Prime Minister Keir Starmer has issued a resolute pledge that his government will maintain relentless pressure in tackling the cost of living crisis, declaring that 2026 will be the year the British public begins to feel 'real change' from its policies.
A Year of Tangible Change
In a direct message to families, the Prime Minister will insist there can be "no let-up" in the administration's efforts to ease financial burdens. He promises to deploy "every tool" at the government's disposal to improve lives, framing the coming year as a pivotal moment where Labour's economic choices translate into palpable, daily benefits for citizens.
This commitment follows Chancellor Rachel Reeves's assertion that the government defied economic forecasts in 2025 and is determined to do so again in the new year. Government insiders point to a track record of six interest rate cuts since taking office, falling inflation, and mortgage costs reaching their lowest point since the 2022 mini-budget as evidence their plan is working.
Concrete Measures for Households
Starmer's pledge will be accompanied by a list of specific interventions designed to put money back in people's pockets. He will highlight a £150 reduction in energy bills, an increase in the National Living Wage, and help with transport costs.
Key transport relief includes the first freeze in rail fares for over three decades, a cap on bus fares, and an extension of the fuel duty cut until at least September 2026. The PM is scheduled to meet with commuters next week to discuss these measures further.
"This Labour government is on your side," Starmer will say. "We’re helping cut the cost of your commute and the school run too... This is real change that you will be able to feel day in day out. Britain is turning the corner and 2026 is the year more people will feel renewal becoming reality."
Cabinet Focus and Chancellor's View
At the first Cabinet meeting of 2026 on Tuesday, the Prime Minister will instruct ministers to intensify their efforts, acknowledging that many families remain deeply concerned about their finances. "I know families across the country are still worried about the cost of living," he will state. "There will be no let-up in our fight to make life better for them."
Chancellor Rachel Reeves, while defending the government's economic strategy, has conceded there is "more to do." Speaking to The Sunday Mirror, she noted that since the election, wages have risen faster than inflation, millions benefited from minimum wage increases, and interest rates have fallen at their fastest pace in 17 years.
"We promised change and we are delivering change," Reeves said. "But I know there is more to do. The cost of living is still bearing down on families... We defied the forecasts last year and I am determined we do so again."
