The UK government is preparing to provide targeted energy bill support this winter for families receiving means-tested benefits, according to sources familiar with the plans. Officials have developed a system that would allow relief payments to be directed specifically at benefit claimants, aiming to address rising energy costs while avoiding the broad expense of universal schemes.

The move follows discussions earlier in the year when then-Chancellor Rachel Reeves emphasized that any new support would focus on “those who need it most,” reflecting lessons learned from 2022. During that period, a wide-ranging energy support package introduced by former Prime Minister Liz Truss in response to the surge in prices linked to Russia’s invasion of Ukraine ultimately cost taxpayers nearly £40 billion.

While officials are working on a more refined system to target households based on their precise income levels, this mechanism is not expected to be operational in time for the winter season. In the interim, Treasury officials have identified an alternative option that utilizes existing data to target support at households already receiving means-tested benefits such as Universal Credit.

The arrangement relies on a data-matching exercise led by Pensions Minister Torsten Bell, drawing on information held by the Department for Work and Pensions. A government source indicated that the necessary infrastructure to deliver a means-tested support scheme is already in place, allowing for swift implementation if the government chooses to proceed.

With the autumn Budget scheduled for October 28, Chancellor John Healey and Greater Manchester Mayor Andy Burnham face critical decisions about the scope and scale of energy support measures. The government is weighing whether to proceed with targeted intervention or explore alternative approaches as the cost-of-living pressures continue to mount for many households.

Officials stress the importance of balancing effective aid with fiscal responsibility, mindful of recent high expenditures and ongoing economic uncertainties resulting from global geopolitical tensions, including the impact of the conflict in Iran on energy markets.