Boost for millions of Brits as Starmer announces measures to ease cost of living amid Iran war

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A raft of new measures will come into force, including a rise in both the National Living and Minimum Wage earnings, as well as a reduction in bills for millions across the UK.

The announcements come after Sir Keir Starmer met with fuel industry bosses at Downing Street on Monday and held a Cobra meeting on Tuesday in response to the escalating situation in the Middle East.

The conflict is pushing up mortgage rates, fuel prices and energy bills, and is likely to soon impact the cost of food.

In an exclusive comment piece for LBC today, the Chancellor said that she was taking steps to ensure ‘working people aren’t left carrying the cost’.

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The National Living wage will increase to £12.71 – a £900 boost for 2.4 million workers.

The National Minimum Wage will also rise to £10.85 – a £1,500 boost for over 200,000 young employees.

The Government says it will cut energy bills by an average of £117 a year for millions across the UK, which will be locked in until the end of June to ease the burden.

The Crisis & Resilience Fund will officially be launched to help vulnerable households with heating oil, and a freeze on prescription prices will be introduced, which will stop Brits paying more than £10 on medicines.

The Prime Minister said: "In an uncertain and volatile world, it is my Government’s duty to protect the British people at home and abroad.

"I know the public are concerned about the conflict in Iran and what it means for them and their families. I want to reassure them that they have a Government on their side, working with allies on de-escalation and bearing down on the cost of living.

"Today, millions of people up and down the country will see energy bills go down by £117, wages go up for the lowest paid, and more support will be available for people who need it most because of the decisions this Government has taken."

While energy bills are falling – for the time being at least – hikes to council tax, water, broadband and mobile phone costs are threatening to stretch many households to breaking point, charities have said.

The price most households pay for energy under regulator Ofgem's price cap will fall by seven per cent, or £117 a year, to £1,641 from Wednesday, driven by the Government’s promise to cut bills by an average of £150 by removing green subsidies.

But there are mounting concerns about the amount energy bills could rise by from July as a result of the Middle East conflict, with the latest predictions suggesting this could be £300 a year.

It comes after Donald Trump once again hit out at the UK for not helping the US while insisting it was time for the UK to police the Strait of Hormuz itself.

He wrote on Truth Social: "All of those countries that can’t get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to get involved in the decapitation of Iran, I have a suggestion for you.

"Number 1, buy from the U.S., we have plenty, and Number 2, build up some delayed courage, go to the Strait, and just TAKE IT.

"You’ll have to start learning how to fight for yourself, the U.S.A. won’t be there to help you anymore, just like you weren’t there for us."

His words were echoed by US Secretary of War Pete Hegseth, who said the Strait was not just the responsibility of the US, saying, "there’s supposed to be a big bad Royal Navy".

The waterway has become the core talking point of the war after it was partially blocked by Tehran following attacks by the US and Israel on 28 February.

The closure has rocketed the price of oil and gas, and prompted UK inflation to flatline at three per cent last month.

Addressing the Strait, Starmer said: "We must go further to bear down on costs, and that means pushing for de-escalation in the Middle East and a re-opening of the Strait of Hormuz.

"That is the best way we can bring down the cost of living for families and that is my focus."

Estimated price rises at the pump since the conflict in the Middle East began on February 28 have led to motorists paying an additional £544 million for petrol and diesel, motoring charity the RAC Foundation revealed earlier.

Oil prices have soared in response to Iran’s stranglehold on tankers passing through the Strait, with the average pump price of a litre of unleaded petrol in the UK standing at 148.8p on Monday.

This rise of 4.6p week on week and a jump of 16.6p, or 13 per cent since March 2, according to new figures published by the Department for Energy Security & Net Zero.

The Isle of Man ran out of diesel on Monday, and diesel rationing was put in place at multiple petrol stations across the island.

Drivers across the self-governing Crown Dependency reported that all garages have run out of diesel.