Full Breakdown
UK Government Prepares for Energy Crisis Amid US-Israel War
3/15/2026, 11:38:17 PM
Government Response to Rising Energy Costs
Energy Secretary Ed Miliband has indicated that the UK government is ready to intervene if energy costs rise significantly due to the ongoing US-Israel war in Iran. Speaking on the BBC's Sunday with Laura Kuenssberg programme, Miliband stated, "If it's necessary to intervene, we will," emphasizing the government's commitment to support citizens during this crisis. He noted that the government is "preparing for all eventualities," particularly as oil and gas prices have surged, raising concerns about the potential impact on the global economy and the cost of living.
Chancellor Rachel Reeves is expected to announce a support package aimed at households struggling with increased heating oil costs. Petrol prices have reached an 18-month high, prompting Prime Minister Sir Keir Starmer to warn fuel companies against "ripping off customers." Miliband acknowledged that the largest portion of petrol costs is attributed to fuel duty, which currently stands at 38%. He mentioned that the government would assess the situation regarding the freeze on fuel duty as the September deadline approaches.
Economic Context and Future Projections
While most households with gas and electric heating will see their energy prices decrease over the next three months due to a government charge adjustment, the effects of the war may lead to increased bills in the autumn. Miliband recognized that the cost of living was already a pressing issue for many before the Gulf crisis, stating, "cost of living is people's number one priority." He reiterated that any intervention would depend on the conflict's impact by July.
Miliband dismissed calls from the Conservative Party for new oil and gas licenses in the North Sea, asserting that gas prices are determined by international markets rather than domestic production. He emphasized the need for "home-grown, clean power that we control" as a long-term energy policy goal.
Criticism and Alternative Proposals
Claire Coutinho, shadow energy security secretary, criticized the government for not implementing immediate measures to reduce energy costs, advocating for a "cheap power plan" instead of taxpayer-funded solutions. She suggested that previous renewable energy policies should be reconsidered in light of current challenges.
Liberal Democrat leader Sir Ed Davey highlighted the broader implications of the conflict, stating that the rise in oil prices and energy bills is a direct consequence of the war. He called for de-escalation of the conflict as a means to alleviate pressure on families in the UK.
Conflicting Reports & Gaps
There are differing opinions on the effectiveness of the government's current strategies. While some officials believe that the measures in place will mitigate the impact of rising energy costs, critics argue that more immediate and direct interventions are necessary to support struggling households.
Verbatim Quotes
- “if it's necessary to intervene, we will” — Ed Miliband, Energy Secretary
- “cost of living is people's number one priority” — Ed Miliband, Energy Secretary
- “We are a price taker not a price maker,” — Ed Miliband, Energy Secretary
- “first port of call should be to reduce costs” — Claire Coutinho, Shadow Energy Security Secretary
