A recent survey has exposed a significant disconnect between Labour MPs and the British public regarding the government's handling of the rising cost of living. The poll, conducted by YouGov on behalf of the Cost of Living Action (COLA) group, surveyed 110 Labour MPs and found that 82 per cent believe the government is performing well in addressing the cost of living crisis.
This stands in stark contrast to the views of the general public, with 80 per cent of respondents stating that the government is doing a poor job of combating rising costs. The findings come as campaigners warn that the issue is undermining Labour's popularity, following the party's record losses in the recent local elections.
Economic concerns dominate public agenda
According to YouGov data, the economy has been the British public's most important issue since the end of last year, with 55 per cent ranking it among their top three concerns in May. This compares to 49 per cent for immigration and asylum. The cost of living crisis has been exacerbated by the global economic fallout from the US-Iran war, which has driven up oil prices and affected the cost of essentials such as energy, fuel, and food.
Prime Minister Sir Keir Starmer has stated that tackling the cost of living is a key priority for 2026, pledging to maintain focus on the issue despite the global pressures. However, critics argue that the government's efforts have been insufficient.
Energy bills set to rise
Energy bills, which were effectively protected until July by Ofgem's price cap set at £1,641 for April to June, are expected to increase. Cornwall Insight forecasts a rise of up to £202 for the average household from July. This comes as a blow to Labour's pledge to cut energy bills by £150.
The survey also found that 80 per cent of Labour MPs support a windfall tax on energy companies, and 66 per cent back measures to subsidise energy bills for all households, with targeted support for those with higher needs. These figures are broadly in line with public opinion, which stands at 69 per cent and 60 per cent support respectively.
Government response and criticism
Chancellor Rachel Reeves has pledged targeted energy bill support based on household income but has stopped short of universal measures. In April, the government announced a five-point plan to tackle the cost of living, including a £117 reduction in the energy price cap and investments in energy security to reduce vulnerability to market volatility.
Conor O’Shea, coordinator of the Cost of Living Action coalition, stated: "Labour MPs clearly know that this is a critical issue, but their perception of how effectively the government is tackling it is massively out of step with public opinion. Failure on the cost of living is the real issue underlying this week’s renewed bout of Westminster psychodrama."
A Treasury spokesperson defended the government's approach, saying: "We have the right economic plan to deal with price rises caused by the war in the Middle East. It’s not our war, we’re not joining it, but we’re not immune to its effects which is why we’re supporting families with the cost of living in a responsible way." The spokesperson highlighted measures such as the £117 reduction in energy bills, an increase in the national living wage, and a freeze on rail fares for the first time in three decades.
