London Daily

Focus on the big picture.
Monday, Aug 31, 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
London Science Museum Ends Long-Running BP Sponsorship
Scottish Homeowners Prepare Valuation Challenges Over Proposed Mansion Tax
UK Prosecutors Consider Charges Against Undercover Police in Spycops Scandal
James Cleverly Leaves Shadow Cabinet to Run for London Mayor
Avanti West Coast Drivers Agree 3.6% Pay Rise, Averting Strike Action
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
UK Government Retreats From Plan to Unfreeze Personal Income Tax Threshold
Northern Ireland Leaders Press UK Government for Sustainable Funding Settlement
UK Health Agency Warns Nationwide Salmonella Outbreak Could Worsen
NHS Warns Autism and ADHD Assessment Costs Have Become Unsustainable
UK Rejects Moratorium on AI Data Centres Despite Energy and Water Concerns
Thames Water Creditors Offer Government Golden Share in £10 Billion Rescue Plan
UK Warns Defence Executives of Russian Assassination and Sabotage Threats
Bank of England Holds Interest Rate at 3.75% Amid Inflation Risks
UK Restricts Early Prison Release for Serious Offenders as Jails Near Capacity
Genetic Study Finds Medieval Britain’s ‘Conquest Man’ Had Scandinavian Origins
Kemi Badenoch Plans Conservative Frontbench Reshuffle After Cleverly Departure
Nissan Sunderland Plant Highlighted as Key Economic Anchor for North East England
UK Arts Report Finds Women Face Persistent Barriers to Career Progression
Private Equity Consolidation of UK Veterinary Practices Raises Consumer Cost Concerns
South West Water Ranked Worst in England for Environmental Performance
British Train Drivers Secure 3.6% Pay Rise, Averting Strike Threat
UK Prosecutors Consider Charges Against Officers in Undercover Policing Scandal
James Cleverly Leaves Conservative Shadow Cabinet to Run for London Mayor
Allianz Explores £5 Billion Takeover of British Roadside Assistance Group AA
Bank of England Holds Interest Rate at 3.7% as Growth Stalls and Inflation Eases
UK Government Announces Electricity VAT Cut and £2 Bus Fare Cap
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
Reform UK Proposes £30 Tax Credit for Long HMRC Helpline Waits
Labour Debates Caps on Political Donations Ahead of Future Elections
England Accelerates Housing and Planning Reforms Amid Affordability Crisis
NHS Expands Walk-In Community Health Centers to 40 Locations
UK Regulators Expect Meta to Apply Stronger Child Safety Standards Globally
UK Groups Demand Faster Transport Decarbonization After Extreme Summer Weather
UK Launches 10,000 Work Experience Placements as Youth Unemployment Concerns Rise
UK Government Faces Difficult Autumn Budget Choices Over Defense, Spending and Taxes
UK Government Rejects Calls to Slow AI Data Center Expansion
IMF Raises UK Growth Forecast to 1% Despite Global Supply Chain Risks
×