London Daily

Focus on the big picture.
Wednesday, Jan 21, 2026

Boris Johnson promises action over rising energy bills

Boris Johnson promises action over rising energy bills

Boris Johnson says he is talking to Chancellor Rishi Sunak over how the government could help people with soaring energy prices.

The prime minister is under pressure to act on rising household costs, ahead of further increases to capped bills due in April.

Some Tory MPs want cuts to green levies and VAT to help bring bills down.

Labour, which also wants VAT suspended, is also demanding higher taxes on oil and gas producers.

The party said it would use money from the hike to pay for more generous government payments to help poorer households with costs.

On Monday, Mr Johnson said ministers understood the difficulties people were facing, and "we're certainly looking at what we can do".

Trade body Energy UK predicts bills will surge by up to 50% in April, when the change to the price cap, due to be determined in February, kicks in.

There have been warnings that average households could pay about £700 more per year, amid surging prices for wholesale gas worldwide.

Speaking to reporters during a visit to a vaccination centre, Mr Johnson said rises were driven by "general inflationary pressure" caused by the world economy "coming back from Covid".

But he added: "We've got to help people, particularly people in low incomes, we've got to help people with the cost of their fuel - and that's what we're going to do."

Asked if he would meet Mr Sunak this week, he replied: "I've been meeting the chancellor constantly. I met the chancellor last night to talk about it."

Mr Johnson is expected to hold his first formal discussions with Mr Sunak on Monday, although a decision on what to do is not expected imminently.

Experts predict average annual bills could rise to about £2,000 next year


Labour is warning that the expected increase in the energy cap from April, in combination with the planned rise in National Insurance on workers, will lead to a cost of living crisis for many households.

The party wants an extra £3.5bn to be spent on the warm homes discount, increasing it from £140 to £400 per year, while doubling the number of households eligible to 9.3 million, around a third of the UK total.

It also wants to remove the 5% VAT rate on domestic energy bills from April for 12 months, which it says would produce an annual saving of £89 per household.

The party says it would pay for its plans through a year-long 10 percentage point increase to the corporation tax paid by North Sea energy producers on their profits, along with higher-than expected VAT receipts due to inflation.

Labour leader Sir Keir Starmer said his party was "stepping into the vacuum of leadership that the government has left with a plan to actually reduce bills".

Labour will attempt to use a Commons debate on Tuesday to set up a vote next month on its proposals for a VAT cut.

'Raking it in'


The Liberal Democrats have also called for a windfall tax on energy firms to pay more more generous support for poorer households, and its ten-year plan to improve home insulation.

Speaking last week, leader Sir Ed Davey said: "It can't be right that a few energy fat cats are raking it in from record gas prices while millions of people can't even afford to heat their homes."

But Oil and Gas UK, the offshore industry body, has said a windfall tax would offer "false hope" to consumers and damage the UK economy.

It argues the levy would not benefit users long-term, as it would discourage investment and make the UK more reliant on imported foreign gas.

Mr Johnson is also facing pressure from his own side to take action in the coming weeks to reduce costs on households.

Earlier this month, a group of Tory MPs and peers called on him to scrap VAT on bills, and review levies to help for government environmental policies.

On Monday, Conservative MP Stephen McPartland told the BBC the government should introduce "credit facilities" to help energy firms cope with volatile prices.

He said this would allow firms to draw on financial reserves as an alternative to increasing the government cap on standard tariffs from April.

Last week, Mr Johnson argued that a VAT cut would be too "blunt" a tool, as it would affect all households, including the richest, rather than targeting those most in need.


Johnson: Price rises making life very tough for people


Newsletter

Related Articles

0:00
0:00
Close
AI Everywhere: Power, Money, War, and the Race to Control the Future
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Trump vs the World Order: Disruption Genius or Global Arsonist?
Arctic Power Grab: Security Chessboard or Climate Crime Scene?
Starmer Steps Back from Trump’s ‘Board of Peace’ Amid Strained US–UK Relations
Prince Harry’s Lawyer Tells UK Court Daily Mail Was Complicit in Unlawful Privacy Invasions
UK Government Approves China’s ‘Mega Embassy’ in London Amid Debate Over Security and Diplomacy
Trump Cites UK’s Chagos Islands Sovereignty Shift as Justification for Pursuing Greenland Acquisition
UK Government Weighs Australia-Style Social Media Ban for Under-Sixteens Amid Rising Concern Over Online Harm
Trump Aides Say U.S. Has Discussed Offering Asylum to British Jews Amid Growing Antisemitism Concerns
UK Seeks Diplomatic De-escalation with Trump Over Greenland Tariff Threat
Prince Harry Returns to London as High Court Trial Begins Over Alleged Illegal Tabloid Snooping
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
×