London Daily

Focus on the big picture.
Friday, Nov 14, 2025

Sir Keir Starmer insists Labour's 'radical' energy plan is 'real answer' to cost of living crisis

Sir Keir Starmer insists Labour's 'radical' energy plan is 'real answer' to cost of living crisis

The Labour leader says his party's package of support is aimed at households who will "struggle to pay their bills during this winter" - as the PM's spokesperson says no further interventions to ease cost of living pressures will be made until his successor is appointed on 5 September.

Sir Keir Starmer has said Labour's plan to deal with the "national emergency" of spiralling energy costs is "robust" and a "real answer" to soaring household bills.

The Labour leader said his plan would keep soaring household bills down by freezing the energy price cap and it would be paid for by introducing a new windfall tax on oil and gas companies' profits without a "major tax loophole" the government's windfall tax has.

Speaking in Exeter on Monday, the Labour leader said his "radical" plan "will take us through the winter" and accused the government of "saying absolutely nothing".

He admitted to Sky News he would benefit from the plan as everyone would receive help but said even though he could afford to pay £4,000 in energy bills a year on his salary of about £140,000, the blanket help would help pull down inflation by "about 4%".

"This plan will take us through this winter and there are so many people who are anxious about what's going to happen in the autumn, anxious that they can't pay their bills," Sir Keir said.

"So this is a real answer, a costed answer to them, it's really the opposite of what you've got from the government who are saying absolutely nothing."

He continued: "The fear is that if the government doesn't step up, the prices, the average will go up from £2,000 or so to £3,500, then up again to £4,200.

"We're saying we'll hold that back, we won't allow those prices to go up and we'll make sure that those that are actually making a lot of profit out of this pay for holding those prices down.

"And that is the sort of plan that I think people are very, very receptive to."

Sir Keir added that the package of support is "primarily aimed at those households who are going to struggle to pay their bills during this winter".

The plan has been criticised for helping everyone with their bills, not just low-income households, but Sir Keir said that would help lower inflation, which is set to rise to more than 12% in October, the Bank of England has said.

But Sir Keir told Sky News: "This is across the board because many, many households are impacted by this.

"It has the massive benefit, but it doesn't allow the price increases to take place in October and January.

"But it has another benefit, which is really important, it reduces inflation by 4% because it's across the board."

He admitted the plan was only for six months "to get us through the winter" and a new plan would be needed in April next year as the situation will most likely have changed by then.

Sir Keir also accused the two remaining Tory leadership contenders - Liz Truss and Rishi Sunak - of not producing any "credible proposals" to tackle the energy crisis.

Mr Sunak has unveiled a plan to slash rising energy bills for up to 16 million vulnerable people, which he hopes will propel him to 10 Downing Street.

While Ms Truss has said cutting taxes is the best way to help with living costs over winter - but has dismissed calls for a windfall tax on oil and gas firms' profits.

It came as the PM's official spokesperson confirmed that Mr Johnson is on leave this week and that no further interventions to ease cost of living pressures will be made until his successor is appointed on 5 September.

Energy analysts have predicted that typical energy bills could rise to approximately £3,500 in October and more than £4,200 in January.

While bills are set to cost more than two months of average wages next year unless the government intervenes, a report has suggested.

On Sunday evening, Sir Keir pledged that people would not "pay a penny more" on their winter energy bills and that the party's plans would save the typical family £1,000 immediately, get energy costs under control for the future and help tackle inflation.

The party said this will be achieved by preventing the energy cap from rising this winter, which would be paid for by an extra tax from oil and gas giants.

The price cap, which is the maximum that companies in England, Wales and Scotland can charge an average customer for energy costs, should remain at £1,971.

The plans in Labour's "emergency package" include:

• Freezing the price cap, which the party says will reduce inflation by 4%

• Support for customers not protected by the price cap

• Equalising the prices for people on prepayment meters and those who pay bills monthly

• Closing a loophole in the government's energy profits levy

• A promise to use the already pledged £14bn of non-targeted funding to prevent bills from rising

• Insulating 19 million homes across the country over the next decade to reduce energy demand and lower bills

Labour says removing "a major tax loophole" in the windfall tax announced by Rishi Sunak when he was chancellor earlier this year will help to fund its plans.

The party adds that new investment allowances within the policy mean that for every £1 invested, 91.25p will go back to companies in additional tax relief - despite oil and gas producers announcing bumper profits.

Labour says removing these new investment allowances and backdating the start date to January, when the party called for a windfall tax, would raise £8bn, which could ease household living costs.

However, the Institute for Fiscal Studies (IFS) has questioned Labour's explanation as to how it would fund the support package.

The think tank's director Paul Johnson told BBC Radio 4's Today programme that the party's plan to cancel the energy price cap rise - if extended from the proposed six months to a year - would cost as much as the COVID furlough scheme.

The government has announced households will receive £400 to help pay fuel bills this autumn.

The PM admitted on Friday that the plans do not go far enough, but also reiterated his insistence that it is for his successor to "make significant fiscal decisions" after talks with energy bosses ended with no new measures being announced.

Newsletter

Related Articles

0:00
0:00
Close
UK Upholds Firm Rules on Stablecoins to Shield Financial System
Brussels Divided as UK-EU Reset Stalls Over Budget Access
Prince Harry’s Remembrance Day Essay Expresses Strong Regret at Leaving Britain
UK Unemployment Hits 5% as Wage Growth Slows, Paving Way for Bank of England Rate Cut
Starmer Warns of Resurgent Racism in UK Politics as He Vows Child-Poverty Reforms
UK Grocery Inflation Slows to 4.7% as Supermarkets Launch Pre-Christmas Promotions
UK Government Backs the BBC amid Editing Scandal and Trump Threat of Legal Action
UK Assessment Mis-Estimated Fallout From Palestine Action Ban, Records Reveal
UK Halts Intelligence Sharing with US Amid Lethal Boat-Strike Concerns
King Charles III Leads Britain in Remembrance Sunday Tribute to War Dead
UK Retail Sales Growth Slows as Households Hold Back Ahead of Black Friday and Budget
Shell Pulls Out of Two UK Floating Wind Projects Amid Renewables Retreat
Viagogo Hit With £15 Million Tax Bill After HMRC Transfer-Pricing Inquiry
Jaguar Land Rover Cyberattack Pinches UK GDP, Bank of England Says
UK and Germany Sound Alarm on Russian-Satellite Threat to Critical Infrastructure
Former Prince Andrew Faces U.S. Congressional Request for Testimony Amid Brexit of Royal Title
BBC Director-General Tim Davie and News CEO Deborah Turness Resign Amid Editing Controversy
Tom Cruise Arrives by Helicopter at UK Scientology Fundraiser Amid Local Protests
Prince Andrew and Sarah Ferguson Face Fresh UK Probes Amid Royal Fallout
Mothers Link Teen Suicides to AI Chatbots in Growing Legal Battle
UK Government to Mirror Denmark’s Tough Immigration Framework in Major Policy Shift
UK Government Turns to Denmark-Style Immigration Reforms to Overhaul Border Rules
UK Chancellor Warned Against Cutting Insulation Funding as Budget Looms
UK Tenant Complaints Hit Record Levels as Rental Sector Faces Mounting Pressure
Apple to Pay Google About One Billion Dollars Annually for Gemini AI to Power Next-Generation Siri
UK Signals Major Shift as Nuclear Arms Race Looms
BBC’s « Celebrity Traitors UK » Finale Breaks Records with 11.1 Million Viewers
UK Spy Case Collapse Highlights Implications for UK-Taiwan Strategic Alignment
On the Road to the Oscars? Meghan Markle to Star in a New Film
A Vote Worth a Trillion Dollars: Elon Musk’s Defining Day
AI Researchers Claim Human-Level General Intelligence Is Already Here
President Donald Trump Challenges Nigeria with Military Options Over Alleged Christian Killings
Nancy Pelosi Finally Announces She Will Not Seek Re-Election, Signalling End of Long Congressional Career
UK Pre-Budget Blues and Rate-Cut Concerns Pile Pressure on Pound
ITV Warns of Nine-Per-Cent Drop in Q4 Advertising Revenue Amid Budget Uncertainty
National Grid Posts Slightly Stronger-Than-Expected Half-Year Profit as Regulatory Investments Drive Growth
UK Business Lobby Urges Reeves to Break Tax Pledges and Build Fiscal Headroom
UK to Launch Consultation on Stablecoin Regulation on November 10
UK Savers Rush to Withdraw Pension Cash Ahead of Budget Amid Tax-Change Fears
Massive Spoilers Emerge from MAFS UK 2025: Couple Swaps, Dating App Leaks and Reunion Bombshells
Kurdish-led Crime Network Operates UK Mini-Marts to Exploit Migrants and Sell Illicit Goods
UK Income Tax Hike Could Trigger £1 Billion Cut to Scotland’s Budget, Warns Finance Secretary
Tommy Robinson Acquitted of Terror-related Charge After Phone PIN Dispute
Boris Johnson Condemns Western Support for Hamas at Jewish Community Conference
HII Welcomes UK’s Westley Group to Strengthen AUKUS Submarine Supply Chain
Tragedy in Serbia: Coach Mladen Žižović Collapses During Match and Dies at 44
Diplo Says He Dated Katy Perry — and Justin Trudeau
Dick Cheney, Former U.S. Vice President, Dies at 84
Trump Calls Title Removal of Andrew ‘Tragic Situation’ Amid Royal Fallout
UK Bonds Rally as Chancellor Reeves Briefs Markets Ahead of November Budget
×