Prime Minister Andy Burnham has acknowledged that the measures his government has introduced to ease the cost of living are insufficient on their own, while suggesting further action is being planned. Speaking to the BBC's Wake Up to Money programme, he said households would eventually benefit from what he described as "an accumulation of smaller things" that would "combine to take the pressure down" on family budgets.
Burnham said he was examining an overhaul of train fares alongside greater "more public control" over energy, water and housing, though he offered no specific timeline or mechanism for delivering these changes. Since taking office, he has already scrapped VAT on domestic energy bills and brought forward the planned ban on so-called subscription traps.
What has Burnham said about further support?
Asked directly whether his announcements had done enough for people struggling with living costs, the prime minister was candid about their limitations.
"I can accept criticism that this isn't enough, because I wouldn't say it's enough. But I take an approach to politics where I do what I can, when I can. Just take that little bit of pressure off and address an issue that you know needs addressing."
"It's not the end of the story," he added.
On the question of reversing decades-old privatisation, particularly of water companies in England and Wales sold off in the 1980s, Burnham was cautious about the scale of the challenge but did not rule out intervention.
"But very much, I'm looking at what can be done. Same with energy."
He also confirmed he wants to "remodel the rail fares" to deliver greater public benefit, following the return of rail operators to public ownership.
Why is his room for manoeuvre limited?
Burnham said he has instructed Chancellor John Healey to explore what further cost-of-living support the government can offer in the Budget scheduled for 28 October, and that Healey has told him this will be his "main focus". However, Healey has also signalled he intends to maintain "strong fiscal discipline", which will constrain how much money is available to spend.
This tension between ambition and affordability was flagged by a leading economic think tank, which recently warned that Healey would likely need to raise taxes or cut spending elsewhere to fund Burnham's commitments on both defence and the cost of living, as detailed in earlier reporting on the think tank's borrowing warning. Labour's manifesto committed to protecting working people from increases to income tax, VAT and National Insurance Contributions, a pledge Burnham says he intends to honour.
The prime minister is also likely to face pressure over business costs, after previous budgets under Rachel Reeves increased employer National Insurance contributions and the minimum wage. He acknowledged that the National Insurance rise had placed additional strain on businesses and said the government would look more broadly at business rates. Last month, he announced a 20% cut to business rates for pubs, social clubs and live music venues in England from April, describing it as a "first step" for the sector.
"I would like to bring down the cost of doing businesses. I want to make high streets more vibrant across the country. I know that cannot be done by simply wishing it."
He stopped short, however, of committing to further specific measures at this stage.
How does this fit with wider government cost-of-living policy?
Burnham's remarks come as he embarks on a nationwide tour during the parliamentary recess, a trip previously reported to include a likely stop in Port Talbot amid growing inflation concerns and separate controversy over prisoner early releases, as covered in earlier coverage of the tour's launch. His opponents have also questioned how his spending commitments will be funded; Conservative leader Kemi Badenoch previously accused him of governing as though he were still mayor of Greater Manchester, as noted in reporting on Badenoch's criticism.
Separately from Burnham's domestic policy announcements, the national Cost of Living Payment scheme that ran between 2022 and 2024 has formally ended, with the government confirming no further payments are planned under that programme, according to official government guidance. The final round of those payments was made between 6 February and 22 February 2024, per a report on benefit payment dates. In its place, the government has introduced a 2026 support package worth a total of £300, which combines several existing schemes including the Warm Home Discount, according to the official announcement.
Local authorities also continue to offer targeted assistance. In England this support is delivered through the Crisis and Resilience Fund, while Scotland and Wales operate equivalent schemes known as the Scottish Welfare Fund and the Discretionary Assistance Fund respectively, according to government guidance on local council help. This local support can cover essentials such as energy and water bills, food, other essential items and housing costs, and claimants do not need to be receiving benefits to qualify.
What happens next?
No further national Cost of Living Payments are scheduled, as the government has confirmed the earlier scheme will not be revived. Instead, attention now turns to the Budget on 28 October 2026, where Chancellor John Healey has said cost-of-living support will be his central focus, alongside continued distribution of help through councils under the Crisis and Resilience Fund framework.
Key Facts
- Burnham has scrapped VAT on domestic energy bills and brought forward the end of subscription traps since taking office.
- He wants greater public control over energy, water and housing, and to remodel rail fares following renationalisation.
- Chancellor John Healey will make cost-of-living support his "main focus" in the Budget on 28 October 2026.
- The national Cost of Living Payment scheme has ended, with no further rounds planned after payments concluded in February 2024.
- A 2026 support package worth £300, including the Warm Home Discount, has replaced the old national payment scheme.
