What will a new prime minister mean for your money?

The ink had barely dried on Sir Keir Starmer’s resignation statement before commentators started furiously asking what his successor will do.

For many, the cost of living remains the pressing issue that needs to be addressed.

So the new prime minister will have to not only show they understand people’s fears and frustrations, but that they also have a plan to deal with the problem.

As Sebrina McCullough, external director at Money Wellness, says: "The cost-of-living crisis might not dominate the headlines in the way it once did.

“But it's still shaping how millions of people think about their finances. 

“For many households, the real question isn't who's in No. 10. 

“It's whether they feel better off than they do today.”

What about pensions?

Many will also be keeping a close eye on what happens with pensions, in particular the triple lock.

This guarantees that the state pension goes up every April in line with wages, inflation or 2.5% - whichever is highest.  

Andy Burnham, the hot favourite to replace Sir Keir Starmer as prime minister, has been a vocal supporter of keeping the triple lock.

So that will reassure those pensioners who rely on annual state pension increases to help keep pace with the rising cost of food, energy and other essentials. 

“With household budgets still under pressure, any commitment to protecting pension incomes is likely to be closely watched,” Sebrina says.

Will benefits be reformed?

Last year, the government tried to bring in cuts to disability benefits, but they were forced to back down following strong backbench opposition.

Nevertheless, it’s carried on pushing the case for reforming the welfare system, so we hope to get some clarity on this soon.

“Recent debates around welfare reform and winter fuel payments have caused confusion and concern for many households who depend on some form of support,” Sebrina comments.

“Whatever the policy direction, people want to know where they stand and whether they can rely on that support in the future.”

This matters as food, housing and household bills are far higher than they were just a few years ago, despite inflation figures going in the right direction.

So after several difficult years, families are still trying to rebuild their finances and get back on a firmer footing.

People want certainty

While political watchers might lap up the drama at No. 10, most of us simply want a sense of stability and security.

As Sebrina points out, people judge the economy not through speeches or policy papers, but through what we pay for food and energy and when we check our bank balance before payday.

“For many voters, the measure of success won't be what politicians promise, but whether they feel more financially secure than they do today,” she adds.

We’ll be keeping a close eye on what’s going on at Westminster so we can let you know what it means for you and your household.

In the meantime, if you’re struggling, don't hesitate to reach out and ask for help.
 
We can help you check that you're claiming all the benefits you're entitled to, provide debt advice and support you in creating a realistic budget that works for your circumstances.