Reeves unveils plan to save households £3,000 a year, by staff reporter

Rachel Reeves unveils Labour’s Better Off Plan to cut household bills by up to £3,000 a year over the next decade.

Speaking ahead of the Autumn Statement, Reeves accused the Conservatives of having presided over “thirteen years of economic failure that has left working people worse off, with higher taxes, higher mortgage payments and prices still rising in the shops.”

The Shadow Chancellor pledged that a future Labour government would help families with the cost of living by cutting energy, petrol and mortgage bills.

Over the next decade, Labour’s Better Off Plan would save families:

£500 a year by insulating homes to make them more energy efficient.

£900 a year by building cheaper, cleaner power across the country through the creation of Great British Energy, a new, publicly-owned clean generation company.

£400 a year by cracking down on unfair car insurance practices like subscription traps and unfair postcode pricing.

£1,200 a year on mortgage bills by building 1.5 million homes over a Parliament to keep housing affordable.

The Plan would sit alongside Reeves’ pledge to bring economic stability back to the UK, including a new set of fiscal rules that would apply to every decision taken by a future Labour government.

The unveiling of the plan comes as new figures from the Labour Party reveals the scale of the cost-of-living crisis hitting families. Analysis of data from the Office for National Statistics and the Office of Budget Responsibility reveals that disposable income is forecast to rise by just £42 between 2010 and 2025. Under the Labour Government it rose by more than 40%, or £11,000 per person.

Keir Starmer and Rachel Reeves have pledged to make growing the economy a priority for a future Labour Government. Earlier this year, the leadership unveiled Labour’s mission to secure the highest sustained growth in the G7 – with good jobs and productivity growth in every part of the country making everyone, not just a few, better off.

Rachel Reeves MP, Labour’s Shadow Chancellor, said: “The economy is not working for working people. After thirteen years of economic failure, families are worse off, with higher taxes, higher mortgage payments and prices still rising in the shops.

“The 25 Tory tax rises since 2019 are the clearest sign of the Conservatives’ economic failure, with households paying £4,000 more in tax each year. The Conservatives have become the party of high tax because they are party of low growth.

“Under Keir Starmer’s leadership, the Labour Party has changed and is now the party of economic responsibility. A Labour Government’s priority would be growing our economy so we can boost wages, bring down bills and make working people in all parts of the country better off.”