Chancellor Rachel Reeves has said the economic challenges from the Iran war may be “significant” and contingency planning is under way for energy bill support “for those who need it most”.
The crisis in the Middle East has pushed up oil and gas prices, hitting motorists as they fill up at the pumps and potentially pushing up domestic energy bills later this year.
Ms Reeves said work was under way on targeted help for households when the current energy price cap expires at the end of June and global prices could push up domestic bills.
She told MPs: “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 iron-clad fiscal rules to keep inflation and interest rates as low as possible.
“This is not a war that we started, nor is it a war that we joined… 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.”
