New government drive to cut cost of living

Since the start of 2026, the headlines have been dominated by international stories, but matters closer to home, like rising food and energy costs, haven’t gone away.

That’s why the government is going to great pains to talk up domestic matters like rolling out free breakfast clubs and scrapping the two-child benefit cap.

In fact, it’s hard to see a minister being interviewed without them talking about the cost of living, even when they’re being asked about issues like Greenland, China and Donald Trump.

As prime minister Sir Keir Starmer said a couple of weeks ago, geopolitics “is not something that happens somewhere else”.

“It shapes the cost of energy, the price of food, the security of jobs and the stability that families rely on to plan their lives,” he commented.

Cost of living is the biggest public concern right now

There’s a good reason why, even in a turbulent world, ministers want to steer the conversation back to household bills and other expenses.

A recent poll by YouGov found that the cost of living tops the list of public concerns (54%), ahead of issues like immigration and asylum (49%) and health and the NHS (43%).

So the government has to be seen to address this vital matter that affects each and every one of us.

And it’s also why they’re keen to present state visits and international trips through this lens.

“Tackling the cost of living today also means engagement beyond our borders,” Sir Keir said.

“It requires shaping the world around us, not retreating from it.

“It requires strong alliances, steady diplomacy, and rules that reduce uncertainty rather than amplify it.”

New cost-of-living champion appointed

At the same time, the government wants to make sure it’s engaging with the right people at home.

That’s why it’s just appointed Iceland boss Lord Richard Walker as its new cost-of-living champion.

He’ll be working closely with businesses at home, regulators and other organisations, as well as No. 10’s policy unit, come up with ideas, advice and tap into expertise across the board.

“I’ve taken on this role for one reason: to get real results for families on the cost of living,” Lord Walker said.

“Not to talk about it, but to help government focus on the things that genuinely make a difference.”

“I’ll be bringing real-world business experience and a sense of urgency to this work, looking at the everyday areas that eat into household budgets and where consumers get a rough deal. 

“Regulators are trying, but we need to be bolder in standing up for consumers and turning intent into action.”

What can I do if I'm struggling with rising costs?

If you're finding it hard to keep up with everyday expenses, there are practical steps you can take.

Check what benefits you can claim 

Make sure you know what financial support you can get, as you might be entitled to help without realising it.

Use our benefits calculator to see what help you could be eligible for.

Review your spending

Work out exactly how much money you’ve got coming in and where it’s going.

You can then prioritise your spending and see where you can make savings.

Check out our guide to how to create a budget to get started.

And give our budget planner a try - it’s free and easy to use.

Get help with your debts

If you’re struggling with debt, get in touch for confidential, practical and impartial debt advice.