London Daily

Focus on the big picture.
Wednesday, Sep 16, 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 Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
UK Government Promises Clearer Student Loan Guidance After Repayment Backlash
Charities Warn Unpaid Carers May Die Before Receiving Government Compensation
Dover Unrest Prompts Review of UK Counter-Extremism Strategy
Celtic Summit Leaders Reassert Right to Pursue Independence From UK
NHS Records Busiest Summer on Record Amid Severe Heatwaves
Harrods Faces Potential £150 Million Compensation Bill Over Al Fayed Abuse Claims
UK Parliament Opens Debate on Landmark Assisted Dying Legislation
Metropolitan Police Investigate Reform UK Over Alleged Foreign Electoral Donations
UK Economy Expands 0.4% in July as AI Investment Boosts Activity
Bank of England Signals Caution on Rates as Inflation Pressures Persist
Tesco Alerts Police After Scammers Use Its Branding in AI-Generated Fraud
×