No immediate changes to ease cost of living impact of Iran war, says Pat McFadden
The government announced that around £50 million will be made available to help low-income families who heat their homes with oil.
There will be no immediate changes to ease the cost of living impact from the Iran war, beyond offering £53m for heating oil homes, the Work and Pensions Secretary has told LBC.
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Pat McFadden said "we are not at the stage yet of having to put more energy price support" beyond what was announced last week by the Prime Minister.
The Prime Minister and Chancellor Rachel Reeves announced that around £50 million will be made available to help low-income families who heat their homes with oil.
Following the US-Israeli strikes, volatility in the Middle East – compounded by Iran warning vessels not to pass through the Strait of Hormuz – has led to the price of heating oil at least doubling in the past week alone.
The price of kerosene – the fuel used for heating oil – has been especially affected by the conflict and has risen faster than other fuels such as petrol and gas, largely because distributors hold minimal stocks, leaving them exposed to sudden market volatility.
Unlike gas and electricity customers, Ofgem’s price cap does not cover those who heat their homes with oil, meaning they are exposed to more immediate cost spikes.
Read more: Iran claims to have fired missiles at US aircraft carrier
For rural communities, recent rises in heating oil prices are a real and urgent problem.
— HM Treasury (@hmtreasury) March 16, 2026
That’s why we’re providing over £50m to help those who need it most - including funding for the @niexecutive to deliver support where this hits hardest. pic.twitter.com/2EVMpa8lRx
Mr McFadden echoed the Chancellor's comments, saying that "this is a very uncertain situation".
He added: "We want to lead and support the country through it. The important thing for people to know is that the energy price cap will protect them for the next three or four months."
"In fact, bills will come down from April because of the decisions that the Labour government has taken," he said.
"But obviously, we will watch the situation in the Middle East closely, and we want to steer and lead the country through what is a difficult situation, which will affect all countries, whether or not they are directly involved in the hostilities that are taking place."
Ms Reeves has said work is underway 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.
Sir Keir Starmer has been accused of bailing out those on benefits by Conservative leader Kemi Badenoch, as she claimed he is at fault for rising energy costs.
The Prime Minister hit back, saying Mrs Badenoch continuously “gets the big calls absolutely wrong” and the spike in costs is a result of the ongoing conflict in the Middle East.