What Labour will do to ease the cost of living: How we’ll bring down bills, get wages rising and tackle sky-high prices

What Labour will do to ease the cost of living: How we’ll bring down bills, get wages rising and tackle sky-high prices

After 14 years of the Tories, people in Britain are facing soaring mortgages, sky-rocketing bills and the highest tax burden in 70 years.

And if Rishi Sunak and the Tories are given five more years in the General Election on 4 July, the average British household is set to be £5,883 worse off.

People simply can’t afford five more years of the Conservatives.

It doesn’t have to be this way.

Keir Starmer has changed the Labour Party to put it back in the service of working people. That means making economic stability a priority, a long term plan for growth, and real action to tackle stagnating wages and rising bills.

Labour has five long term missions to change the direction of Britain with a decade of national renewal, and six first steps to make an immediate difference to people’s lives.

It’s time for change.

Rishi Sunak wants you to believe that you’ve never had it so good. But the eye-watering cost of living is a direct result of him and 14 years of the Conservatives in power.

Here’s how much more people can expect to pay if Rishi Sunak has his way:

  • Energy price cap: £479 increase
  • Groceries: £1,040 increase
  • Council tax: £421 increase
  • Mortgages: £2,880 increase 
  • Personal tax: £874 increase
  • Motoring: £189 increase

Total: £5,883

What will Labour do about the cost of living?

One of Labour’s first steps to change Britain is a promise to deliver economic stability with tough spending rules, so we can grow our economy and keep taxes, inflation, and mortgages as low as possible.

On this foundation of economic stability, Labour’s plans for growth include:

  • Building 1.5 million homes with the biggest boost to affordable, social and council housing for a generation
  • Making work pay with a new deal for working people
  • Creating 650,000 good jobs across the country through the National Wealth Fund

How will Labour tackle out of control bills?

Labour will switch on Great British Energy, a publicly-owned clean power company, to cut annual energy bills for good, paid for by a windfall tax on oil and gas giants, and we’ll insulate millions of homes – making families better off.

What will Labour do to help people be paid more?

Labour’s Plan to Make Work Pay is our plan to make work pay. It’s how we’ll boost wages, deliver secure work and support working people to thrive – banning exploitative zero hours contracts, ending fire and rehire, and delivering a genuine living wage that for the first time takes account of the cost of living.

The New Deal is a core part of our mission to grow Britain’s economy and raise living standards in every part of the country. Labour will make Britain work for working people.

Notes:

Energy Price Cap:

Groceries:

  • Soaring energy costs and red tape from the Conservatives’ bungled Brexit deal have caused the cost of food to soar.
  • This Parliament the price of food has gone up by 31%, comparing latest food and non-alcoholic price index referring to March 2024 with the average of the 2019-20 financial year. 
  • Source: https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/d7bu/mm23.
  • In 2019-20 the average UK household spent £60 a week on food and non-alcoholic beverages. That means paying for the same weekly shop now costs £19 a week more. 

Source: https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/expenditure/bulletins/familyspendingintheuk/april2021tomarch2022, Table A33

 Council Tax:

Mortgages:

  • The Conservatives crashed the economy and sent interest rates to their highest levels in 40 years.
  • The Bank of England in December 2023 said: For the typical owner-occupier mortgagor rolling off a fixed rate between 2023 Q2 and the end of 2026, their monthly mortgage repayments are projected to increase by around £240, or around 39% https://www.bankofengland.co.uk/financial-stability-report/2023/december-2023
  • That is equivalent to £2,880 per year

Personal Tax:

  • The Conservatives have frozen thresholds for Income Tax and National Insurance, dragging more people into paying higher taxes.
  • OBR figures show that Income Tax and National Insurance Receipts have gone up from £336bn in 2019/20 to an estimated £471bn in 2024/25. As a share of the economy that is equivalent to a rise of 1%, or £25bn, equivalent to £874 per household.

Motoring: