London Daily

Focus on the big picture.
Tuesday, Jul 14, 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
Beer Industry Warns UK Rules Could Limit Growth of Alcohol-Free Market
Home Office Faces Legal Challenges Over Asylum Seeker Accommodation Closures
UK Heatwaves Linked to More Than Two Thousand Seven Hundred Deaths as Climate Debate Intensifies
Home Secretary Faces Pressure Over Political Security After Ann Widdecombe Murder Investigation
United Kingdom Opens Trade Consultation With Indonesia, Philippines, United Arab Emirates and Uruguay
Robert Jenrick Joins Reform UK After Leaving Conservative Party Leadership Role
Counter-Terrorism Police Take Over Investigation into Murder of Former MP Ann Widdecombe
Andy Burnham Secures Strong Labour Backing in Race to Succeed Keir Starmer
Global Markets Slide as Middle East Conflict Escalation Sends Oil Prices Higher
UK Prime Minister Keir Starmer Offers Condolences Following Death of Qatar’s Father Amir
UK Regional Innovation Policy Focuses on Research Clusters Across Scotland, Wales, and Northern England
UK Corporate Transparency Rules Set to Become More Strict Under Modern Slavery Reform Plans
UK Civil Service Estate Strategy Shifts Government Activity Away From London
UK Strengthens National Security Powers Through New Threat Designations
Greater Manchester Police Conduct Drink and Drug Driving Operations After Football Events
UK Government Advances Darlington Economic Campus With Construction Milestone
UK Authorities Increase Football-Related Security Operations After Tournament Fixtures
UK Invests Fifty-One Million Pounds in National Cryogenics Facility and Regional Innovation Hubs
UK Moves Toward Tougher Modern Slavery Reporting Rules With Corporate Penalties
UK Government Reports Forty-Three Million Pounds in Savings From Office Estate Reform
UK Government Expands Civil Service Regional Strategy With Manchester and Darlington Campus Projects
UK Designates Iran’s Islamic Revolutionary Guard Corps as National Security Threat
United Kingdom Financial Markets Monitor Business Response to Economic Policy Changes
Scottish Renewable Energy Expansion Highlights Need for Faster Grid Development
Wales and Regions Strengthen Focus on Economic Development Through Tourism and Investment
Retail Industry Warns High Street Businesses Remain Under Pressure
Police Chiefs Highlight Growing Challenges Managing Protests and Public Order
Agriculture Leaders Seek Clarity on Post-Brexit Farming Support and Environmental Rules
Transport Unions Warn of Further Industrial Action Over Pay and Working Conditions
Welsh Tourism Sector Reports Strong Growth Driven by Domestic and International Visitors
National Infrastructure Review Gains Support as Leaders Seek Faster Project Delivery
Financial Markets Assess Impact of United Kingdom Corporate Tax Policy Changes
Northern Ireland Assembly Debates Cross-Border Trade and Infrastructure Cooperation Plans
Government Opens Consultations on Housing Reform and Planning System Changes
Scottish Government Faces Pressure to Accelerate Offshore Wind and Grid Expansion
National Energy System Operator Warns Grid Investment Is Needed for Future Electricity Demand Growth
United Kingdom Research Council Invests in Artificial Intelligence and Biotechnology Innovation Hubs
United Kingdom Expands Oversight of Skilled Worker Visa Sponsors Amid Migration Debate
Cross-Party MPs Call for National Infrastructure Strategy Review to Accelerate Economic Growth
Prime Minister Announces One Billion Pound NHS Funding Package Ahead of Winter Pressures
Bank of England Signals Cautious Approach to Interest Rates as Inflation Remains Above Forecasts
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
×