UK ministers are exploring a targeted energy bill relief scheme to help struggling households this winter as Chancellor Rachel Reeves weighs options amid Middle East tensions. Government officials are considering using local authorities to deliver aid through the £3 billion Crisis and Resilience Fund, focusing on those "most in need" rather than universal payments.

This approach would be more cost-effective for the Treasury, as councils would identify recipients or require applications for assistance. Officials suggest targeting high-energy-use households, such as those in poorly insulated rural homes, while still prioritizing benefit recipients. Families above the benefits threshold but facing high bills could also qualify for support.

The contingency planning comes as Labour faces criticism from Conservative leader Kemi Badenoch, who accused the party of becoming "the welfare party." Treasury officials emphasize that targeted support is crucial, noting that between 2022 and 2024, households in the top income decile received an average of £1,350 in direct energy bill support.