Keir Starmer's New Year Plan Targets Cost of Living with Energy Bill Reductions and Policy Changes
Labour leader Keir Starmer has unveiled a new year plan aiming to cut the cost of living, focusing on reducing energy bills, lowering mortgage costs through interest-rate cuts, and ending the two-child benefit cap. A standalone bill to abolish this benefit cap is expected next week.
To reinforce the cost-of-living message and ease tensions within the party ahead of the 2026 local and devolved elections, Labour is planning Chequers receptions for MPs during January and February.
Starmer describes 2026 as a "year of proof," where Labour intends to deliver tangible improvements in household bills, communities, and the NHS. He positions Labour as the party that can get Britain back on track, opposing what he calls the decline and division offered by others, including Reform UK.
However, the plan has faced some internal dissent, with MPs expressing frustration over the party's first 18 months in government. Reactions have been mixed, and some MPs have indicated they will not attend the Chequers gatherings.
Energy Secretary Ed Miliband is finalizing a £13 billion warm homes plan, which focuses on green technologies such as solar panels and batteries. This plan includes scrapping the existing Eco scheme and reducing renewables levies, which is expected to save households about £138.
The warm homes plan aims to achieve short- to medium-term reductions in energy bills and support the broader cost-of-living messaging with funding for energy efficiency improvements.
