Keir Starmer pledged to cut £150 off energy bills – snatched it back | Personal Finance | Finance

In February, Keir Starmer claimed that households would benefit from cheaper energy bills this spring thanks to government measures. He said it was “putting money into workers’ pockets” by taking a big step forward in tackling the cost of living crisis. This was a huge deal then and seems even more fraudulent today. It definitely doesn’t put money in the pockets of working people. He takes it off. Twice. This is a total scam and this week brings the real pain.

Starmer’s office said the bills would fall from April, and they did. But not as much as £150. In practice the bills fell by just £117, so his boast instantly fell short. And it is wrong on two other counts. Firstly, some of this decline was due to falling wholesale energy prices, something the UK government does not control. Secondly, the £150 saving wasn’t really a saving at all. This money was paid by the same working people the Prime Minister claims to be helping.

Starmer financed the commitment by shifting government taxes from energy bills to general taxation. This leads to another claim that doesn’t stack up.

Starmer said the policy was funded by asking “the rich” to pay their fair share. What this means is that fat cats are footing the bill for everyone else. This is absolutely not true. A more accurate definition of “rich” is anyone who pays income taxes. This means approximately 38 million people. They are the ones who pay the bill.

The misuse of language is surprising. Money is taken from working people and then given back in a different form to be presented as savings. But this is definitely not a savings. And the situation is getting worse.

The new tax year started yesterday. Many costs are increasing during the so-called “Scary April” period, but one important threshold remains unchanged. Personal allowance has been frozen at £12,570. Higher rate tax bands have also been frozen. They’ll remain frozen until 2031, thanks to Chancellor Rachel Reeves.

Taxpayers are facing an average bill of up to £220 this year alone as more of their income is transferred to higher tax brackets, according to new research by the Liberal Democrats. This will more than wipe out Starmer’s £150 savings (which wasn’t a savings anyway).

Many of these are the “working people” Starmer claims to be helping. Many are retirees who have made payments throughout their lives. Very few people will consider themselves “rich”. Especially now.

Starmer also promised to “end the era of high bills once and for all”. This claim is not valid either. Our tax bills are the highest they have ever been and will continue to rise across Parliament. While Starmer picks your pocket with one hand, Reeves picks with the other.

This is the truth. A so-called saving of £150, which isn’t really a saving at all, is more than likely to be wiped out by a hidden tax increase they hope you won’t notice. Starmer and Reeves think they’re smart, but they’re not fooling anyone. Voters will take their revenge in the elections to be held next month.