London Daily

Focus on the big picture.
Friday, Dec 19, 2025

Cost of living: Boris Johnson says help with rising bills targeted at poorest

Cost of living: Boris Johnson says help with rising bills targeted at poorest

Boris Johnson has said the £15bn package unveiled by the chancellor to help people with soaring energy bills has been targeted at the poorest homes.

Labour says some of the money will go to better-off people not in hardship.

Speaking in County Durham, the prime minister insisted it would "overwhelmingly" support the most vulnerable households.

But he said he was "not going to pretend this is going to fix everything for everybody immediately".

He insisted the measures, which he described as a "big bazooka", were "massively redistributive", adding that three quarters of those that would benefit would be the most vulnerable.

Visiting Stockton-on-Tees, Mr Johnson also said the help was "much more generous" than what Labour had proposed, giving £1,200 to eight million households.

Earlier this week, UK energy regulator Ofgem said the typical household energy bill was set to rise by £800 in October, bringing it to £2,800 a year. Bills rose by £700 on average in April.

Chancellor Rishi Sunak announced the £15bn package on Thursday, following weeks of pressure to act from Labour, the Lib Dems and the SNP.


Part-funded by a 25% windfall tax on gas and oil company profits, all households will get £400 off their energy bills this October, and there will be further help for those most in need.

Labour's shadow chancellor Rachel Reeves told BBC Breakfast the windfall tax meant the government had "finally come to their senses", but asked: "What took them so long?"

The opposition has broadly welcomed the extra help, but says it is poorly targeted, too long in coming, and will funnel extra cash to people who do not need it.

Because the money is being paid directly to every household, people who own second or third homes will get multiple £400 payments.

But the Treasury said Labour's call for a cut to VAT on fuel - another of Sir Keir Starmer's key demands - would have benefited better-off households even more.

Labour's Rachel Reeves said second home owners should not get extra benefits from the energy bill discount


Responding to Labour's criticisms, Mr Sunak said second homes accounted for only "one or two per cent of the property stock" across the UK.

He suggested that wealthy individuals donate the £400 they will save on bills to charity, adding that he had done so himself.

"I'm sure you will join me in giving that money to charity," he said on ITV's Good Morning Britain.

He called the tax and the cost-of-living help measures "temporary". But the Institute for Fiscal Studies think tank says calls for assistance are likely to continue for at least another year, with bills expected to keep rising into 2023.

Asked on BBC Radio 4's Today programme if he planned another emergency package next year, even if it meant more government borrowing and higher taxes, the chancellor said: "I've always been prepared to respond to the situation on the ground".

He added: "We will be able to combat and reduce inflation. We have the tools at our disposal and after time it will come down."

Some Conservative MPs have criticised the use of a windfall tax to help fund assistance with bills, with the national debt - pushed higher by furlough and other help during the pandemic - currently standing at around £2.3 trillion.

One MP, Richard Drax, accused the chancellor of "throwing red meat to socialists", while another, Craig Mackinlay, described the policy as "tripe".

But Mr Sunak insisted he remained a "fiscal conservative" and wanted to manage the UK's finances "responsibly".

The Resolution Foundation, a think tank which focuses on people on lower incomes, described the measures as "a big and well-targeted package" that would "offset 82% of the rise in households' energy costs in 2022-23, rising to over 90% for poorer households".

Because higher income households had already seen major tax rises, it added, the overall effect of changes to taxes and benefits this year would be "highly progressive".


The prime minster described the help package as a 'big bazooka'


Newsletter

Related Articles

0:00
0:00
Close
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
×