The British government is considering targeted financial support for vulnerable households as rising global energy prices threaten to increase the cost of heating and electricity for millions of people.

Finance minister Rachel Reeves indicated that ministers are examining options to help lower-income families most exposed to higher bills, particularly households that rely on heating oil and are not fully protected by the standard energy price cap.

The proposed approach would prioritise assistance for those most at risk of fuel poverty rather than offering broad support to all households.

The discussion comes amid renewed volatility in global energy markets, with oil prices climbing sharply due to tensions and conflict in the Middle East.

Higher crude prices are feeding through to fuel and heating costs across Europe, raising concerns that household energy bills could rise again after a period of relative stability.

Officials say the government’s response will focus on carefully targeted relief measures designed to shield the most vulnerable while protecting public finances.

Reeves has ruled out the kind of universal subsidies that were introduced during the energy crisis following Russia’s invasion of Ukraine, arguing that a blanket approach would be too costly at a time when the government is attempting to control borrowing.

The Treasury is exploring several potential options, including direct financial support or bill credits aimed at households that depend on heating oil, which is widely used in rural areas and often falls outside the regulatory protections applied to gas and electricity tariffs.

The debate reflects broader concerns about the persistence of high energy costs in Britain, where household bills remain significantly above levels seen before recent global shocks.

Even after modest reductions in the official price cap, energy costs continue to place pressure on family budgets and contribute to wider cost-of-living challenges.

The government has already introduced several measures aimed at easing energy costs, including expanding eligibility for the Warm Home Discount and shifting some policy costs from electricity bills into general taxation.

These steps are intended to reduce average household bills and provide additional relief for lower-income families.

Ministers say further action will depend on how global energy markets evolve in the coming months.

If price pressures intensify, additional targeted support could be introduced to prevent vulnerable households from facing severe financial strain during the next heating season.