Prime Minister Andy Burnham has set out a package of measures aimed at easing pressure on household finances, saying too many people who work hard are still struggling with everyday bills and insisting his Government is focused on putting more money back into people's pockets.
In a new intervention, Burnham highlighted action on electricity bills, bus fares, subscriptions, rail disruption and support for pubs and music venues.
He said:
Too many people who work hard every day dread the bills coming in. I don't think that's right.
Burnham added that higher costs for food, energy and travel meant many households were finding there was "less left at the end of the month".
VAT removed from electricity bills
One of the Government's most immediate measures is the removal of VAT from household electricity bills from 1 October 2026 to 31 March 2027.
The Government estimates the temporary tax cut will save the average household around £45 a year, with larger savings possible for households that rely more heavily on electricity.
Ofgem has incorporated the change into the latest energy price cap, although higher wholesale gas prices mean overall household energy costs remain under pressure.
£2 bus fare cap and free travel for disabled passengers
Burnham also pointed to the decision to reduce the national single bus fare cap in England outside London from £3 to £2 from January 2027.
The measure is backed by £400 million of government funding and will run throughout 2027.
From April, eligible disabled passengers in England will also be able to use concessionary bus passes throughout the day, removing existing time restrictions and providing free bus travel 24 hours a day.
Crackdown on subscription traps and misleading discounts
The Prime Minister also highlighted new consumer protections aimed at making subscriptions easier to cancel and tackling misleading discounts.
New rules will require clearer information, reminders before payments and simpler cancellation arrangements. The Government says the reforms could save consumers around £400 million annually.
Burnham said:
If it says half price, it should be half price.
The Government is separately targeting retailers that artificially inflate prices before advertising supposed discounts.
New protection when trains are cancelled
From 20 September, passengers whose trains are cancelled will be able to use another operator's service to complete their journey without buying a new ticket.
The Department for Transport says the change is intended to end situations where passengers are stranded or face extra costs because their original operator cannot run the service.
Burnham said the rule would mean passengers could "automatically and immediately" continue their journeys on alternative services free of charge.
Business rates cut for pubs, clubs and live music venues
The Prime Minister also pointed to the Government's package for pubs, social clubs and live music venues.
The Government announced in July that eligible businesses will receive a 20% reduction in business rates bills from April 2027, with ministers estimating a typical pub could save around £1,100.
That builds on existing relief in 2026-27, when eligible pubs and live music venues are receiving a 15% reduction.
Burnham: individual measures 'add up'
Burnham acknowledged that the measures would not solve every financial pressure households face.
He said:
None of this fixes everything. I won't pretend it does.
But these changes add up. They put money back in your pocket and give you a bit more room to breathe.
His intervention seeks to frame a series of individual policy changes as part of a wider cost-of-living programme, combining direct household savings with consumer protections and support for community businesses.
Burnham's message is that Labour wants the impact of government to be felt through everyday costs — from electricity and transport to subscriptions and local high streets — while acknowledging that wider pressures on living standards remain.
