London Daily

Focus on the big picture.
Friday, Apr 03, 2026

Ministers ordered to find new ‘non-fiscal’ ways to combat cost of living

Ministers ordered to find new ‘non-fiscal’ ways to combat cost of living

Labour says government should announce emergency budget to help struggling families
Cabinet ministers have been ordered to come up with new “non-fiscal” ways to combat the cost of living, in a tacit acknowledgment that the government’s spring statement failed to match the enormity of the crisis.

Boris Johnson said the government would renew efforts to promote schemes with low take-up, including tax-free childcare of about £2,000 a year that about 1.3m households are yet to claim.

About 850,000 eligible households are also not claiming pension credit, which can be worth over £3,300 a year.

But Labour said the government needed to go further and that it was now time for an emergency budget to announce new help for struggling families. In a new analysis, the party found that families will fork out an extra £10bn on petrol, compared with just this time last year.

Labour’s shadow transport secretary, Louise Haigh, said: “This is a savage extra cost for working people. The Conservative government needs to set out an emergency budget to tackle its cost of living crisis – and support Labour’s call to put money back in the pockets of working people.”

The chancellor, Rishi Sunak, has been firm with departments that there is limited possibility of major further spending.

Almost 90% of British households reported an increase in their cost of living last month as they were hit by escalating fuel, food and borrowing costs, according to the Office for National Statistics. It said a quarter of all those in its survey were struggling to pay their bills and 17% had turned to loans or borrowing on credit cards to make ends meet.

Sunak, who announced a 5p fuel duty cut as well as raising the limit on the national insurance payment threshold, admitted at his statement last month that households would face the biggest cut in their living standards since the 1950s.

The government, which pressed ahead with a national insurance rise to tackle the NHS backlog, has been urged to go further particularly in helping with the cost of energy bills, beyond the £150 council tax rebate.

A new targeted communications campaign will highlight areas where people can claim support and Johnson will tell cabinet ministers that he expects a crackdown on private companies profiteering from the crisis. This comes as the business secretary, Kwasi Kwarteng, wrote to Ofgem to urgently look into claims that energy suppliers may be making unjustified increases to consumers’ direct debits.

Ahead of cabinet, the prime minister said: “With household bills and living costs rising in the face of global challenges, easing the burden on the British people and growing our economy must be a team effort across Cabinet.

“We have a strong package of financial support on offer, worth £22bn, and it’s up to all of us to make sure that help is reaching the hardest-hit and hard-working families across the country.

“We will continue to do all we can to support people without letting government spending and debt spiral, whilst continuing to help Brits to find good jobs and earn more, no matter where they live.”

Labour has said it would enact five measures now to ease the burden on household budgets. They include a windfall tax on oil and gas producers to cut home energy bills, including a VAT cut.

The party said it would give small and mid-size enterprises a business rates discount with a tax on online giants; scrap the national insurance hike; fund a major upgrade of household insulation; and instruct the National Crime Agency to investigate £11.8bn of Covid fraud and error.
Newsletter

Related Articles

0:00
0:00
Close
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
Bank of England Signals Caution as Bailey Advises Markets Against Expecting Rate Hikes
UK to Convene Global Coalition to Restore Shipping Through Strait of Hormuz
Trump Signals Possible NATO Reassessment, Emphasizes Stronger U.S. Strategic Autonomy
Australia Joins British-Led Efforts to Reopen Strait of Hormuz Amid Escalating Tensions
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
×