Rachel Reeves is taking a gamble as Gulf conflict impacts energy prices

We understand targeted help for the poorest households that rely on heating oil is coming, with Chancellor Rachel Reeves due to make an announcement as soon as Monday.

It follows calls from rural Labour MPs, who have warned constituents living in fuel shortages are unable to heat their homes, have their supplies restored, or afford the rising price.

“It may be a small proportion for the country overall, but where there are large groups of people using heating oil, it’s a big issue,” Labour MP Terry Jeremy told Sky News.

The MP for South West Norfolk said he had spent weeks warning ministers: “I have had people literally turn off their heating because their tank has gone empty.

“If we’re not careful and if we don’t take action, the situation could be a public health issue. We have elderly, vulnerable people who are literally not able to turn on their heating and not able to cook their food in some cases. The government has no choice; we have to take action.”

Beyond help for oil customers, Rachel Reeves Just blocking anything else right now.

Along with the authorities, they hope that times will become easier conflict in the Gulf. And, along with that, there will be an impact on cost here. It’s a defiant stance and one he hopes will pay off.

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Opposition parties are continuously putting pressure on what will happen after the current situation: the price cap on energy bills ends in June and fuel duty increases in September. Politically, this is a terrible time for the Labour Party.

Ministers felt their ‘£150 discount on energy bills’ was a concrete example of efforts to reduce the cost of living and put more money in people’s pockets. Normal gas and electricity bills will see reductions from April as a result of changes announced by the Chancellor in last November’s Budget.

By scrapping some green levies and shifting others to general taxation, Labour says the changes will reduce the typical bill by around £150. Ofgem says the reduction would be as much as £117 Because the cost of running and maintaining the network has increased.

But Reeves is nonetheless committed to fiscal discipline.

We are determined not to resort to an extremely expensive package of sovereign support, as we saw in the wake of Russia’s invasion of Ukraine in 2022. In an interview with The Times, she does not criticise a package but makes it clear that it is a package we are still paying for.

In the same interview, he highlighted that the government now has the benefit of better data. Therefore, if needed in the future, any further financial assistance can be means-tested.

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This is a significant ‘if’, but it could be very costly, even with more targeted support.

Labour will have to spend the coming weeks considering its options.

Not only the financial cost, but also the political one. For a government that has made economic growth and high living standards its priorities, it faces an unforgiving electorate if there is no sign of improvement in the next election – even if it is due to events beyond its control.