London Daily

Focus on the big picture.
Friday, May 29, 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
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×