Kate Devlin – The Independent Jan 2, 2026
The poorest households in Britain have become poorer while the rich have seen their disposable income rise under Labour, new figures show.
The amount the poorest households have left over after bills and essential spending has fallen by 2.1 per cent since Labour came to power in July 2024, data from Retail Economics shows. But the most affluent households have seen their discretionary incomes rise by 10.3 per cent.
The figures come as a blow to Sir Keir Starmer as he prepares to put tackling the cost of living at the centre of his new year message to voters and his own MPs.
The findings come as Sir Keir has pledged to “wage all-out war” on the soaring cost of living.
With Labour still trailing Nigel Farage’s Reform UK in the polls and set to suffer heavy losses in May’s local elections, the PM is expected to highlight measures such as recent cuts to energy costs, due to take effect in April, and the abolition of the controversial two-child benefit cap at an event on Monday as ways the party is helping voters.
In a new year message in the Daily Mirror, he wrote: “Late last year I was handed a note by a Scottish girl, aged just nine years old. She had written to me to explain all the ways that poverty can impact children. The hunger from missing breakfast. The cold of unheated rooms. The embarrassment of a worn-through school uniform. The tiredness and exhaustion that comes with all of it.
“To be honest, it was moving to see such perception from a child. And shocking to think that the vast majority of children growing up in poverty in Britain today come from working families.”
He added: “That’s why this year we will lift over half a million children out of poverty. By scrapping the two-child limit on child benefit. Expanding free school meals to half a million hungry children. And by waging an all-out war on the cost of living.”
In a new year video, he also predicted that the UK would “turn a corner” in 2026 and that people would begin to feel “a sense of hope” in the coming months despite a slew of negative economic headlines in recent months.
On the latest figures, Richard Tice, the deputy leader of Reform, told the Telegraph Labour had “lost control” over the cost of living.
Graham Stringer, the Labour MP for Blackley and Middleton South, said: “It’s disappointing, but it’s not surprising given that our energy policy subsidises the affluent middle class via subsidies to expensive cars, to heat pumps, to other things, and increases the size of the bills for poorer people.”
The new figures from Retail Economics, an independent economic consultancy, look at discretionary income, which is how much money families have left after spending on essentials.
Nicholas Found, from the group, said: “The reality is that lower-income families are still grappling with the legacy of surging prices, with finances playing catch-up as the cost of everyday products is significantly higher than it was four years ago.”
The figures include changes in tax and some bills which are not captured by official figures from the Office for National Statistics.

GET HIM OUT”
Keir Starmer urged to dissolve Parliament as thousands sign petition demanding snap election to be rid of him
Story by Jack Walters •
Keir Starmer has been urged to dissolve Parliament after a petition demanding an immediate general election
received more than 65,000 signatures.
21 million signatures to stop the migrant swamping and start sending them back was ignored
You cant expect the government to care about this as most are migrants themselves
The petition, which is the third launched calling for a snap poll since Labour came to power in July 2024,
is yet to receive a response from the Government.festive period surge saw the petition total signatures jump from less than
20,000 to 60,000 between Christmas and New Year’s Day.
The petition will run until June 10, making it incredibly likely it will surpass the 100,000 signatures needed to be considered for debate in Westminster Hall.
in the petition’s description, creator Robert JF Barners wrote: “On July 4, 2024, Keir Starmer was elected as Prime Minister.
but has turned out to be a durty shit legged arsole wanking bastard fucking Jewboy
the bill at christmas for the migrants was £40 billion and rising
they should not be here
politicians should have learnt to keep them out after the awful mistake of letting welsh people come in to england
all this damn migrant swamping has ruined the UK and ireland
people sat farage will send them all back
h but i dont believe him
‘The Book of the Law’ is the new white Bible. The sent one will lead us.
666
Labour councils that boycott Israeli goods face legal action
Story by Daniel Martin
Labour councils face legal action unless they stop boycotting Israeli businesses, Steve Reed has warned.
Several local authorities have voted to snub firms that are “complicit in Israeli war crimes”, supply arms to Israel or benefit from
the country’s occupation of Palestinian territory.
It does not matter if the government supports israeli terrorism and murder
the peoples Boycott programme will still be active, and is actually growing
The Communities Secretary has told them they risk being sued by suppliers who lose money, and that they could be required to pay substantial damages.
He said: “Councils should stay out of foreign conflicts and get on with the job of delivering local services.”
The Ministry of Housing, Communities and Local Government said it had published guidance prohibiting boycotts against Israel firms or firms that trade with Israel. It said these companies would be able to sue councils under the Procurement Act 2023.
Mr Reed issued the warning amid fears of heightened anti-jewish ness over the mass murders which have prompted two police forces to say they will arrest activists calling for “intifada” against the Jews.
Councils throughout the country, including Newcastle, Oxford and Islington, have passed motions in support of the “boycott, divestment and sanctions” (BDS) movement.ir James Cleverly, the shadow communities secretary, ( another dirty jew ) has accused the Government of failing to tackle anti-Semitism at a local level by refusing to ban councils from boycotts.
When you look at what israel is doing anyone who is not an anti semite has no brain
This month, Labour-run Newcastle council passed a motion committing to a thorough review of its financial ties with firms “complicit with the genocide and/or illegal occupation” in Gaza.
Oxford council has also voted for a motion in support of the BDS movement, saying the Labour-run authority should boycott companies complicit in Israeli war crimes. Its proposer said the move would “end local complicity in colonial genocide”.
The whole country is in support of palestine for gods sake
Labour-run Cumberland council said it would withdraw its investments from companies which supply arms to Israel. Mark Fryer, the council leader, said the decision followed “disproportionate starvation and mass murders” against the people of Gaza.
there is just one problem
the government importing in of migrants
this must be stopped