Labour MPs massively out of step with public on cost of living, survey reveals

A new poll has found the government is at odds with the British public over its work to tackle the rising cost of living, with campaigners warning the issue is sapping Labour’s popularity.

In a poll of 110 members commissioned by YouGov and the Cost of Living Action (COLA) group, the vast majority (82 per cent) of Labor MPs think the government is doing well on covering living costs.

This stands in stark contrast to British public opinion; 80 percent think the government is doing poorly in tackling rising costs.

Sir Keir Starmer has said tackling living costs is one of the government’s key priorities in 2026, vowing to continue focusing on the issue amid the global economic fallout from the US-Iran war.

The conflict almost threatened to undo many of the policies Labor had introduced to tackle affordability; Sudden increases in oil prices have had a knock-on effect on the cost of basic needs such as energy, fuel and even food.

According to YouGov data, the economy has been recorded as the most important issue of the British public since the end of last year, and 55 percent of them were in the top three in May. This compares with immigration and asylum claims of 49 percent.

Labor saw record low support in last week’s local elections, which experts say shows serious dissatisfaction with the government’s approach.

The party lost the most seats across England in a single election in recorded history and also lost control of the Welsh Senedd for the first time since its formation in 1999.

Conor O’Shea, co-ordinator of the Cost of Living Action coalition, said it showed the “stark political reality” and that “the public expects more on the cost of living”.

“MPs clearly know this is a critical issue, but their perception of how effectively the government is tackling this problem is largely at odds with public opinion,” he added.

“The real problem underlying this week’s renewed Westminster psychodrama is the failure to address the cost of living. But the prime minister had nothing concrete to offer on the cost of living issue in his speech on Monday, and the King’s speech fell short of providing hope or detail.”

The campaign group’s research also found that more than four-fifths (80 per cent) of Labor MPs support a windfall tax on energy companies, and two-thirds (66 per cent) support measures to subsidize everyone’s energy bills, with targeted support for those with higher needs.

The researchers found that this view is generally in line with and slightly stronger than public opinion, with 69 percent and 60 percent supporting the respective policies.

In February, Ofgem set the cap for April-June at £1,641; This represents an average reduction of £117 and is broadly in line with Labour’s pledge to cut energy bills by £150.

This means that bills are effectively protected until July. A forecast from Cornwall Insight last week suggested this could add up to as much as £202 for the average household.

Mr O’Shea commented: “A serious response to the energy crisis is an important first step in tackling the cost of living and unites Labor seats and broad sections of the public in support.”

Chancellor Rachel Reeves has promised targeted energy bill support for households in the future based on household income, but has fallen short of universal measures.

In April, the government also announced a “five-point plan” to tackle the cost of living in the face of pressures created by the Iran crisis. These included a £117 cut in Ofgem’s energy price cap from April and investment in energy security to make the UK less susceptible to market fluctuations.

A Treasury spokesman said: “We have the right economic plan to deal with price rises caused by war in the Middle East. It’s not our war, we’re not participating in it, but we’re not immune to its effects, so we’re supporting families with living costs in a responsible way.”

“This includes cutting household energy bills by £117, increasing the national living wage to provide a £900 boost to millions of workers and freezing rail fares for the first time in three decades.”