London Daily

Focus on the big picture.
Sunday, Nov 16, 2025

Labour to reveal 'comprehensive' cost of living plan on Monday as they pledge to scrap 'outrageous' prepayment energy meter costs

Labour to reveal 'comprehensive' cost of living plan on Monday as they pledge to scrap 'outrageous' prepayment energy meter costs

Energy analysts have predicted that typical energy bills could rise to approximately £3,500 in October and more than £4,200 in January.

Sir Keir Starmer will lay out his party's "comprehensive plan" to deal with the costs of living crisis - including rising energy bills - on Monday.

Labour on Thursday vowed to stop the "outrageous" premiums that energy prepayment meter customers face.

It comes as Boris Johnson doubled down on his insistence that it is for his successor to "make significant fiscal decisions" after talks with energy bosses ended with no new measures to ease the cost of living crisis.

Speaking on Friday, Sir Keir said he would outline his new policy proposal in more detail next week.

"We do need a strategic, a credible, plan and that's exactly what's missing from this government," he said.

He added: "On Monday I'm going to be setting out a comprehensive set of proposals, a plan for how we handle the upcoming costs in the autumn, while what you've had from the Conservative Party is two leadership candidates arguing with each other about just how appalling their record in government has been, and a prime minister who's a lame duck - he recognises there's a problem and he's not prepared to do anything about it."

The Labour leader highlighted that his party proposed a windfall tax on energy companies, which the government then introduced. He also said his party had proposed taking VAT off energy bills - something Rishi Sunak was now advocating for.

Sir Keir said: "For the best part of 12 months, Labour has been absolutely leading on this issue."

Earlier on shadow justice secretary Steve Reed denied that Gordon Brown was leading the party's policy in Sir Keir's absence after the ex-PM called for energy firms to be temporarily nationalised, in his third major intervention this week.

Meanwhile, Mr Johnson yesterday said he would continue to urge the energy sector to ease the financial pressures facing struggling families, but he repeated his stance that it is for his successor in Number 10, either Liz Truss or Rishi Sunak, to "make significant fiscal decisions", a Treasury spokesperson said.

Energy analysts have predicted that typical energy bills could rise to approximately £3,500 in October and more than £4,200 in January.

Mr Johnson's successor will not be announced until 5 September.

Shadow chancellor Rachel Reeves has now confirmed that part of Labour's action would be to end the "unjustifiable" cost of prepayment energy meters.

Specifically, the use of premiums that can result in people with energy prepayment meters being charged more than those who pay by direct debit.

The party says the measure is part of a wider cost of living package being developed by Sir Keir, who, along with Mr Johnson, has been criticised in the last week for taking a holiday at a time of crisis.

Labour says the prepayment meter policy would help to bring prepayment energy prices into line with those for direct debit customers and estimates that it would provide relief to four million households.

"It's outrageous that people on prepayment meters have to pay more for their energy. Why should those with the least have to pay more to heat their homes and put the lights on? This is unjustifiable and morally wrong," Ms Reeves said.

"As energy prices spiral, this unfair prepayment premium must end. Labour would make sure that no-one pays over the odds for the same gas and electricity that everyone else gets, as well as taking broader action to help people manage their bills over the winter."

It is thought that Labour would remove the gap between the two price caps and reimburse energy companies for the difference between October and March - at an estimated cost of £113m.

Labour says this would be paid for by a strengthened windfall tax on oil and gas companies.

A spokesperson for the Department for Business, Energy and Industrial Strategy said: "Pre-payments meters remain an effective way for people to pay for their energy use whilst managing costs and debt, while the energy price cap protects four million pre-payment meter customers from overcharging by energy suppliers.

"We understand that global inflationary pressures are squeezing household finances. This is why we are providing a £37bn package of support to help households in these challenging times, including a £400 discount on energy bills which can be accessed by those on prepayment meters and £1,200 to around eight million low-income households."

Newsletter

Related Articles

0:00
0:00
Close
Nearly Half of Job Losses Under Labour Government Affect UK Youth
UK Chancellor Reeves Eyes High-Value Home Levy in Budget to Raise Tens of Billions
UK Urges Poland to Choose Swedish Submarines in Multi-Billion € Defence Bid
US Border Czar Tom Homan Declares UK No Longer a ‘Friend’ Amid Intelligence Rift
UK Announces Reversal of Income Tax Hike Plans Ahead of Budget
Starmer Faces Mounting Turmoil as Leaked Briefings Ignite Leadership Plot Rumours
UK Commentator Sami Hamdi Returns Home After US Visa Revocation and Detention
UK Eyes Denmark-Style Asylum Rules in Major Migration Shift
UK Signals Intelligence Freeze Amid US Maritime Drug-Strike Campaign
TikTok Awards UK & Ireland 2025 Celebrates Top Creators Including Max Klymenko as Creator of the Year
UK Growth Nearly Stalls at 0.1% in Q3 as Cyberattack Halts Car Production
Apple Denied Permission to Appeal UK App Store Ruling, Faces Over £1bn Liability
UK Chooses Wylfa for First Small Modular Reactors, Drawing Sharp U.S. Objection
Starmer Faces Growing Labour Backlash as Briefing Sparks Authority Crisis
Reform UK Withdraws from BBC Documentary Amid Legal Storm Over Trump Speech Edit
UK Prime Minister Attempts to Reassert Authority Amid Internal Labour Leadership Drama
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
×