London Daily

Focus on the big picture.
Friday, Aug 14, 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
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
UK Small Businesses Face Continued Cash Flow and Tax Pressures
Greatham Marsh Restoration Restores Tidal Wetland in Hartlepool After More Than 200 Years
UK Health Regulator Urges University Students to Check Meningitis and Measles Vaccination Status
Mining Remediation Authority Completes Major Ground Stabilization Works in Scottish Community
UK Food Crime Investigators Seize 33 Tonnes of Illegal Food in Multi-Agency Operation
Technical Qualification Uptake Hits Record High as Advanced Mathematics Results Improve
UK Summer Temperatures on Course to Challenge Long-Standing Records, Met Office Says
UK Farmers Bring Forward Cereal Harvests as Drought Threatens Yields
Wildfires Surge Across England and Wales as Fire Chiefs Report Record July
UK Nurses Warn of Heat Risks as Hospital Staff Struggle With Extreme Temperatures
Southern Water Seeks Drought Order for Hampshire and Isle of Wight Amid Water Shortages
UK Heatwave Pushes West London Temperature to 38.1 Degrees as Health Alerts Continue
UK Economy Grows 0.4% in Second Quarter Despite Global Uncertainty
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
UK Residents Gather to Watch Rare Partial Solar Eclipse
Reform UK Deputy Leader Richard Tice Faces Criticism Over Legal Threat Against Guardian Journalist
Michael Forsyth Elected Speaker of the House of Lords
Cambridge Researchers Launch £20 Million Human Organoid Drug Testing Programme
Heathrow Loses European Passenger Traffic Lead to Istanbul Airport
Households Near New UK Electricity Pylons to Receive £250 Annual Energy Bill Discount
UK Government Estimates Zero-Hours Contract Ban Could Cost Employers Up to £3 Billion a Year
Robert Jenrick Leaves Conservatives for Reform UK in Major Parliamentary Defection
UK Police Chiefs Urge Government to Block Early Release of Andrew Harper Killers
UK Government Holds Emergency Cobra Meeting as Drought and Heatwave Raise Wildfire Risks
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
Donald Trump Warns FIFA Against Ousting Gianni Infantino Amid Revolt by Global Football Leaders
Jeff Bezos Joins Investor Group Closing In on $6 Billion Liverpool FC Stake
Police Conduct Cross-Border Raids Against Northern England Drug Network
Nicola Sturgeon Protested at Edinburgh Festival Fringe Event
Major UK Retail Chain Enters Administration With One Hundred Fifty-Four Stores Set to Close
Heathrow Renews Call for Runway Expansion After Losing Europe’s Busiest Airport Ranking
Government Condemns One Million Pound Thames Water Executive Bonus Amid Drought
NHS England Says More Than One Hundred Thousand Hepatitis C Patients Have Been Cured
UK Foreign Secretary Ed Miliband Calls for End to West Bank Settler Violence
UK Prepares for Deepest Partial Solar Eclipse Since Nineteen Ninety-Nine
UK Heatwave Triggers Amber Health Alerts as Economic Losses Reach Four Point Four Billion Pounds
UK Offers Electricity Bill Discounts to Communities Hosting New Power Infrastructure
Bank of England Expected to Hold Interest Rates at Three Point Seven Five Percent
UK Government Moves to Ban Subscription Traps and Misleading Retail Discounts
Andy Burnham Gives Councils New Powers to Block Betting and Vape Shops
UK Councils to Receive Sweeping Planning Powers to Ban New Vape and Betting Shops
Nicola Sturgeon Says She Has No Contact With Estranged Husband After SNP Embezzlement Case
Police Arrest Two Men After Aberdeenshire Defense Technology Office Break-In
Greater Manchester Councils Gain Powers to Restrict New Vape and Betting Shops
Coroner Finds Treasury Workplace Failures Contributed to Personal Assistant’s Suicide
English and Welsh Courts Ban Meta Smart Glasses Over Recording and Privacy Risks
Strait of Hormuz Disruption Could Double UK Inflation and Trigger Recession, Forecasters Warn
×