London Daily

Focus on the big picture.
Monday, Jun 08, 2026

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
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
×