PM to highlight energy bill and interest rate cuts, plus end to two-child benefit cap, and to invite his MPs to Chequers

Keir Starmer will attempt to rescue his relationship with disillusioned voters and his own fractious MPs in a new year push to reduce the cost of living.

The prime minister will give a speech in the coming days focusing on how his government is bringing down living costs, highlighting recent cuts to energy bills and interest rates and the end of the two-child benefit cap.

He will reinforce the message with a series of new year drinks receptions for Labour MPs at Chequers as he hopes to dispel angst about local and devolved elections in 2026, at which the party is expecting heavy losses.

In his new year message, the prime minister said voters would begin to see their lives improving in 2026 in what his chief adviser, Morgan McSweeney, has called “the year of proof”.