DWP benefit claimants could receive targeted energy bill support as the UK Government faces mounting pressure to intervene following oil price spikes amid the Iran conflict

The Government has released a statement regarding energy bills as the UK grapples with mounting pressures stemming from the conflict in Iran. Household expenses across the country are rising following a surge in oil and gas prices driven by the continuing hostilities in the Middle East.

Ministers are now facing calls to step in. Several nations have already introduced measures to ease the burden on households struggling with soaring bills as a result of the Iran conflict, with Brent crude having risen sharply from $72.48 per barrel before the war to around $95 at present.

Germany, Italy, France, South Korea and Japan are amongst the countries whose governments have acted to curb escalating costs. Labour is now facing increasing pressure – with questions even coming from its own backbench MPs on the matter. Ruth Jones, Labour MP for Newport West and Islwyn, raised the issue in Parliament this week while questioning the Department for Energy Security and Net Zero about support for DWP (Department for Work and Pensions) claimants.

She asked: “What assessment has [been] made of the potential merits of the receipt of benefits designed to support disabled people with the additional costs of living with disability, such as a) PIP, b) DLA and c) AA [attendance allowance], being within targeting criteria for energy cost support initiatives?”

The Government has stated it is exploring ways to provide ‘better targeted help’ to households struggling with their energy costs, reports the Mirror, reports the Liverpool Echo. Martin McCluskey, Parliamentary Under Secretary of State (Department for Energy Security and Net Zero), said: “The Government recognises that families and businesses across the country will see the recent global events and once again be concerned about the impact on their energy bills.

“The Government continues to monitor the situation closely. Contingency planning is taking place for every eventuality, so that we can keep costs down for everyone and provide support for those who need it most. In addition, DESNZ is working closely with other Government Departments on the National Data Library (NDL) energy bill support ‘Kickstarter’ project to test how public sector data can be better joined up to improve access to Government programmes.

“The Kickstarter project will pave the way for better targeted help, ensuring those who are struggling to pay their bills get the support they need.”

What has the Government said so far on fuel prices?

On March 24, Chancellor Rachel Reeves set out measures the Government was introducing in reaction to increasing fuel prices. She told the Commons: “Today, I can announce that we are going further to make sure that the Competition and Markets Authority (CMA) have the powers that they need, that were denied to them by the previous government, to detect and to crack down on price gouging, bringing in a new anti-profiteering framework and considering time-limited, targeted powers for the CMA and other regulators.”

She added that the CMA is already working with the Government to monitor the price of everyday household staples, tracking both cost rises and possible disruption. She also cautioned that the economic consequences arising from the Iran war could be “significant”.

At the time, she confirmed that contingency planning was already in progress concerning energy bill support “for those who need it most”. She told the Commons: “The previous government pushed up borrowing, interest rates, inflation and mortgage costs with an unfunded, untargeted package of support under Liz Truss. That gave the support to the most wealthiest of households.

She added: “That left us with high levels of national debt, a cheque written then for a bill that is still being paid today. 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 who need it most, acting within our ironclad fiscal rules to keep inflation and interest rates as low as possible.”

The Government has also gained from Ofgem’s energy price cap. Domestic energy bills generally fell by £117 annually in April and are not scheduled for review until July. Earlier this month, Sir Keir Starmer announced that “vulnerable” UK households severely affected by a substantial increase in heating oil prices would be given help.

A £53m support package was revealed to deliver “targeted” assistance to low-income households in rural communities. Moreover, the government has committed to tackling ‘price gouging’ in an effort to stop firms from taking advantage of the current Middle East crisis.