Prime Minister Sir Keir Starmer has unequivocally stated that tackling the cost of living remains his government's principal focus, just one day after Chancellor Rachel Reeves delivered her landmark Autumn Budget.
The Prime Minister's Pledge
In a clear and direct statement posted on social media platform X, Sir Keir outlined his administration's central commitment. "My main priority is to tackle the cost of living," he declared. The Prime Minister directly linked this aim to a key measure from the Budget, stating this is "why we are making energy bills cheaper, cutting them by £150 on average from April." He concluded by framing this action as "the difference a Labour government makes."
Scrapping the 'Failed' ECO Scheme
This significant financial relief for households stems from a major policy shift announced by Chancellor Rachel Reeves in the House of Commons on November 26. The government confirmed it will abolish the Energy Company Obligation (ECO) scheme.
Ms Reeves told MPs that the Conservative-era scheme, originally designed to combat fuel poverty and reduce carbon emissions, has not delivered for the people who need it most. The Chancellor revealed the scheme currently adds £1.7 billion a year to national energy bills. Crucially, she stated that for 97% of families in fuel poverty, the ECO scheme has actually cost them more money than it has saved.
Labelling it a "failed scheme," the Chancellor confirmed its scrapping, along with the removal of other legacy costs from consumer bills.
The Direct Impact on Household Finances
The direct result of this decision, the government asserts, will be tangible savings for every family. From April 2026, the Chancellor has pledged a £150 cut from the average household energy bill.
In her Budget speech, Ms Reeves positioned this as a fundamental choice, contrasting the Labour government's approach with that of the previous Conservative administration. She committed to putting "money off bills, and in the pockets of working people," and vowed not to "leave working families to bear the brunt of high prices, like the Tories did."
This move, framed as a core component of the government's strategy to ease the financial pressure on Britons, now stands as the Prime Minister's declared main priority in the wake of the Budget's unveiling.
