London Daily

Focus on the big picture.
Monday, Nov 24, 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
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
UK Inflation Eases to 3.6 % in October, Opening Door for Rate Cut
UK Accelerates Munitions Factory Build-Out to Reinforce Warfighting Readiness
UK Consumer Optimism Plunges Ahead of November Budget
A Decade of Innovation Stagnation at Apple: The Cook Era Critique
Caribbean Reparations Commission Seeks ‘Mutually Beneficial’ Justice from UK
EU Insists UK Must Contribute Financially for Access to Electricity Market and Broader Ties
UK to Outlaw Live-Event Ticket Resales Above Face Value
President Donald Trump Hosts Saudi Crown Prince Mohammed bin Salman at White House to Seal Major Defence and Investment Deals
German Entertainment Icons Alice and Ellen Kessler Die Together at Age 89
UK Unveils Sweeping Asylum Reforms with 20-Year Settlement Wait and Conditional Status
UK Orders Twitter Hacker to Repay £4.1 Million Following 2020 High-Profile Breach
×