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theipaper.com

Monday March 16 2026

By Eleanor Langford

Political Reporter at The i Paper and author of Politics Unwrapped

Good evening and welcome to Monday’s Politics Unwrapped.

Thousands of British households will soon receive new support with energy costs.

But the war in the Middle East is pushing many people’s energy bills higher, and the Government is weighing up how far it is prepared to go to stave off another cost of living crisis.

Sir Keir Starmer announced a £53m package on Monday to help those most exposed to rising prices, telling a Downing Street press conference that helping people with the cost of living was his “first priority”. 

But he did not rule out going further if the conflict continues to drive prices up.

Let’s take a look at what’s been announced – and what could come next.

Here are our other key political stories from today:

• Labour mayors pressure Starmer to U-turn on EU customs union
• Opinion: Trump is so ‘tired of winning’ he’s come crawling back to Nato
• State pension set for another boost under triple lock
• Opinion: Starmer hopes his difference from Trump can save him

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The Prime Minister confirmed on Monday that he would be bringing in extra support for rural communities reliant on heating oil.

Unlike households on the gas grid, the 1.7 million using heating oil are not covered by the Ofgem price cap, which is set and enforced by the energy regulator. With no cap in place, suppliers can raise prices freely in response to wholesale market movements.

Last week, the Competition and Markets Authority said it received reports of “existing orders for heating oil being cancelled, and customers then being offered new quotes at significantly increased prices”.

Starmer said that this “kind of conduct is completely unacceptable” and it was “clear this market is under regulated”. 

He promised to “put that right to ensure customers get a better deal” and confirmed that there would be £53bn in support for “vulnerable heating oil customers” and “households that are most exposed” to the price increases.

Starmer has also threatened fines against suppliers cancelling orders or raising prices beyond their own increased costs. He said: “If the companies have broken the law there will be legal action.”

He said on Monday that the Government is “giving a legal direction to the energy companies to ensure that every penny of the savings that we delivered through last year’s budget is passed directly onto customers to keep bills as low as possible”.

The savings he is referring to are the energy price cap, which he said will save the average household £117, and the warm homes discount, which gave a £150 discount off energy bills to low-income households.

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Starmer said he was “not ruling anything out” when it came to further support for energy bills.

His comments echo those from Energy Secretary Ed Miliband, who previously told the BBC that the Government was “preparing for all eventualities” when it came to consequences of the Middle East conflict.

Miliband added that he was “not going to let” prices rise to the levels seen in 2022, when average household bills reached around £3,500 a year before the then-Conservative government intervened.

But he declined to be drawn on specifics, telling Sky News: “I’m not going to speculate on how help will be provided… if we make further interventions.”

The backdrop is significant. Between 28 February, when the conflict began, and 12 March, wholesale gas prices rose by 67 per cent and oil prices by 35 per cent, according to the Institute for Fiscal Studies. 

Energy consultancy Cornwall Insight is forecasting that the Ofgem price cap will rise from £1,641 a year to £1,826.70 for the average dual-fuel household from July – an increase of around 11 per cent based on current prices.

Several options for energy bill support are under internal discussion, though no formal commitment has been made to any of them.

1

Targeted support

The i Paper reported on Friday that the Government is considering a targeted scheme directed at those who will struggle most with higher energy costs. 

Chancellor Rachel Reeves has confirmed this is on the table, telling The Times on Saturday that the Government was “working on different ways to protect people, including more targeted support”.

The paper also reported that any such approach could focus on benefit claimants and pensioners, operating similarly to the warm home discount scheme – a payment of £150 made each winter to six million low-income households. 

2

Universal support

 The IFS has argued against repeating the support package introduced following the spike in energy prices after the outbreak of the Russia-Ukraine war in 2022. This included a direct grant for households and a subsidy on energy bills. 

The National Audit Office said the package cost taxpayers £44bn, and The i Paper reported that ministers are wary of repeating that approach, with Reeves this week signalling the Government is instead focused on more targeted options. 

3

Fuel duty

A 5p discount to fuel duty – the tax levied on petrol and diesel – which was first introduced in 2022 is due to be gradually reversed from September.

But The i Paper reported earlier this month that the Treasury is considering scrapping the September increase in response to the rising cost of fuel amid the broader crisis.

Miliband has also indicated the rise was under review, telling the BBC on Sunday: “We don’t know how long this conflict is going to go on and therefore, with five months to go until September, we will have to see where we are.”

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The £53m package announced on Monday is specifically for households which rely on heating oil – and therefore fall outside Ofgem’s price cap regime. 

The Government has confirmed that this cash will be distributed by local authorities from 1 April in areas with higher rates of oil heating. The support will target low-income households.

No further plans for broader support have yet been confirmed.

There are some existing schemes, however, that are intended to help low-income and vulnerable households with heating costs. These include the warm homes scheme, which offers a £150 discount for electricity bills between October and March for those on low incomes or receiving Pension Credit.

On top of this, those claiming certain benefits may also be eligible for the Cold Weather Payment – a £25 payment for every seven-day period of freezing weather between November and March.

But the Institute for Fiscal Studies has cautioned that the tight state of the public finances means any wider intervention to help with bills will need to be carefully designed. 

The think-tank warned that borrowing costs could rise further, “making it harder to fund an expensive support package”, and said any additional revenue would likely require raising existing tax rates or introducing new measures.

Do you think these measures are enough? 

Last week, I asked “Do you think digital IDs are a good idea?” 63 per cent said yes, and 37 per cent said no.

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