London Daily

Focus on the big picture.
Monday, Mar 30, 2026

Boris Johnson to stress work as the fix for cost of living crisis

Boris Johnson to stress work as the fix for cost of living crisis

Ministers remain unable to decide on ways to relieve poverty as they wrangle over windfall tax for energy companies
Boris Johnson hopes to blunt calls for urgent action on the cost of living crisis by stressing that work is the best route out of poverty, as an energy firm boss warned that 40% of households could soon be in fuel poverty.

No 10 sources confirmed on Sunday that the prime minister will continue to throw the spotlight on the healthy state of the job market, in the face of the rising clamour to help families struggling with their bills.

Ministers have as yet been unable to agree what more should be done amid continued wrangling over the merits of a windfall tax, with Downing Street keen to stress the £22bn that has already been spent on supporting households, and highlighting the need to grow the economy.

Johnson told the Welsh Conservative conference on Friday: “I’m proud to say that you have to go all the way back to 1974 to find a time when the unemployment was as low in the UK as it is today, and whatever the difficulties that the post-Covid economy faces now, I just want you to dwell on that for a second.”

However, with wages failing to keep up with 9% annual inflation, many of those struggling to make ends meet are already in jobs. Official figures show that 41% of universal credit claimants are in work, while the Joseph Rowntree Foundation calculates that 68% of families living in poverty include at least one working adult.

The Liberal Democrats’ economy spokesperson, Christine Jardine, said: “Hardworking families across the UK are really struggling right now as the price of everything from food to fuel continues to rise. Yet the Conservatives are doing little to help.” She said many people were “juggling long hours and multiple jobs just to scrape by”.

With parliament breaking for the Whitsun recess on Thursday, any fresh package of measures to help households cope with surging inflation is now not expected until 6 June at the earliest.

The Treasury says the chancellor, Rishi Sunak, is awaiting more details of how sharply energy bills are likely to rise in the autumn.

Michael Lewis, the chief executive of E.ON, Britain’s biggest energy supplier, said on Sunday that one in eight of its customers were already in arrears. Speaking on BBC One’s Sunday Morning show, Lewis said: “I read emails from customers regularly, I listen in on calls and, frankly, some people are at the edge. They simply cannot pay and that will get worse.”

The price cap for consumer bills had a record rise last month, from £1,277 to £1,971 a year, and is expected to rise to at least £2,600 in October – and Lewis said it could even hit £3,000. “It’s a very, very significant impact and that’s why we’ve called upon the government to take more action. We do need more intervention in October and it has to be very substantial,” he said.

“What we do know is that we are seeing a significant number of people in fuel poverty. That’s to say, more than 10% of their disposable income spent on energy.” He said currently around a fifth of households were in fuel poverty and added: “In October, our model suggests that that could rise to 40% if the government doesn’t intervene in some way.”

The former Treasury minister Jesse Norman became the latest senior Conservative to support a one-off levy on the profits of oil and gas firms on Sunday, calling such a policy “ethically principled and pragmatic”.

Several cabinet ministers, including the business secretary, Kwasi Kwarteng, and the Brexit opportunities minister, Jacob Rees-Mogg, have made clear their objections in public, however. Rees-Mogg warned against the idea that business was a “honeypot” that “you can just raid whenever you feel like”.

Others including the foreign secretary, Liz Truss, have lodged a public plea for lower taxes, in an unusual show of disunity. Truss said a “low-tax economy” was the way to tackle the crisis, at a time when taxes have been rising.

Sunak has not ruled out a windfall tax, which polling suggests would be popular with the public, insisting all options remain on the table.

It is understood one proposal under consideration is a tapered tax that would fall less heavily on firms that invest, though No 10 sources suggested it had not yet been discussed with the prime minister.

Johnson and Sunak have been meeting regularly to thrash out a set of policies but have not yet decided whether to stick to targeted measures to help the poorest families or include costlier across-the-board proposals. These could include a VAT cut or bringing forward the income tax cut that Sunak has planned for 2024.

Ministers have consistently struggled to respond to the question of what more the government will do to help households, after the chancellor’s spring statement was widely regarded as inadequate.

A string of Tory backbenchers from across the party have called on the government to do more, including Northern Research Group chair Jake Berry, the liaison committee chair Bernard Jenkin and the education committee chair Robert Halfon.
Newsletter

Related Articles

0:00
0:00
Close
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
UK Housing Divide Deepens as Older Owners Hold Wealth While Under-30s Face Mounting Barriers
London Demonstration Calls on UK to Recognize Iranian Opposition’s Provisional Government
UK Green Party Vote on ‘Zionism is Racism’ Motion Collapses Amid Internal Disputes and Technical Failures
SNL UK Ignites Debate with Sharp Royal Satire Targeting Prince Andrew and Prince William
EU Proposes ‘Emergency Brake’ to Resolve Deadlock in UK Youth Mobility Talks
Thousands Rally in London to Oppose Rise of Far-Right Movements
Hong Kong Official Rejects Allegations of Surveillance Orders Targeting UK-Based Dissidents
PayPal Expands Cryptocurrency Services to Allow UK Users to Buy and Sell Bitcoin
UK Minister Challenges Reform Party’s ‘Pro-Family’ Agenda as Debate Intensifies
Concerns Grow Over Meningitis Risk Among UK Students Amid Warning Signs of New Outbreaks
Japanese Grand Prix 2026: Schedule, UK Start Times and Full Broadcast Details
Electric Vehicles Seen as Strategic Solution to UK Fuel Reserve Concerns
Rise of Lone-Actor Threats and Online Radicalisation Drives New Wave of Antisemitic Attacks in the UK
Canada Advances Plan to Ban Cryptocurrency Donations in Election Campaigns
UK Faces Looming Medicine Shortages as Iran Conflict Threatens Supply Chains
Deadly Meningitis Outbreak in the U.K. Highlights Urgent Need for Vaccination
Fresh Claims Emerge Over Harry and Meghan’s Australia Visit as Insider Speaks Out
NATO Assessment Indicates UK Defence Spending Has Fallen Below Alliance Average
FTSE 100 Slips as Middle East Tensions Weigh on Investor Sentiment
UK Economy Begins to Feel Early Impact of Iran Conflict as Policy Challenges Intensify
Russian National Jailed in UK After Assault Case Linked to Barron Trump’s Alert
Energy Price Surge Accelerates Shift Away from Fossil Fuels in UK Homes
UK Museums House More Than 260,000 Human Remains, New Report Reveals
Surging UK Gilt Yields Reflect Inflation Pressures and Fiscal Uncertainty
UK Issues Updated Guidance on Children’s Screen Time with Focus on Balance and Wellbeing
UK Migration Figures Show Shifting Trends Across Asylum, Visas and Channel Crossings
UK Watchdog Launches Probe into Five Firms Over Alleged Fake Reviews and Ratings
Jaguar Land Rover Halts Production at UK Plant Amid Supplier Disruption
UK Police Reverse Position, Confirm Arrests Will Resume for Palestine Action Protests
UK Small Businesses Face Europe’s Steepest Cost Pressures, New Survey Reveals
US Envoy Urges UK to Proceed with King’s Visit Amid Diplomatic Sensitivities
FTSE 100 Drops Over One Percent as Middle East Tensions Weigh on Markets
UK CO2 Plant Set to Reopen as Authorities Move to Safeguard Supplies Amid Middle East Tensions
Trump Urges Stronger Defence Investment as He Questions Allied Naval Capabilities
New COVID Variant Detected in UK Raises Concerns Over Vaccine Effectiveness
FTSE Russell Moves to Standardise Free-Float Rules for UK and International Listings
HBO Max Launches in UK and Ireland, Marking Major Step in Global Streaming Expansion
UK Signals Readiness to Seize Russian ‘Shadow Fleet’ Vessels in Escalation of Sanctions Enforcement
Escalating Middle East Conflict Seen as Major Threat to UK Economic Stability
Early Challenges Mark Prince Harry and Meghan’s Australia Visit
UK Government Rejects Cover-Up Claims After Theft of Former PM Aide’s Phone
Cyprus Opens Strategic Talks with UK Over Sovereign Base Areas
UK Faces Risk of Sharp Inflation Surge Despite Stable Pre-Crisis Figures
UK Police Arrest Two Over Suspected Antisemitic Arson as Iran Link Investigated
UK Inflation Holds at Three Percent Ahead of Oil Price Shock from Iran Conflict
×