1st Apr 2026 06:43
(Alliance News) - Keir Starmer is expected to provide an update on the cost of living amid concerns over the amount energy bills could rise as a result of the Middle East conflict.
The UK prime minister is due to speak at a press conference later on Wednesday morning after he vowed to "protect the British people at home and abroad".
It is thought Starmer's Downing Street press conference will cover both the conflict and government support for households as rising prices bite.
In an interview with BBC Breakfast, Chancellor Rachel Reeves said any support the government offers would be based on household income, but refused to commit to immediate support for drivers.
She said: "I want to learn the lessons of the past because when Russia invaded Ukraine, the richest, the best-off third of households got more than a third of the support. That makes no sense at all."
She added she had to be "careful" with cuts to fuel duty or VAT on petrol because it risked pushing up inflation.
Since fighting began in Iran, oil prices have soared in response to Tehran's block on tankers passing through the Strait of Hormuz.
Families with a 55-litre diesel car face paying more than GBP100 at the pump for the first time since December 2022.
It comes as Donald Trump alleged on his Truth Social platform that the UK was among several countries which "can't get jet fuel" ahead of the Easter bank holiday weekend – a claim which industry body Airlines UK has refuted.
The US president said the UK and other countries which did not take part in strikes against Iran should secure the Strait of Hormuz themselves.
The US president wrote online: "All of those countries that can't get jet fuel because of the Strait of Hormuz, like the UK, which refused to get involved in the decapitation of Iran, I have a suggestion for you: Number 1, buy from the US, we have plenty, and Number 2, build up some delayed courage, go to the Strait, and just TAKE IT.
"You'll have to start learning how to fight for yourself, the USA. won't be there to help you anymore, just like you weren't there for us."
Starmer has faced calls to ease the cost of living from Conservative shadow chancellor Mel Stride, who said his party "will get Britain drilling in the North Sea, cut bills by GBP200, lower taxes, and deliver a stronger economy and a stronger country".
To mark the start of April, Starmer said: "In an uncertain and volatile world, it is my government's duty to protect the British people at home and abroad.
"I know the public are concerned about the conflict in Iran and what it means for them and their families.
"I want to reassure them that they have a government on their side, working with allies on de-escalation and bearing down on the cost of living.
"Today, millions of people up and down the country will see energy bills go down by GBP117, wages go up for the lowest paid, and more support will be available for people who need it most – because of the decisions this government has taken.
"But we must go further to bear down on costs, and that means pushing for de-escalation in the Middle East and a re-opening of the Strait of Hormuz. That is the best way we can bring down the cost of living for families and that is my focus."
The price most households pay for energy under regulator Ofgem's price cap will fall by 7%, or GBP117 a year, to GBP1,641 from Wednesday.
But respected energy analyst Cornwall Insight said its prediction for the watchdog's price cap from July to September now stands at GBP1,929 for a typical dual fuel household – an increase of GBP288 or 18% on April's cap.
RAC figures on Tuesday showed average diesel prices at UK forecourts were 182.8 pence per litre, up 40p since the start of the conflict, which brought the cost of filling up a 55-litre family car to GBP100.52.
The average cost of petrol is 152.8p per litre, an increase of 20p since the war began.
Trump later declared a visit to the US by the King and Queen later in April will be "TERRIFIC!"
He revealed the "historic state visit" will take place between April 27 and 30.
State visits are undertaken on "the advice of His Majesty's Government".
The White House said Trump will also deliver an address to the US public on Wednesday evening to provide an update on the war.
By Will Meakin-Durrant, David Hughes and Neil Lancefield, Press Association
Press Association: Finance
source: PA
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