Will Rachel Reeves intervene on energy bills?

The government is currently exploring various options for providing support with energy bills, trying to avoid the rushed approach seen in 2022. Instead of blanket payments to all households, there is a focus on targeting help to those who might suffer the most from rising prices, such as certain families, households, and small to medium-sized businesses.

Challenges include the difficulty in correlating wealth directly with energy costs, as factors like the size and insulation of homes vary widely. There is also debate about whether to reduce charges that fund infrastructure upgrades, though this could have long-term consequences and face resistance.

Officials acknowledge the heavy burden of prior bailouts, including the £70bn furlough scheme, and the need to balance economic support with fiscal responsibility. Future decisions on energy price caps won’t be made until at least the end of May by Ofgem.

Overall, the government seems to be preparing contingency plans rather than immediate interventions, with an emphasis on carefully targeted support rather than broad handouts

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