Prime Minister Keir Starmer will attempt to rebuild his relationship with voters and his own party in a new year push to reduce the cost of living. In a speech in the coming days, he will highlight recent cuts to energy bills and interest rates, as well as the end of the two-child benefit cap.
Starmer's chief adviser, Morgan McSweeney, has called 2026 “the year of proof”, with the prime minister saying in his new year message that voters will begin to see positive changes in their bills, communities and health service. He also took aim at Reform UK, which is expected to challenge Labour in upcoming elections, saying his government will defeat “decline and division”.
Labour MPs have reported facing voter anger over early policy decisions during the Christmas break, with one describing the mood as “far worse than I thought”. Starmer enters 2026 as the least popular prime minister on record, according to some polls, with his party expected to suffer heavy losses in May's local and devolved elections.
To win over his own MPs, Starmer has invited Labour members to a series of new year drinks receptions at Chequers in January and February. The government is also planning to introduce a standalone bill next week to abolish the two-child benefit cap.
Energy Secretary Ed Miliband is finalising a £13bn warm homes plan focused on green technology like solar panels and batteries, rather than home insulation. The plan will scrap regulations preventing solar panels from being plugged into domestic sockets, a technology common in Germany. Scrapping the current Eco scheme and reducing renewables levies could save energy users an estimated £138 on average, according to Cornwall Insight.
