London Daily

Focus on the big picture.
Monday, Jan 12, 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
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
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
×