Prime Minister announces £53 million to support vulnerable households with heating oil costs

The Prime Minister Sir Keir Starmer has announced at a press conference this morning that the government will provide £53 million in support funding for vulnerable households that are struggling with the steep rise in heating oil costs, as a result of the ongoing conflict in the Middle East.

Starmer used his press conference to discuss the government’s response to the increase in oil and energy prices caused by the crisis as the US and Israel’s war with Iran continues into its third week, alongside providing an update to the nation of Britain’s activity within the region.

The war has seen the closing of the Strait of Hormuz, through which 20% of global oil supplies are transported. Since its closure, the price of crude oil has risen dramatically to over $100 a barrel, which is a significant increase from pre-war prices. The Prime Minister acknowledged the impact this was having on prices back home, saying “ultimately we have to re-open the Strait of Hormuz to ensure stability in the market.” He said that Britain would be working with European partners and allies to develop a comprehensive plan that could see the crucial waterway reopened, but also accepted this would not be a straight forward task.

Starmer outlined Britain’s three ‘objectives’ with relation to the war under his leadership, maintaining that the British national interest remains the government’s top priority. The first objective, Starmer said, was to “protect our people in the region”.

READ MORE: Think tanks and MPs call for targeted response as Iran war impacts cost of living

The Prime Minister continued that, while ensuring the defence of Britain and its allies, his second objective was to be clear that “We will not be drawn into the wider war”, before finishing with his third objective of working towards a “swift resolution” acknowledging that the longer the war continues, the more problematic for the cost of living.

The Prime Minister was keen to ensure public understanding of the government’s decisions over the last eighteen months had provided the UK economy with more of an ability to deal with the developing issues than it would have otherwise had.

“Because we have brought stability back to our public finances, we are in a better position today than we were at the start of the Ukraine war.”

Starmer turned from his assessment of the health of the UK public finances to address the five steps the government would announce to help tackle the cost of living at this time.

The government has capped energy bills until the end of June 2026, saving the average household £117. The Prime Minister said that this saving was in addition to the £150 saved through the Warm Homes Plan, that would support the most vulnerable in society. “No matter what happens now in energy markets, in three weeks time your energy bills will but cut and then capped for the next three months,” Starmer told the press conference. The government has also given a legal direction to the energy companies to ensure all savings made in the budget last year would be passed directly to customers.

The government has also extended the fuel duty cut until September 2026, as well as introducing ‘the cheap fuel finder’, forcing petrol stations to publish their live prices and helping drivers with the ability to choose the lowest price.

The Prime Minister also referenced his campaigning for a windfall tax on oil and gas companies in 2022 when prices spiked following the beginning of the war in Ukraine, indicating that this has been raised in government to try and prevent companies profiteering from price spikes.

The government will provide immediate support for the households most exposed to heating oil price spikes with the £53 million in support for vulnerable houses and targeted support for rural areas that are may be more likely to rely on this method of heating.

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The government is also going to continue pursuing greater energy independence, to try and stop the country from facing the wild fluctuations on oil and gas prices dictated by the global market that can occur as a result of events such as the ongoing conflict in the middle east. The Prime Minister referred to this as “a vital cause” saying:

“Until we get ourselves off the rollercoaster of international oil and gas markets and onto clean homegrown British energy, tyrants like Putin and the Ayatollahs will be free to attack our energy security,” announcing there there is no intention for the government to slow down as they continue to look towards renewables and nuclear alternatives to UK energy sources.

The fifth and final step, Starmer reiterated, is a commitment to bringing the war to a swift end.

“It’s moments like this that tell you what a government is about. My answer is clear. Whatever the challenges that lie ahead, this government will always support working people. That is my first instinct. My first priority. To help you with the cost of living throughout this crisis.” the Prime Minister stated.

In his opening speech, the Prime Minister has also announced that 92,000 British nationals returned to UK on commercial and government chartered flights to bring back from the region.

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LabourList contacted Jenny Riddell-Carpenter, Labour MP for Suffolk Coastal and convener of Labour Rural research group for comment responding to the government’s decision to provide support for heating oil costs. She said:

“Providing targeted, emergency support for those most affected by the rising cost of domestic heating oil is very welcomed.

“Urgency now must turn to ensure that we can get the money allocated to Councils, and out of the door as quickly as possible, to help those households who are struggling the most, and without means to afford the doubling of domestic heating oil costs, which has happened in a matter of days.

“we must not forget the Conservative government took 200 days to get help to those who needed it, after the domestic heating oil was in crisis in 2022 following the invasion of Ukraine. This quick action is exactly the type of response that is needed in rural England, where too often those in poverty are left unsupported and forgotten.”

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