Rachel Reeves has held urgent talks with senior oil and gas executives after warnings that energy bills for UK households could rise by around £500 due to the war in the Middle East. The meeting at Downing Street included representatives from companies such as BP and Offshore Energies UK, as the Government assessed the economic impact of the conflict. Rising oil and gas prices have already unsettled global markets and pushed energy costs higher. Economists warn that sustained increases could add to inflation and significantly raise household energy bills, particularly affecting lower-income families who spend a larger share of their income on utilities. Reeves has signalled she still intends to end the Energy Profits Levy, also known as the windfall tax, but may reconsider the timing depending on market conditions. Industry leaders argue that removing the tax would encourage long-term investment in the North Sea energy sector. The Government is also monitoring whether further intervention may be needed to protect households if energy prices continue to climb. See

The Government has launched a £15 billion Warm Homes Plan aimed at expanding solar power, heat pumps, and other green technologies across households over the next five years. The scheme seeks to triple the number of homes with solar panels while increasing uptake of low-carbon heating. It includes a mix of grants and low or zero-interest loans, available regardless of household income. The Boiler Upgrade Scheme will be extended until 2029/30, offering grants of up to £7,500 for air-source heat pumps. An additional £600 million has been allocated to fully fund solar panels and battery storage for low-income households. It is estimated that combining solar, battery storage, and heat pumps could save an average household up to £1,300 a year. The plan is also expected to boost demand for skilled installers, creating opportunities for green-tech businesses and workforce training. Ministers say the programme supports decarbonisation, energy security, and cost-of-living relief, though experts stress the importance of improving insulation alongside new technologies.