Rachel Reeves has committed to providing additional support to families facing rising energy costs if fuel prices increase further amid ongoing geopolitical tensions. The Labour Party Chancellor made the announcement following Ofgem’s recent decision to raise the energy price cap by 13% starting in July.

Under the new cap, households on default tariffs can expect an average monthly increase of £18, amounting to an additional £221 annually. This adjustment raises the typical annual energy bill to approximately £1,862. The increase reflects a 24% rise in gas prices and a 5% rise in electricity costs.

Reeves linked the surge in energy prices to the escalating conflict in the Middle East, particularly the US-Israel confrontation with Iran, which has intensified volatility in oil and gas markets. She stated that while the war is not directly Britain’s, its economic repercussions are being felt by British families. Reeves emphasized her readiness to intervene with further measures should market conditions deteriorate further, saying that keeping costs manageable for households and businesses will be a priority in her decision-making.

She also noted that energy bills are currently lower than they would be without government intervention, citing a £150 reduction provided to consumers earlier this year as a mitigating factor.

Energy Secretary Ed Miliband described the price cap increase as “deeply unwelcome” and called for accelerated development of domestic renewable energy sources. Miliband underscored the importance of reducing reliance on volatile international energy markets by investing in home-grown green power to stabilize costs in the long term.