Britons are facing a harder life going into Labour’s second year. Why?
When Labour swept into power with promises of change and a fairer economy, many voters hoped for real improvements in their day-to-day lives.
But as the government prepares to enter its second year, the stark reality is setting in: Britons are feeling the financial squeeze more than ever.
Despite rhetoric about economic growth and stability, the cost of living crisis is deepening, and households are worse off than they were under the previous administration – and that is a harsh criticism.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
Starting in April, households will face increases in nearly every major living expense; council tax, energy bills, water rates, broadband, mobile phone contracts, TV licence fees, and vehicle excise duty are all set to rise.
These increases, amounting to hundreds of pounds per household, will take a larger chunk out of incomes that are barely keeping pace with inflation.
Take energy bills: the price cap will rise by 6.4 per cent, adding around £111 per year to the average bill. Council tax hikes of approximately five per cent will see Band D households paying an extra £109. Water bills are expected to rise by £123 annually. These aren’t marginal increases—they represent a serious financial strain on millions of people.
Labour has not explicitly raised income tax, but the freezing of tax thresholds effectively means people are paying more, in what is being described as “taxation through the back door”.
As wages increase to keep up with inflation, more workers are being dragged into higher tax brackets, a phenomenon known as ‘fiscal drag.’
This stealth tax increase is leaving many earners with lower real incomes, despite government claims of economic improvement.
For low-income families and those on benefits, the situation is just as dire. While Universal Credit and disability benefits will see modest increases, these are far outstripped by rising costs. The most vulnerable will feel the squeeze the hardest.
People receiving the lowest rate of Universal Credit (UC) will face the hardest impact of the upcoming increases in essential household bills, including water, energy, broadband, phone services, and the TV licence fee.
As of April 2025, the standard monthly allowance for a single individual under 25 on Universal Credit is £292.11, totalling around £3,505 annually. For those aged 25 and over, the monthly allowance is £368.74, or about £4,425 per year.
Anticipated annual increases in essential bills include a £111 annual increase to the average household’s energy costs; an average rise of £123 per year for water services in England and Wales; price hikes of up to 6.4 per cent on broadband and mobile services, potentially adding approximately £27.19 annually for broadband and £24.23 for mobile services; and the TV licence fee will increase by £5, from £169.50 to £174.50.
Bearing in mind their circumstances, these increases result in an additional annual cost of approximately £290.42 for individuals on the lowest rate of Universal Credit. This represents a considerable portion of their annual income, exacerbating financial challenges.
To manage these increased expenses, people are going to have to consider reassessing monthly budgets to prioritize essential expenditures; exploring eligibility for additional support, such as the Warm Home Discount Scheme for energy bills; comparing and potentially switching to more affordable broadband and mobile service providers, and evaluating the necessity of a TV licence based on viewing habits, as it is only required for watching live TV or BBC iPlayer.
By proactively addressing these upcoming cost increases, people on Universal Credit can better navigate the financial challenges posed by rising household bills.
Labour has touted the rise in the National Living Wage as a sign of progress. But a 6.7 per cent wage increase won’t be enough to offset higher bills and stealth taxation.
Any gains in earnings are being eroded before they can make a real difference in people’s pockets.
Even middle-income earners are finding that their pay rises are being swallowed up by increasing expenses, leaving little room for discretionary spending or savings.
This is the reality of Labour’s economic policies. Despite promises of an economy that “works for the many,” the reality is that Labour’s policies are leading to a higher tax burden and greater financial stress for working people.
The government may argue that these changes are necessary for investment in public services, but when families are forced to tighten their belts even further, it is hard to see the benefit.
Britain is not just in a period of economic stagnation—it’s in a phase where many are actively getting poorer.
With the government’s tax policies and cost-of-living increases hitting at the same time, Labour’s second year in power looks set to be one of growing public discontent.
Voters wanted change, but few of us expected it to mean being worse off than before.
As the reality of these economic pressures sinks in, the question remains: can Labour turn things around before public patience wears thin?
If not, then promises of a better future may end up as just another broken political pledge.
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Britons are facing a harder life going into Labour’s second year. Why?
Britons are facing a harder life going into Labour’s second year. Why?
When Labour swept into power with promises of change and a fairer economy, many voters hoped for real improvements in their day-to-day lives.
But as the government prepares to enter its second year, the stark reality is setting in: Britons are feeling the financial squeeze more than ever.
Despite rhetoric about economic growth and stability, the cost of living crisis is deepening, and households are worse off than they were under the previous administration – and that is a harsh criticism.
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
Starting in April, households will face increases in nearly every major living expense; council tax, energy bills, water rates, broadband, mobile phone contracts, TV licence fees, and vehicle excise duty are all set to rise.
These increases, amounting to hundreds of pounds per household, will take a larger chunk out of incomes that are barely keeping pace with inflation.
Take energy bills: the price cap will rise by 6.4 per cent, adding around £111 per year to the average bill. Council tax hikes of approximately five per cent will see Band D households paying an extra £109. Water bills are expected to rise by £123 annually. These aren’t marginal increases—they represent a serious financial strain on millions of people.
Labour has not explicitly raised income tax, but the freezing of tax thresholds effectively means people are paying more, in what is being described as “taxation through the back door”.
As wages increase to keep up with inflation, more workers are being dragged into higher tax brackets, a phenomenon known as ‘fiscal drag.’
This stealth tax increase is leaving many earners with lower real incomes, despite government claims of economic improvement.
For low-income families and those on benefits, the situation is just as dire. While Universal Credit and disability benefits will see modest increases, these are far outstripped by rising costs. The most vulnerable will feel the squeeze the hardest.
People receiving the lowest rate of Universal Credit (UC) will face the hardest impact of the upcoming increases in essential household bills, including water, energy, broadband, phone services, and the TV licence fee.
As of April 2025, the standard monthly allowance for a single individual under 25 on Universal Credit is £292.11, totalling around £3,505 annually. For those aged 25 and over, the monthly allowance is £368.74, or about £4,425 per year.
Anticipated annual increases in essential bills include a £111 annual increase to the average household’s energy costs; an average rise of £123 per year for water services in England and Wales; price hikes of up to 6.4 per cent on broadband and mobile services, potentially adding approximately £27.19 annually for broadband and £24.23 for mobile services; and the TV licence fee will increase by £5, from £169.50 to £174.50.
Bearing in mind their circumstances, these increases result in an additional annual cost of approximately £290.42 for individuals on the lowest rate of Universal Credit. This represents a considerable portion of their annual income, exacerbating financial challenges.
To manage these increased expenses, people are going to have to consider reassessing monthly budgets to prioritize essential expenditures; exploring eligibility for additional support, such as the Warm Home Discount Scheme for energy bills; comparing and potentially switching to more affordable broadband and mobile service providers, and evaluating the necessity of a TV licence based on viewing habits, as it is only required for watching live TV or BBC iPlayer.
By proactively addressing these upcoming cost increases, people on Universal Credit can better navigate the financial challenges posed by rising household bills.
Labour has touted the rise in the National Living Wage as a sign of progress. But a 6.7 per cent wage increase won’t be enough to offset higher bills and stealth taxation.
Any gains in earnings are being eroded before they can make a real difference in people’s pockets.
Even middle-income earners are finding that their pay rises are being swallowed up by increasing expenses, leaving little room for discretionary spending or savings.
This is the reality of Labour’s economic policies. Despite promises of an economy that “works for the many,” the reality is that Labour’s policies are leading to a higher tax burden and greater financial stress for working people.
The government may argue that these changes are necessary for investment in public services, but when families are forced to tighten their belts even further, it is hard to see the benefit.
Britain is not just in a period of economic stagnation—it’s in a phase where many are actively getting poorer.
With the government’s tax policies and cost-of-living increases hitting at the same time, Labour’s second year in power looks set to be one of growing public discontent.
Voters wanted change, but few of us expected it to mean being worse off than before.
As the reality of these economic pressures sinks in, the question remains: can Labour turn things around before public patience wears thin?
If not, then promises of a better future may end up as just another broken political pledge.
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Be among the first to know what’s going on! Here are the ways to manage it:
1) Register with us by clicking on ‘Subscribe’ (bottom right of the home page). You can then receive notifications of every new article that is posted here.
2) Follow VP on Twitter @VoxPolitical
3) Like the Facebook page at https://www.facebook.com/VoxPolitical/
Join the Vox Political Facebook page.
4) You could even make Vox Political your homepage at http://voxpoliticalonline.com
5) Follow Vox Political writer Mike Sivier on BlueSky
6) Join the MeWe page at https://mewe.com/p-front/voxpolitical
7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Buy Vox Political books so we can continue
fighting for the facts.
Cruel Britannia is available
in either print or eBook format here:
The Livingstone Presumption is available
in either print or eBook format here:
Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
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