The British government said on Wednesday, the 6th of Aban, that to reduce the pressure from energy price increases following the war in Iran, it will pay 100 pounds in financial aid to 20 million eligible households and extend the reduction in VAT on electricity until July 2027.

John Healey, the UK’s finance minister, said that the war in the Middle East and rising energy costs have placed significant pressure on household budgets and the country’s economy.

Healey said: “I know that, with conflict continuing in the Middle East, rising energy bills are a real concern for people.”

He added that the aim of the government’s measures is to reduce the financial burden on families.

Under the announced plan, eligible households in tax bands A to D in the UK will receive 100 pounds from January 2027. The extension of the electricity tax reduction is also expected to lower the annual energy price cap by about 50 pounds.

The finance minister said that the oil price has risen from around $70 to more than $100 per barrel, and the gas price has nearly tripled since February.

Healey also announced that the government has used part of its financial capacity to absorb the economic consequences of the war in Iran and to support households and the economy.