London Daily

Focus on the big picture.
Wednesday, Jul 15, 2026

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
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Forget Tinder: The Surprising Platform Where People Find Love
UK Government Faces Growing Debate Over Local Control of Immigration Enforcement
UK Biodiversity Forum Highlights Business Need to Protect Natural Environment
UK Parliament to Consider Workplace Temperature Limits Amid Climate Concerns
UK Parliament Considers Independent Immigration Appeals Authority Proposal
BBC Charter Renewal Scrutiny Intensifies as Parliament Reviews Broadcaster’s Future
Parliament Reviews Future of UK Maternity and Neonatal Care Services
UK-India Trade Accelerator Launched to Help Smaller Firms Expand Into Indian Market
UK Business Leaders Meet in Edinburgh to Address Economic Risks From Biodiversity Loss
UK Parliament Prepares for Sir Keir Starmer’s Final Prime Minister’s Questions Before Leadership Transition
Green Party-Led Lewisham Council Moves Against Cooperation With Home Office Immigration Raids
UK Government Faces Parliamentary Pressure Over Capita Contracts in Shared Services Programme
UK Economy Expected to See Modest Growth as OECD Highlights Fiscal and Global Risks
Public Accounts Committee Warns UK Government’s Four Point Three Billion Pound Shared Services Plan Risks Failure
EU and UK Sign Agreement Removing Gibraltar Border Controls After Years of Post-Brexit Uncertainty
OECD Warns UK Must Maintain Fiscal Discipline as Andy Burnham Prepares to Become Prime Minister
UK-India Free Trade Agreement Enters Into Force as Businesses Seek New Growth Opportunities
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
On the Island That Did Not Yield to Trump, There Is No Electricity, and 10 Million Live in Darkness
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
Key Trends to Watch
United Nations Expert Calls for Full Implementation of Supreme Court Ruling on Legal Definition of Sex
Industry Coalition Urges Labour Lawmakers to Back Continued North Sea Oil and Gas Production
Parliamentary Committee Calls for Tougher Restrictions on Unhealthy Food Advertising
Government Expands Awaab's Law to Cover Heat and Additional Housing Hazards
Energy Regulator Opens Independent Investigation Into National Grid Operator
United Kingdom and European Union Sign Landmark Gibraltar Border Agreement
Chancellor Unveils Financial Services Reform and Artificial Intelligence Strategy at Mansion House
Counterterrorism Police Take Over Investigation Into Killing of Former Minister Ann Widdecombe
Beer Industry Warns UK Rules Could Limit Growth of Alcohol-Free Market
Home Office Faces Legal Challenges Over Asylum Seeker Accommodation Closures
UK Heatwaves Linked to More Than Two Thousand Seven Hundred Deaths as Climate Debate Intensifies
Home Secretary Faces Pressure Over Political Security After Ann Widdecombe Murder Investigation
United Kingdom Opens Trade Consultation With Indonesia, Philippines, United Arab Emirates and Uruguay
Robert Jenrick Joins Reform UK After Leaving Conservative Party Leadership Role
Counter-Terrorism Police Take Over Investigation into Murder of Former MP Ann Widdecombe
Andy Burnham Secures Strong Labour Backing in Race to Succeed Keir Starmer
Global Markets Slide as Middle East Conflict Escalation Sends Oil Prices Higher
UK Prime Minister Keir Starmer Offers Condolences Following Death of Qatar’s Father Amir
UK Regional Innovation Policy Focuses on Research Clusters Across Scotland, Wales, and Northern England
UK Corporate Transparency Rules Set to Become More Strict Under Modern Slavery Reform Plans
UK Civil Service Estate Strategy Shifts Government Activity Away From London
UK Strengthens National Security Powers Through New Threat Designations
Greater Manchester Police Conduct Drink and Drug Driving Operations After Football Events
UK Government Advances Darlington Economic Campus With Construction Milestone
UK Authorities Increase Football-Related Security Operations After Tournament Fixtures
UK Invests Fifty-One Million Pounds in National Cryogenics Facility and Regional Innovation Hubs
UK Moves Toward Tougher Modern Slavery Reporting Rules With Corporate Penalties
×