Could Labour Step In To Help Energy Bills If They Start To Climb?

Energy security secretary Ed Miliband has refused to outline any clear details about potential support if bills start to rise.

But the senior minister told broadcasters that “if it’s necessary to intervene we will”, depending on how long Donald Trump’s war in Iran rumbles on for.

He insisted his Labour government would not let the energy bills reach £3,500 a year on average again, a shocking high seen during Liz Truss’s time in government.

The former Tory prime minister then spent taxpayers’ money to cap it at £2,500 a year to mitigate the effects of Russia’s invasion of Ukraine and a rise in global wholesale gas prices.

It remains unclear if the current Labour government would offer the same universal support were the Iran conflict to continue.

The war in the Middle East has already pushed the cost of oil to over $100 a barrel as the Iranian regime has effectively closed one of the world’s most important shipping lanes, the Strait of Hormuz.

Bills are expected to come down in the short-term because the energy price cap has already been set for April through to July.

However, regulator Ofgem may end up hiking them after that to reflect the turbulence around oil pricing.

Miliband told the BBC’s Laura Kuenssberg: “We took action in the Budget to cut bills because we know the cost of living crisis is the number one issue facing the British people.”

He continued: “We are preparing for all eventualities. It’s right we do that preparatory work, learning the lessons of the last crisis when Russia invaded Ukraine and – the best I can say, Laura – is if it’s necessary to intervene, we will.

“As the regulator said, we don’t know what will happen to the energy price cap in July.”

Miliband did meet with energy firms this week over how the government could help with bills.

The government is trying to discourage fuel retailers from hiking prices, without directly responding to markets.

Chancellor Rachel Reeves said earlier this week: “We are working on different ways to protect people, including more targeted support.”