Starmer's 2026 Pledge: Lower Bills & Benefit Changes to Ease Cost of Living
Starmer's New Year pledge on cost of living

Prime Minister Keir Starmer has used his New Year message to promise that 2026 will be the year millions of British families finally begin to feel tangible relief from the cost of living crisis.

A Year of "Positive Change" Promised

In a statement aimed at setting the tone for the coming months, the Labour leader declared that the policy changes enacted since his party's 2024 election victory will start to have a "noticeable difference" for household finances. He struck an optimistic note, asserting that the choices made by his government will lead to lower bills and improved public services.

Starmer specifically highlighted two key Labour policies: cuts to energy bills and the abolition of the controversial two-child benefit cap. The latter change is set to allow larger families to claim hundreds of pounds more in benefits each month, providing direct financial support.

Policies Underpin Renewal Pledge

The Prime Minister outlined a timeline for delivery, stating that people will see more police on the streets by March, and will benefit from reduced energy bills and an increase in new health hubs from April. He also pledged more funding for local communities, framing these actions as part of a broader mission to reverse national decline.

"In 2026, the choices we've made will mean more people will begin to feel positive change in your bills, your communities and your health service," Starmer said. He added that his goal was to restore a "sense of hope" and a belief that the "promise of renewal can become a reality."

Challenges Amidst Optimism

This forward-looking message comes against a challenging political backdrop for Starmer, with his party's polling ratings described as rock-bottom. There is ongoing speculation that 2026 could be a defining year for his leadership, potentially even leading to his departure from Downing Street if public sentiment does not improve.

Acknowledging the scale of the task, the PM cautioned that renewal was "not an overnight job" and that the problems facing the country were "decades in the making." His New Year statement is clearly designed to convince the public that his government's plan is now translating into concrete, positive changes for everyday life, with the cost of living at the very heart of that offer.