London Daily

Focus on the big picture.
Thursday, Mar 12, 2026

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
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
Global Energy Agency Announces Record Release of 400 Million Barrels to Stabilize Oil Markets Amid Hormuz Disruption
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
US and UK Army Chiefs Strengthen Cooperation on the Future of Armored Warfare
Britain’s Search for the Next ARM Intensifies as Startups and Investors Target the Semiconductor Frontier
Three US Strategic Bombers Arrive at RAF Fairford as Iran Conflict Intensifies
Cancer Death Rates in the UK Fall to the Lowest Level on Record
UK Government Bond Yields Retreat Slightly After Sharp Spike Triggered by Middle East Conflict
UK Chancellor Warns Middle East War Could Push Inflation Higher
UK Prime Minister Warns Iran Conflict Could Drive Up Prices and Threaten Economic Stability
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
×