London Daily

Focus on the big picture.
Friday, Jul 24, 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
UK Balances Security Commitments With Economic Growth Priorities
Retail and Hospitality Sectors Navigate Consumer Caution and Tax Changes
Key Trends to Watch
British Land Appoints Joanne McNamara as New Chief Executive Officer
UK Government Names New Life Peers Including Former Military and Civil Service Leaders
Institute of Directors Urges Government Action on Employment Costs and Skills Shortages
IMF Raises UK 2026 Growth Forecast to One Percent
UK Retail Sales Growth Slows Sharply as Households Cut Discretionary Spending
UK Ten-Year Bond Yields Remain Above Five Percent as Government Faces Higher Debt Costs
UK Government Plans Earlier End to Low-Value Import Duty Exemption for Online Retail Parcels
Reform UK Leads Tight Westminster Voting Poll as Conservatives and Labour Remain Close
Royal Navy Carrier Strike Group Completes First Arctic and North Atlantic Mission Phase
Andy Burnham Government Cuts Business Rates for Pubs and Music Venues by Twenty Percent
UK Inflation Falls to Two Point Six Percent in June as Food and Fuel Prices Ease
Andy Burnham Becomes UK Prime Minister Facing Growth Challenges and Fiscal Pressure
UK Government Reviews Long-Term Balance Between Cost Relief, Industry Support, and Public Investment Priorities
BBC Could Receive Permanent Royal Charter Under Government Proposal
Northern Ireland Proposes End to Severe Weather Exemptions for Electricity Compensation Rules
Andy Burnham Holds Talks With UK Devolved Leaders on Regional Cooperation and Devolution
House of Lords Launches Inquiry Into Risks Facing UK Democratic Institutions
ScottishPower Renewables Plans Major Rebuild of Whitelee Wind Farm With Fewer Larger Turbines
UK and Italy Leaders Discuss Global Combat Air Programme and Future European Cooperation
UK Government Announces Six Hundred Million Pound Aerospace Investment Package at Farnborough Airshow
European Union Approves UK Participation in Ninety Billion Euro Ukraine Support Loan Framework
Rolls-Royce Warns UK Government Over Jet Engine Funding Decision and Future Manufacturing Plans
UK Inflation Falls to Two Point Six Percent in June as Fuel and Food Prices Ease
Andy Burnham Begins Premiership With Two Pound England Bus Fare Cap and Electricity Tax Cut Plan
YouGov Poll Shows Tight Competition Among UK Political Parties
Space Technology Investment Expands Through UK-US Cooperation at Farnborough Airshow
UK Opens Final India Young Professionals Scheme Ballot for Three Thousand Applicants
United Kingdom Approved for Ukraine Financial Support Initiative With EU Partners
UK and Ireland Leaders Discuss Security, Energy and Regional Cooperation
British Heart Foundation Identifies Ten UK Areas With Severe Shortages of Defibrillators
Former Southern Water Executives Charged Over Alleged Water Test Manipulation Scheme
IMF Warns UK Economic Growth Will Slow to One Percent in 2026
UK Inflation Falls to Two Point Six Percent in June as Food and Energy Costs Ease
United Kingdom Joins European Union Loan Mechanism to Support Ukraine’s Defense Needs
Prime Minister Andy Burnham Introduces Two-Pound Bus Fare Cap and Energy Tax Relief Measures Across England
Northern Ireland Secures Additional Infrastructure Funding From UK Treasury
Wales Approves Port Investment Plans to Support Green Energy Supply Chains
UK Financial Regulator Simplifies Stock Market Rules to Attract More Listings
UK Reports Decline in Small Boat Crossings Across the English Channel
UK Government Creates Emergency Support Fund for Financially Pressured Universities
Scottish Government Launches Economic Strategy Focused on Innovation and Renewable Industries
UK Expands Sustainable Farming Incentives to Support Environmental Measures
UK Government Introduces New Neighbourhood Policing Standards Across England and Wales
UK Competition Regulator Opens Review of Artificial Intelligence Foundation Models
UK Deepens Indo-Pacific Security Cooperation After Talks With Singapore and Japan
UK Announces Rail Modernisation Plan for Northern England With New Infrastructure Funding
UK Government Updates Housing Planning Rules to Accelerate Residential Construction
×