RACHEL Reeves today confirmed she is “contingency planning” energy bill help — but only for “those that need it most”.
The Chancellor ruled out support for better-off households if gas and electricity costs surge because of war in Iran.
Ms Reeves vowed to “learn from the mistakes of the past” in a swipe at Liz Truss‘ Energy Price Guarantee.
The universal support package rolled out by the former PM in 2022 cost the Treasury an eye-watering £40bn — and is still being paid off today.
The Chancellor told the Commons: “I can confirm to the House that contingency planning is taking place for every eventuality, so that we can keep costs down for everyone and provide support for those that need it most, acting within our iron-clad fiscal rules to keep inflation and interest rates as low as possible.
She added: “This is not a war that we started, nor is it a war that we joined unlike the advice of the parties opposite.”
“But it is a war that will have an impact on our country. The challenges may be significant but I promise to do what is right and fair, being responsive in a changing world and responsible in the national interest.”
Households remain shielded from hikes until July this year under the Ofgem price cap.
It’s currently set at £1,758, but will fall to £1,641 from April 1 until the end of June.
But when the new threshold is calculated against the global energy market, steep rises are expected.
Energy giant EDF has predicted hikes of £300 a year for every home.
Alongside preparing a possible support package for low-income households, Ms Reeves announced she will slash red tape to speed up civil nuclear energy programmes.
The schemes will be linked to defence and are designed to make it easier for industry to secure planning permission for new power stations and other projects.
Responding to the announcement, Tory Shadow Chancellor Mel Stride demanded ministers cut welfare in response to the war.
Mr Stride hit out at Labour for abandoning plans to trim £5bn from the welfare bill after a Left-wing backbench rebellion.
The Shadow Chancellor said: “The reduction to energy bills this April is simply being taken from bills and dumped onto the shoulders of hard-pressed taxpayers. But it does not need to be this way.
“For is not the critical question this, where is the control of public spending? Where is the renewed resolve to grasp the welfare bill, to get people off benefits and into work?
“I will tell you, it is nowhere, because the Right Honourable lady is a captive of her own backbenchers and she has brought our economy one step from its knees.”
Sir Mel added: “We must now all brace ourselves for what is to come, not from a position of strength as the Right Honourable lady is so desperate to have us believe, but from a position of weakness of her own making.”
