Chancellor John Healey is currently finalizing plans for a major intervention to assist low-income UK households with rising energy costs. With forecasts indicating that energy bills are set to increase by hundreds of pounds starting in January, the Treasury is considering a support package valued at more than £1 billion.

The proposed strategy primarily involves increasing the discount currently provided to households receiving specific government benefits. While the final details of the budget have not yet been confirmed, reports suggest the Chancellor intends to prioritize this targeted approach over more expansive measures.

There is a notable difference in strategy within the government regarding how to address these costs. Energy Secretary Miatta Fahnbulleh has reportedly advocated for a larger-scale intervention, specifically calling for the removal of levies from energy bills entirely. However, sources indicate that the Chancellor is likely to reject this broader proposal in favor of the more limited, benefit-focused spending plan. The Treasury’s approach appears aimed at balancing the need for immediate relief for the most vulnerable while maintaining fiscal constraints.