hormuz is essential to calming the markets and keeping energy bills down long-term.
Britons are saddled with billions in energy debt | GETTY
He added: “That’s one of the pressing issues of the day, it’s something I discussed with President Trump yesterday on the phone. There have been discussions going on in relation to a viable plan.
“We want to make sure that that involves as many partners as possible, that’s been our stated objective here, particularly talking to European partners, inevitably talking to Gulf partners, and the US.
“We need a credible, viable plan because this is to say the least, not easy and is not straightforward, and therefore we have to make forward we have to make sure we’ve got that credible plan in place.”