London Daily

Focus on the big picture.
Wednesday, May 13, 2026

Bold action needed now on energy bills, says Alistair Darling

Bold action needed now on energy bills, says Alistair Darling

Chancellor during 2008 banking collapse says ‘fiddling around with small measures’ will not be enough
Ministers must act immediately on soaring energy prices to avoid people being hit with a “lethal cocktail” of high inflation and recession, Alistair Darling, the Labour chancellor during the 2008 banking collapse, has said.

With Liz Truss, the expected successor to Boris Johnson, still refusing to set out what additional help she could give households to pay bills, Darling said a key lesson from the 2008 crash was that action needed to be swift and radical.

“You need something significant and substantial and you need it now, because people’s bills are going to start coming in in a few weeks’ time,” Darling, who served as chancellor under Gordon Brown, told BBC Radio 4’s Today programme.

“If you don’t do that then you have the risks that I’ve been describing, that the economy will slip into recession, with all that entails. And when you’ve got that on top of the fact you’ve got inflation already at very, very high levels we haven’t seen since the 1970s, this is a lethal cocktail, which is why it needs bold action taken by the government now, not fiddling around with small measures that frankly won’t make any difference at all.”

While the government has already offered some support to households, Darling said this was now far from sufficient to meet the scale of the crisis.

He said: “Frankly, the stuff that’s been announced so far might have passed muster earlier this year. It simply won’t do now. You need something far more substantial than that unless you are willing to see substantial damage being done to our economy.”

A lesson from 2008 was that “you’ve got to do more than people expect and you’ve got to do it more quickly than people expect if it’s going to work”, Darling said.

“It’s going to cost money. When I announced the package in 2008 when it was the banking crisis, it amounted in total to about £500bn, but actually we got all of that money back over the following years. So what I think we need to see today from the government, from the new prime minister, is measures that will be big enough to deal with this.”

One new poll has said energy prices, which will increase by 80% in October and go up sharply again in January, mean 23% of UK adults will not use their heating at all this winter.

Truss has not ruled out offering direct support to people with energy bills, but she has repeatedly said her primary focus would be tax cuts, an intervention that would disproportionately benefit better-off households and offer less or no help to people reliant on pensions or benefits.

The result of the Conservative leadership contest will be announced next Monday, with Truss seen as almost certain to defeat Rishi Sunak. The winner is expected to be made prime minister the next day.
Newsletter

Related Articles

0:00
0:00
Close
The Great Western Exit: Why Best Citizens Are Fleeing the Rich World [PODCAST]
The New Robber Barons of Intelligence: Are AI Bosses More Powerful Than Rockefeller?
The End of the Old Order [Podcast]
Britain’s Democracy Is Now a Costume
The AI Gold Rush Is Coming for America’s Last Open Spaces [Podcast]
The Pentagon’s AI Squeeze: Eight Tech Giants Get In, Anthropic Gets Shut Out [Podcast]
The War Map: Professor Jiang’s Dark Theory of Iran, Trump, China, Russia, Israel, and the Coming Global Shock [Podcast]
Labour Is No Longer a National Party [Podcast]
AI Isn’t Stealing Your Job. It’s Dismantling It Piece by Piece.
Lawyers vs Engineers: Why China Builds While America Litigates [Podcast]
Churchill’s Glass: The Drunk, the Doctor, and the Myth Britain Refuses to Sober Up From
Apple issues an unusual warning: this is how your iPhone can be hacked without you doing anything
Kennedy’s Quiet War on Antidepressants Sparks Alarm Across America’s Medical Establishment
The Met Gala Meets the Age of Billionaire Backlash
Russian Oligarch’s Superyacht Crosses Hormuz via Iran-Controlled Route
Gunfire Disrupts White House Correspondents’ Dinner as Trump Is Evacuated
A Leak, a King, and a Fracturing Alliance
Inside the Gates Foundation Turmoil: Layoffs, Scrutiny, and the Cost of Reputational Risk
UK Biobank Breach Exposes Health Data of 500,000, Listed for Sale on Chinese Platform
KPMG Cuts Around 10% of US Audit Partners After Failed Exit Push
French Police Probe Suspected Weather-Data Tampering After Unusual Polymarket Bets on Paris Temperatures
CATL Unveils Revolutionary EV Battery Tech: 1000 km Range and 7-Minute Charging Ahead of Beijing Auto Show
Crypto Scammers Capitalize on Maritime Chaos Near the Strait of Hormuz: A Rising Threat to Shipping Companies
Changi Airport: How Singapore Engineered the World’s Most Efficient Travel Experience
Power Dynamics: Apple’s Leadership Shakeup, Geopolitical Risks in the Strait of Hormuz, and Europe's Energy Strategy Amidst Global Challenges
Apple's Leadership Transition: Can New CEO John Ternus Navigate AI Challenges and Geopolitical Pressures?
Italy’s €100K Tax Gambit: Europe’s Soft Power Tax Haven
News Roundup
Microsoft lost 2.5 millions users (French government) to Linux
Privacy Problems in Microsoft Windows OS
News roundup
Péter András Magyar and the Strategic Reset of Hungary
Hungary After the Landslide — A Strategic Reset in Europe
Meghan Markle Plans Exclusive Women-Focused Retreat During Australia Visit
Starmer and Trump Hold Strategic Talks on Securing Strait of Hormuz Amid Rising Tensions
Unofficial Australia Visit by Prince Harry and Meghan Expected to Stir Tensions with Royal Circles
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
UK Stocks Rise on Ceasefire Momentum and Renewed Focus on Diplomacy
UK to Hold Further Strategic Talks on Strait of Hormuz Security
Starmer Voices Frustration as Global Tensions Drive Up UK Energy Costs
UK Students Voice Concern Over Proposal for Automatic Military Draft Registration
Rising Volatility Drives Uncertainty in UK Fuel and Petrol Prices
UK Moves to Deploy ‘Skyhammer’ Anti-Drone System to Strengthen Airspace Defense
New Analysis Explores UK Budget Mechanics in ‘Behind the Blue’ Feature
Man Arrested After Four Die in Channel Crossing Tragedy
UK Tightens Immigration Framework with New Sponsor Rules and Fee Increases
UK Foreign Secretary Highlights Impact of Intensified Strikes in Lebanon
UK Urges Inclusion of Lebanon in US-Iran Ceasefire Framework
UK Stocks Ease as Ceasefire Doubts in Middle East Weigh on Investor Confidence
UK Reassesses Cloud Strategy Amid Criticism Over Limited Support Measures
×