Keir Starmer announces £53,000,000 support for households hit by rising heating oil prices

Sir Keir Starmer has announced £53 million in support for ‘those households that are most exposed’ to rising heating oil prices.

The Iran War has thrown the oil market into turmoil, with Rachel Reeves announcing last week that she would make a package of support for those who ‘really need it’.

It’s thought to be aimed at people who rely on heating oil, which is not covered by the energy price cap.

Gas and electricity bills are covered by regulator Ofgem’s price cap, which is fixed until June, but if the conflict continues and Iran maintains its stranglehold on shipping in the Strait of Hormuz, then households could face dramatic hikes.

About 1.5 million households relying on heating oil already face soaring costs, with the price per litre doubling since the start of the crisis.

There is more time to draw up a plan for gas and electricity bills, because of the price cap.

Analysts at Cornwall Insight have forecast that household energy bills could rise by 10% from July, following sharp increases in wholesale gas prices.

Last week, oil prices surged over $100 per barrel as the conflict between the United States, Israel and Iran continued to rumble on.

Benchmark Brent crude – the international benchmark for oil – reached $107 a barrel, a price not seen since the summer of 2022.

Though China and Russia face risks of energy supply loss after the attacks in Iran, there are ‘greater risks’ for the UK and Europe than for America.

Dr Robert Johnson, Senior Research Fellow at Pembroke College in Oxford, previously told Metro that if the current situation worsens, it could end up somewhat similar to the 1973 oil shock in Britain.

In 1973, Arab members of OPEC halted shipments to the US and other nations that supported Israel during the Yom Kippur War.

‘That led to a three-day work week, lost jobs, and shut industries,’ Dr Johnson told Metro.

Working people are the ones hit hardest, with household bills set to rise sharply if the price of crude oil does not go down soon.

When the next quarterly energy price cap goes into effect in July, the increase in household bills could affect it greatly.

In addition to household prices increasing, transport and food costs could also go up.

Get in touch with our news team by emailing us at webnews@metro.co.uk.

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