--- title: "UK government rules out immediate energy bill support before October price rise" publisher: "Stockmark.IT" author: "Stockmark.IT Website" published: "2026-08-27T06:40:01+00:00" modified: "2026-08-27T06:40:01+00:00" date: 2026-08-27 canonical: "https://stockmark.it/no-more-uk-energy-bills-support-likely-before-price-cap-rise/" category: "Energy" categories: ["Energy", "UK Economy", "UK Government"] image: "https://i0.wp.com/stockmark.it/wp-content/uploads/2026/08/uk-government-rules-out-immediate-energy-bill-support-before.png?fit=1536%2C1024&quality=80&ssl=1" format: "news" language: "en-GB" --- # UK government rules out immediate energy bill support before October price rise **Published:** August 27, 2026 **Author:** Stockmark.IT Website **Categories:** Energy, UK Economy, UK Government **Featured image:** ![UK government rules out immediate energy bill support before October price rise](https://i0.wp.com/stockmark.it/wp-content/uploads/2026/08/uk-government-rules-out-immediate-energy-bill-support-before.png?fit=1536%2C1024&quality=80&ssl=1) --- Households in the United Kingdom are unlikely to receive additional financial assistance for energy costs before the price cap increases in October, according to government sources. While officials have acknowledged the pressure on family budgets, they have stopped short of pledging further immediate intervention. The gas and electricity price cap is set to rise by four per cent from October, a move that follows the government’s recent decision to remove value added tax from domestic electricity bills. This VAT cut, announced in the first week of Andy Burnham’s tenure as prime minister, is designed to save the average household approximately £45 per year. The current price increases are attributed to global energy market fluctuations, specifically those caused by the conflict involving the United States and Iran and the subsequent closure of the strait of Hormuz. These geopolitical factors led to a 13 per cent rise in prices at the start of July. Prime Minister Burnham stated on Wednesday that rising energy bills are difficult for people and that he recognises the burden. However, he did not promise intervention beyond the existing VAT reduction, noting that the government would continue to examine how to lower energy prices in the long term. Miatta Fahnbulleh, the energy secretary, echoed this sentiment, explaining that bills are being driven up by the Iran war and that the government would keep looking at ways to protect families from unaffordable costs. Chancellor John Healey indicated that the government would reassess the need for further support towards the end of the year. He told the Sun newspaper that no government could stop the squeeze felt by families and businesses due to a global shock of this magnitude, which is being felt worldwide. He emphasised that the government would keep close watch as it moves towards the new year and remains focused on providing families with breathing space regarding the cost of living. Healey added that the administration seeks practical action to put the country on a more resilient footing to better weather future shocks. The Resolution Foundation, a thinktank with close ties to the government, has suggested that targeted support should be designed, costed, and ready to activate if needed from January. Forecasts indicate that bills could rise by up to nine per cent at that time. The thinktank proposes that such support should extend beyond those on benefits to include individuals earning less than £24,000 a year, which would reach approximately 40 per cent of households. Ruth Curtice, the chief executive of the Resolution Foundation, noted that while the October rise has been tempered by the VAT cut, wholesale gas prices have hit new highs following the Iran conflict. She argued that a better mechanism for targeted support is needed given the acute pressure on both family and government budgets. The Trades Union Congress has renewed its call for a windfall tax on bank profits to fund a cut to energy bills. Paul Nowak, the general secretary, stated that the government should be looking at ways to fund more support for households this winter. He argued that banks are raking in profits while many people across the country struggle to get by, and that they can well afford to pay more tax. Previously, Rachel Reeves, the former chancellor, had indicated in March that she wanted to ensure a targeted approach was in place for the autumn before Burnham became prime minister. Government sources suggest that any further support would be costed in the budget and that officials will wait to see how the conflict in the Gulf develops over the coming months. This includes monitoring whether the strait of Hormuz can be reopened. Meanwhile, Prime Minister Burnham has indicated he is open to allowing more drilling sites in the North Sea if a quasi-judicial process approves the exploration of the Jackdaw and Rosebank fossil fuel sites. This stance is likely to cause a backlash from some Labour MPs, although Burnham pointed to the pragmatic approach taken by climate campaigner Dale Vince, who recently backed both schemes. Ed Miliband, the former energy secretary and now foreign secretary, previously described the Rosebank proposal as climate vandalism, and climate experts have warned that the environmental damage from developing these oil and gas fields would destroy any economic benefits. --- **Original URL:** https://stockmark.it/no-more-uk-energy-bills-support-likely-before-price-cap-rise/ *Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*