Keir Starmer has set out how the government is delivering real progress now while rebuilding Britain’s foundations for the future. But does anyone believe him?
PM says “our plan is working” as government delivers results on costs, migration control and growth
Net migration down sharply to its lowest since 2021, inflation down faster than expected to 2.8%, and UK the fastest-growing economy in the G7 in the first quarter of the year
“Great British Summer Savings” to help families afford more time together this summer
The Prime Minister has set out how the government is delivering real progress now while rebuilding Britain’s foundations for the future.
Recent figures show the plan is working:
Net migration has fallen by almost three quarters to its lowest level since 2021.
Inflation has dropped faster than expected to 2.8%.
The UK is the fastest growing economy in the G7, with growth beating expectations at 0.6% in the first quarter.
Together, this progress is strengthening the UK’s resilience in an uncertain world – easing immediate pressures on families while putting the economy on a more stable footing for the long term.
That progress is being felt more widely across the country, as the government rebuilds the public services working people rely on:
Homicide is at its lowest levels since the 1970s, knife crime is down by 10%, and we have taken more than 63,000 knives off our streets.
NHS waiting lists are at their lowest level for three and a half years, with the largest single month performance improvement in 17 years.
There are 4,000 additional teachers across secondary schools, special schools and further education.
With families still feeling the squeeze – and global instability continuing to drive uncertainty – the government is going further to help households with the cost of living, so people can enjoy the everyday moments that make life better.
Prime Minister Keir Starmer said: “We now have the fastest growing economy in the G7, net migration has fallen, and NHS waiting lists are at their lowest level in three and a half years.
“Our plan is working. And as summer begins, we are going further to bring down the cost of living and make life easier for families, so they have more room to enjoy it.
“This government will keep pushing forward to deliver the change the country voted for.”
Building on that progress, the Prime Minister and Chancellor have acted to ease pressure on families, announcing further cost of living support including VAT cuts on hospitality, free bus travel for children aged 5 to 15 in England throughout August, and targeted tariff reductions to bring down the price of everyday essentials. Together, these measures will help families go further while supporting high streets and local businesses.
That action is being underpinned by growing economic strength. GDP has increased every quarter since 2024, forecasts have been exceeded in the first quarter of this year, and the IMF has upgraded the UK’s growth outlook – all clear signs that economic stability is returning and resilience is being rebuilt.
The government is also driving that resilience by backing businesses to invest and expand, including a landmark trade deal with the Gulf Cooperation Council – the first such deal by a G7 country – and new legislation to give small firms stronger protection from late payments and the certainty they need to grow.
This comes alongside action to make work pay and back working people – with the National Living Wage increased, 30 hours of funded childcare delivering savings of up to £8,000 per child each year, and stronger rights for 11 million renters through the Renters’ Rights Act.
At the same time, the government is restoring control and strengthening security – closing more than half of asylum hotels and taking further action to tackle the criminality that undermines communities.
Alongside this, the government is rewiring the state to support delivery, with a delivery team in every department, led by a senior civil servant, and performance incentives strengthened so that senior leaders are rewarded for driving results.
This week, the government confirmed senior civil servants’ pay rises will be directly linked to performance to reward the doers, not the talkers. As a package, this is the biggest change to senior civil pay in decades.
This is a government taking a different path – not returning to a status quo that failed working people, but building a stronger, fairer Britain.
From lowering costs and backing families to restoring control and driving growth, the government is delivering the security and stability people expect – and laying the foundations for long-term change.
SECURITY? Peter Mandelson scandal
STABILITY? Internal civil war forcing unneccesary by-election
Patients, employers and GPs are set to benefit from an overhaul of the broken fit note system following the launch of several pilots by the UK Government to reform the system for workers who fall ill
Radical overhaul of broken fit note system to be piloted so it works for patients, employers, and healthcare professionals.
Trials to be delivered through selected NHS WorkWell sites and major employers.
Comes as new report shows just 29% of primary care staff see issuing fit notes as a good use of GP time.
Patients, employers and GPs are set to benefit from an overhaul of the broken fit note system following the launch of several pilots by the Government today to reform the system for workers who fall ill.
The current system sees some 11 million fit notes issued every year, with more than nine in ten declaring the person ‘not fit for work’.
Four pilots, in different areas in England, will look at the best way to end this tick-box exercise which does not offer any support or guidance and replace it with personalised ‘stay in work’ and ‘return to work’ plans for workers who fall ill.
The pilots will cover up to 100,000 appointments and last up to a year, with continuous testing, in order to narrow down the most effective approach to tackling the inherited steep increase in number of fit notes issued.
Patients will be offered either an initial fit note from a GP and then referred to community health workers – or go through the whole process without an initial fit note from a GP, and will instead be supported by a separate service staffed by clinical and non-clinical practitioners.
They will provide a range of work and health support, including three-way conversations between patients, employers, and trained professionals – covering reasonable adjustments and keeping people connected to their workplace from the first day of absence, helping more people to stay in work with support.
It is the first step in the Government’s ambition for radical fit note reform – with pilot findings due to be shaped by patients, healthcare staff, and employers – before the Government brings forward legislation to further reform the ‘broken system’.
Work and Pensions Secretary Pat McFadden, said: “Fit notes are too often a dead end – a piece of paper that tells people they can’t work but does nothing to help them get better.
“We’re changing that. By bringing employers, the NHS, and patients together we can help people recover faster, stay connected to their jobs, and get the economy firing on all cylinders.
“That’s what these pilots are about, and that’s what this Government is committed to – fixing what is broken.”
The launch comes as the Government publishes the Fit Note Call for Evidence which shows just three in 10 Healthcare Professionals in Primary Care say fit notes are a good use of GPs time, while six in 10 employers think the current process is ineffective at supporting their employees’ work and health needs.
Trials of a new approach was recommended by the former John Lewis chairman Sir Charlie Mayfield in his landmark Keep Britain Working Review into economic inactivity, which noted that the fit note system is “not working as intended” and had become a barrier to contact with employers.
Minister of State for Care Stephen Kinnock said: “Ever since I was appointed Minister of State for Care in July 2024, NHS staff have been telling me that the current fit note system isn’t working – not for patients, and not for the clinicians who sign them off.
“These pilots mark the beginning of the end for that broken system, giving people personalised support to get back into work and freeing up GPs from unnecessary admin so they can focus on what they do best: caring for their patients.
“This is what our 10 Year Health Plan is all about – earlier support, from the right people, in the right place.”
From July, the NHS will test new approaches through four existing WorkWell sites, backed by £3 million in the first year. The areas will test the following models:
Birmingham and Solihull – GPs issue the first fit note where needed, with all patients referred to a new support service led primarily by non-clinical staff, including social prescribers and work and health coaches
Coventry and Warwickshire – GPs issue the first fit note, with patients able to be referred to a support service made up of both clinical and non-clinical staff
Cornwall and the Isles of Scilly – GPs refer patients directly to a non-clinical support service, without issuing a fit note
Lancashire and South Cumbria – GPs refer patients to a support service made up of both clinical and non-clinical staff, without issuing a fit note.
BMA’s Practice Business policy lead for GPs committee England Dr Clare Bannon said: The BMA has contributed to the design of these pilots with DWP to overhaul the fit note system as we feel the current system is not working for GPs or patients.
“We welcome the opportunity to test how different models work and ensure the new process reduces unnecessary appointments for GPs, but most importantly provides support to patients.
“We will continue to input into the pilots to ensure they have appropriate occupational health support and do not inadvertently increase pressure on general practice or affect patient care. While we are supportive of this pilot, it must be underpinned by appropriate training, clinical oversight and clear governance.”
Professor Victoria Tzortziou Brown, President of the Royal College of GPs, said: “GPs take our responsibility to appropriately issue fit notes seriously, but the current system can involve significant administrative work that takes time away from patient care.
“We are open to exploring evidence-based reforms that could help improve outcomes for patients. However, any reform of the fit note process must put the health and wellbeing of patients first, be fully resourced and avoid creating additional workload for general practice.
“As such we look forward to seeing a comprehensive evaluation of this pilot.”
The Government is also confirming local funding allocations for WorkWell – the proven health-and-employment service through which the NHS-based fit note pilots will be delivered – as the programme expands nationally to support up to 250,000 people with a disability or health condition to get into or stay in work.
WorkWell is a local, health-led service connecting NHS, council and community support to keep people in work and help them return quickly if they don’t.
It comes as part of the Government’s wider £3.5 billion employment support package which meets sick and disabled people where they are, and builds on recent changes including the right for people on benefits to try work without fear of immediate reassessment, and the redeployment of 1,000 Pathways to Work advisers who are supporting those left behind by the previous Government.
Those who need time off to recover will still get it, with the Government’s Statutory Sick Pay reforms meaning employees receive support from day one of sickness absence, putting an extra £400 million a year into people’s pockets.
Alongside the NHS pilots, Keep Britain Working Vanguard businesses – including EDF Energy – will work out how employers can play a practical role in preventing absence where possible, and supporting safe, swift returns when it does occur.
Jacob Lant, Chief Executive of National Voices, said: “The current tick-box system for fit notes isn’t working for anyone, particularly patients. It makes people who are unwell jump through unnecessary admin hoops, and yet the process rarely offers people the support they need to get well and manage their conditions long-term.
The Department for Work and Pensions is absolutely right to test out new ways of supporting those who are signed off, and it is vital that patients are fully involved in that testing process, able to feed back over what works and what doesn’t. This is the only way to reliably avoid unintended consequences and create a system that actually helps both those who can’t work and those who would be able to with the appropriate support.”
“Ultimately the goal has to be about focusing on improving people’s health and getting them well, this is the hallmark of a compassionate state. In the end, investing in this approach will also pay dividends in terms of more people feeling able to work and being able to enjoy all the positives that come as a result.”
Nottingham GP Dr Sanjoy Kumar said: “I am really pleased the government is looking seriously at new approaches to fit notes, a change which is urgently needed.
“As a GP for over 25 years, I know how much of our clinical time is taken up with issuing these, which for many patients is not the right approach.”
Dr Steve Taylor GP Co-Lead Doctors Association UK said: “The Doctors Association UK has been involved in discussions over the past few months with the Department of Work and Pensions around Fit Note reform.
“These discussions were broad and included many groups: GPs, employers, patients and occupational health. We agree that the current system of fit-notes isn’t working well for patients, GPs and employers. It often lacks the nuance to deal with specific work situations and reasons that people have for not being able to work their full or part of their role.
“We hope these pilots will give the opportunity to explore a different way for people to engage with the periods of ill health and ways to make work more accessible and achievable. This recognises that GPs aren’t always best equipped to understand the options for work and we hope that active engagement between patients, GPs, employers and this new service will provide a better experience for everyone.
“It is important that no one is forced to work who cannot, but it is also important that those who can, should be encouraged and given options to work. This could be a great improvement and we look forward to seeing the outcomes from these 4 pilots.”
Chief Policy & Campaigns Officer John Foster at Confederation of British Industry said: “The fit note system is broken and fails employers, workers, and the economy. Business welcomes these pilots. They are an important step towards building a better system.
“Employers have increased their investment in supporting employee health and wellbeing and hope that these pilots will direct efforts to interventions that have the greatest impact.
“An improved system also needs to restore employers’ confidence that absence from work is only recommended when it is justified.”
Professor Neil Greenberg, the Society of Occupational Medicine said: “The Society of Occupational Medicine (SOM) welcomes DWP’s proposed fit note pilots, particularly the workability plan. The current fit note system is not working. Too many people who could potentially be supported to stay and return to work are not.
“The fit note reform offers clear benefits for employees, employers, and the NHS. SOM anticipate the pilots will generate useful data to improve how fit notes will support employees, alleviate GP pressures and help bridge the gap between employers and employees.
“SOM will be interested to see if the pilots will support better health outcomes through reduced absenteeism, and improved retention. SOM looks forward to working with the DWP to achieve a better fit note system.”
Charlotte Osborn-Forde, Chief Executive of The National Academy for Social Prescribing: “We are pleased that social prescribers – also known as link workers – will play a part in the fit note pilots.
“Link workers can support people with social issues that affect their health, including loneliness, isolation and problems with debt or housing.
“They focus on what matters to people and connect them to community-based support – including advice on money or housing, carers’ support, physical activity groups or local activities. There is strong evidence that this approach can benefit wellbeing and mental health.
“No one who is unable to work should be pressured into doing so, but this voluntary scheme should help join the dots between the NHS, employers and communities, and help people get the right support for wider issues that affect their health.”
Head of Policy and Practice at the Royal College of Occupational Therapists, Joe Brunwin, said: “These pilots are a real chance to help more people stay in or return to work and are centred around a core skill of occupational therapy: understanding people as individuals and considering how their environment and circumstances affect their ability to work.
“Fit note evaluations and pilots show occupational therapists are more likely to take a work-focused approach, using ‘may be fit’ advice and adjustments to support return to work. As well as signing fit notes occupational therapists can provide clinical supervision and governance for non-clinical staff.
“It’s encouraging to see a shift away from a purely medical approach to work absence, towards taking a more holistic approach.
“We look forward to seeing how this initiative makes use of occupational therapy expertise and how we can continue to work together as part of a multidisciplinary team, supporting people to stay in, return to and thrive in work.”
Families across the UK will pay less for children’s meals in restaurants, kid’s tickets to cinemas and theatres, and entry to a wide range of attractions thanks to government action.
Throughout summer, VAT will be temporarily cut to help reduce the cost of days out and support businesses by increasing footfall as government launches Great British Summer Savings scheme.
Move is latest in government drive to support families and help ease pressures on household budgets.
Families will enjoy discounted attractions and meals out this summer, with the launch of the government’s Great British Summer Savings scheme to help people enjoy days out for less.
From 25 June to 1 September 2026, VAT will be slashed on eligible activities, helping families enjoy the weekend treats, the days out, the small plans that make life enjoyable during the cost of living squeeze while supporting the businesses that depend on summer footfall.
Great British Summer Savings will be a targeted and temporary scheme to reduce the costs of children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for everyone for attractions like soft play, adventure centres, and theme parks helping families enjoy a day out for less.
In a further boost for households, children aged five to 15 in England will be able to travel free on local bus services throughout August – making it easier and more affordable for people to get out and about.
The scheme is estimated to cost about £300m. The Chancellor has been clear we are taking a targeted and responsible approach, consistent with our strategy to reduce borrowing and debt and meet the non-negotiable fiscal rules.
Prime Minister Keir Starmer said: “When I think about the summer holidays, I think about the Lake District — where I went as a child and later made memories with my own family.
“I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets.
“This summer we’re cutting the cost of a day out together – free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of kid’s attractions – so families can afford more time together.”
Rachel Reeves, Chancellor of the Exchequer, said: ““Whether it is a fun day out, a family meal or taking advantage of the thousands of amazing attractions across the UK, Great British Summer Savings will support families with the little treats in life while boosting business across the UK.
“This comes on top of support we’ve already put in place including freezing fuel duty, taking off £117 off energy bills, freezing prescriptions, fuel duty and rail fares.
“We are able do this because we have made the right choices, resulting in the UK having the fastest growing economy in the G7, with inflation going down.
“I know the cost of living is still a number one concern for households. Our economic plan is the right one, supporting families and businesses and building a stronger and more secure Britain.”
Rachel Reeves also announced this week that the government is reforming the foreign branches exemption—a rule that allows companies to offset overseas losses—so multinationals can’t use it to reduce the tax they pay in the UK.
The Treasury expect these reforms to raise hundreds of millions a year and fund the package of measures set out today. Final costings for all measures will be published at the next Budget following certification from the Office for Budget Responsibility.
The support for families was announced by the Chancellor as she updated the House of Commons today on the government’s economic response to the Middle East. She reiterated that the government has the right economic plan, with inflation falling faster than expected and the UK being the fastest-growing economy in the G7 at the start of the year – with the IMF upgrading its growth forecast for the UK.
The VAT rate on eligible activities will be cut from 20% to 5% and applies across England, Wales, Scotland and Northern Ireland.
The reduced rate will apply to:
Children’s menu meals served in restaurants for consumption on the premises
Children’s and family tickets for cinemas, theatres, concerts, shows and exhibitions
Admission tickets, for both children and adults, to a range of attractions, including: amusement parks, fairs, museums, zoos, soft play centres, circuses, adventure parks, nature reserves, wildlife parks and observation attractions.
This money saving package supports families, while also supporting businesses through increased footfall. The government expects businesses to pass on VAT savings to customers.
Guidance for businesses in scope of the policy has been published by HMRC which outlines how businesses can operate the scheme.
The Chancellor has also announced a new £350 million Critical Chemicals Resilience Fund that will support strategically important producers and sites, strengthen critical supply chains and help support thousands of skilled jobs, alongside a ceramics package worth £120 million, which will back energy efficiency and decarbonisation in a sector vital to UK manufacturing and local communities.
The government will continue to work in partnership with these sectors on the wider challenges they face, including regulatory costs and the potential for action by the Trade Remedies Authority on unfair overseas competition.
She also confirmed a 10p per mile increase in tax‑free mileage rates for the 2026-27 tax year, backdated to April 2026. On average, this will save around £120 for a worker doing 6,000 business miles, using their own vehicle for work.
This builds on the Chancellor’s announcement yesterday that she is extending the fuel duty cut until the end of the year – saving motorists £120 since 2025.
This comes on top of action the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage.
Fiona Eastwood, Chief Executive Officer of Merlin Entertainments said: ““This is great news for the UK’s visitor economy and for families planning trips this summer. As the season gets underway, this timely move from the Government will make it easier for people to get out, explore and create memorable moments together at destinations across the country.
“Merlin will be applying this VAT cut to both admission tickets and children’s meals, adding more value to days out and short breaks at our 20 UK attractions. We’re excited to welcome more families to our resort theme parks and immersive experiences for a summer packed with fun, play and lasting memories.”
Paul Kelly, Chief Executive Officer of the British Association of Leisure Parks, Piers and Attractions said:“This is a very welcome and timely boost for the UK’s visitor attraction sector.
“It will help make great days out more affordable for families, while giving our members added confidence as they head into the peak summer season. The businesses we represent are at the heart of communities across the country, supporting jobs and local economies, and this measure recognises their importance.
“Our members stand ready to pass on this benefit and deliver brilliant, memorable experiences for visitors of all ages. We look forward to seeing more people enjoying the very best of what the UK has to offer.”
Kate Nicholls, Chair of UKHospitality, said: “”It’s good to see the Government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence.
“A 5% rate of VAT for children’s meals and tickets is a good step to help families enjoy a great British break this summer.
“I look forward to working with the Government to ensure it is simple to apply and targeted effectively to reduce costs for families.”
Mark Way, President AMC Europe & Managing Director, Odeon Cinema Groups said: “ODEON welcomes today’s announcement focused on making cinema even better value and support any measures that seek to help cinema-goers, the industry and consumers more broadly.
As the UK’s largest cinema operator, we believe these measures will continue to help drive strong demand and we’re excited that our guests will be able to enjoy the big screen for less over this blockbuster summer.”
Tim Richards CBE, Founder and CEO, Vue (largest cinema operator in UK by market share), says: “As we anticipate an incredible summer of family films, we welcome this step from the government to help more families enjoy the Big Screen Experience over the holidays.
Chancellor Rachel Reeves statement to Parliament (21/05)
Chancellor Rachel Reeves yesterday (21 May) updated the House of Commons on the Government’s economic response to the war in Iran, and the action they are taking to support families and businesses with the Cost of Living:
With permission, Madam Deputy Speaker, I will make a statement on the Government’s economic response to the war in Iran, and the action that we are taking to support families and businesses with rising costs.
Madam Deputy Speaker, this Government has the right economic plan.
I said I would grow the economy:
And last week the Office for National Statistics confirmed that Britain’s economy was the fastest growing in the G7 for the first quarter of this year.
We beat the Office for Budget Responsibility’s forecast in the Spring, with economic growth at 0.6% in the three months to March.
And because of the resilience of our economy, this week the International Monetary Fund upgraded Britain’s forecast for this year.
I said I would cut borrowing:
Borrowing last year was £20 billion lower than the previous year, and the latest forecasts show it falling in every year of this Parliament.
The IMF has backed our economic plan, saying that the government’s fiscal framework strikes – and I quote – a “good balance between deficit reduction and growth-friendly spending.”
I said I would cut the cost of living:
Since the election interest rates have been cut six times.
Real wages have continued to rise in every single month since I became Chancellor,
And yesterday, the ONS confirmed that inflation fell in April faster than expected, making the UK the only G7 economy where inflation fell last month.
Madam Deputy Speaker, we have the right economic plan.
But the conflict in the Middle East poses a significant challenge to the world economy – including our own.
I have not shied away from my criticism of the war.
I believe it to have been a mistake.
Nor have I ignored the costs that it will bring to bear on the British people.
I have been clear-eyed about my duty: to do what I can to support families and businesses.
To be responsive to a changing world.
And responsible in the national interest.
Next week, Ofgem will confirm the level of the energy price cap that will apply from July. I know that any increase will be felt by families .
Because of the decision that made at the Budget last year to cut £150 off energy bills, we have lessened the impact of rising prices, and current external forecasts suggest that the cap from July will be at a similar level to the cap in April last year.
We stand ready to act if market conditions worsen significantly later this year, and I have been leading cross-government contingency work on design of potential future targeted and temporary support.
For businesses, any support will also need to be carefully targeted at firms most exposed to the crisis.
But while many firms have been insulated from recent prices rises through fixed price contracts, there are sectors that face particular structural issues related to energy costs.
That is why we have already increased support for our most energy intensive companies through the British Industry Competitiveness Scheme and we’ve brought that forward.
And it is why we must also build resilience in our critical infrastructure and industrial strategy sectors where supply chains are critical for growth and security.
Following representations from my right honourable friends – the members for Redcar, Mid Cheshire, and Bathgate Linlithgow – and building on the good work of the Minister for Industry – I am today establishing a £350 million Critical Chemicals Resilience Fund to support strategically important producers.
And having listened to my right honourable friends including the members for Stoke-on-Trent Central, North and South, and my honourable friend the member of Amber Valley and workers represented by the GMB union – I am today announcing a new £120 million fund to help our historic ceramics sector helping them to increase efficiency and drive-down energy costs, because we will always stand up for British industry and British jobs.
The Government has also this week set out additional, targeted support for those businesses most exposed to rising fuel costs.
For hauliers, the Government is granting a 12-month road tax holiday for HGVs, saving the typical heavy lorry up to £912.
To support farmers and the rail freight industry, I have decided to cut duty on red diesel by over a third until the end of this year.
And having heard from my honourable friends the members for Oldham West, Chadderton and Royton and the trade union Unison, I can today announce a 10p per mile increase in tax free mileage rates, backdated to April 2026; benefiting those who need to drive for work, from care workers to plumbers.
Madam deputy speaker, when a country faces challenges because of higher oil and gas prices, we must ensure that those who benefit from increased prices and volatility pay their fair share.
In my first Budget, I extended and increased the Energy Profits Levy.
Last year, I announced a new, permanent windfall tax regime on oil and gas price shocks.
Last month, I increased the Electricity Generator Levy, alongside further action to weaken the link between high gas prices and electricity prices.
Today, I am bringing forward specific changes to the taxation of foreign branch profits; changing how companies are taxed in relation to their overseas activities.
Currently, some oil and gas groups that operate overseas through foreign branches have structured their tax affairs in a way which ensures they pay little or no Corporation Tax on their UK energy trading profits.
Today we are putting an end to that practice.
We expect these reforms to raise hundreds of millions of pounds a year and fund the package of measures set out today, with costings certified by the OBR forecast in the usual way.
Madam Deputy Speaker, I know the pressure family finances are under.
That is why I have already taken action to provide help
I increased the National Living Wage and National Minimum Wage to its highest rate ever.
Freezing prescription charges and rail fares.
And taking £150 off energy bills which contributed towards the fall in inflation last month.
But I want to go further.
And today I am taking further action to ease the burden on family finances.
First, fuel duty – I have already extended the 5p cut twice since the election and I can confirm today there will be no rise this year, recognising the pressure that the war has put on fuel prices.
Second, I know that the cost of the weekly shop is often one of the biggest worries for families.
So last month I met with supermarkets to urge them to do all they can to keep prices low.
And today I am taking action by suspending tariffs on over 100 different foods sold in supermarkets.
And I am clear that I expect supermarkets to pass these savings on in full to consumers.
Third, I will not tolerate any company exploiting the current situation to make excess profits at consumers’ expense.
So, I am bringing forward tough new powers so that the Competition and Markets Authority and other regulators can take action when firms break the rules.
Fourth, for many families driving is not always an option.
Busses are the most popular form of public transport in Britain, with over four billion journeys made last year.
I have already extended the £3 bus fare cap to March 2027 and today I can confirm that bus travel across England will be free for children aged between 5 and 15 throughout August.
Finally, Madam Deputy Speaker, I recognise that what matters for families is not just getting-by, but being able to enjoy time together without worrying about the next bill.
That is why I am launching the Great British Summer Savings scheme to help families and support our hospitality sector.
So I can today announce a temporary cut in the rate of VAT on summer attractions from 20% to 5% over the summer holidays.
This will apply to ticket prices for both adults and children, covering attractions such as fairs, theme parks, zoos and museums.
It will include children’s tickets for cinemas, concerts, soft play and the theatre.
And it will cut the cost of children’s meals in restaurants and cafes from 20% VAT to 5% as well.
These changes will apply across the UK from the start of the Scottish school summer holidays on 25th June and run until the end of the school holidays in England, Wales and Northern Ireland on 1st September.
Madam Deputy Speaker, this Government has the right economic plan.
We promised to grow the economy – and we have.
We promised to cut inflation – and we have.
And we promised to cut the cost of living – and we are.
Cost of living boost with free bus travel for children and targeted food tariff cuts
Free bus travel for children throughout August, helping families across England get out and explore
Comes as products including biscuits, chocolate, dried fruit and nuts set to see targeted cuts to agri-food tariffs, to help to reduce pressure on food prices.
Move is latest in government drive to support families and help ease pressures on household budgets.
Families travelling this summer will benefit from free bus travel for children as the Chancellor ramps up efforts to help with the cost of living (we already have this in Scotland – Ed.)
The Chancellor is committing more than £100 million to fund the free fares scheme and also continuing to support bus services. Every child aged five to 15 in England will travel free on participating local buses throughout August – with unlimited journeys, no registration required, and at no cost to families.
It is part of a scheme called ‘Great British Summer Savings’. The Chancellor will set out more details today on how the Government will support families and businesses this summer.
Prime Minister Keir Starmer said: “We know many hard‑working families are still feeling the squeeze and too often think they have to hold back.
“By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we’re putting money back into people’s pockets and making life that bit easier.
“This government is focused on practical steps that help right now — easing pressure on household budgets, supporting parents during the school holidays, and backing British businesses.”
It comes as the government prioritises protecting households and businesses from rising costs, and the announcements today will build on the work to cut energy bills, protect motorists and crack down on unfair profiteering.
This month the government has delivered £117 off energy bills on average, increased the minimum wage again and frozen rail fares and prescription charges, thanks to the choices the Chancellor made at the Autumn Budget.
As the war in Iran puts pressure on prices at home, the government has stepped in with a tax cut for hauliers to keep our shelves stocked and economy moving, extended the 5p fuel duty freeze to protect motorists at the pump, and emergency relief for families in rural communities who have been hit by a sharp increase in the price of heating oil.
The Chancellor will say that in an era of global conflict, this government has the right economic plan, as economic indicators showed the UK beating the forecasts again this week. The UK was the fastest-growing economy in the G7 at the start of this year, and Monday the IMF upgraded our growth forecast for 2026. Yesterday we saw inflation falling faster than expected, thanks to the action taken at the budget to keep energy prices down.
Chancellor of the Exchequer Rachel Reeves said: “My number one priority is protecting households from rising costs. This summer I want every family to be able to enjoy themselves, that’s why we’re launching the Great British Summer Savings Scheme, and why we’re helping kids with free bus travel throughout August.
“As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”
Transport Secretary Heidi Alexander said: “Free bus travel for every child in August means parents can plan days out, visit loved ones and make the most of the holidays without the added financial pressure.
“We’ve already seen what’s possible – in the West of England, the Mayor’s free travel scheme is making a real difference, particularly for young people in the most deprived communities. That’s exactly the kind of impact we want to deliver for families right across England this summer.
“This builds on the work we’re already doing to make buses better for everyone – from the £3 bus fare cap and the landmark Bus Services Act, to our £3 billion investment in local services and frozen rail fares for the first time in 30 years. We’re making sure public transport works for people, not against them.”
Free bus travel for children will run from 1 to 31 August and covers participating local bus services across England. This could save a family with two children who make a weekly return trip at a £1.50 child fare £27 in August.
It comes following a successful pilot ran last summer by the Mayor for the West of England, Helen Godwin.
Helen Godwin, Mayor of the West of England, said: “Kids Go Free in the West of England has seen around 1.4 million free journeys over the summer, Christmas, and Easter holidays since my election last year.
“It’s brilliant that, after we have invested devolved funding to make a difference that people across the West can see and feel, the government is rolling out Kids Go Free nationally this August!
“There’s been a huge increase in public transport use through our offer already, including children and families travelling on our new green buses. Bus travel from our lowest income areas doubled year-on-year last summer, with kids able to just hop on board and no registration needed.
“I’m so excited to see Kids Go Free return again for the school summer holidays – helping more children and young people to explore the best of what the West has to offer.”
This funding also includes support for bus services that have experienced increased costs, recognising the vital service they provide particularly for school children, pensioners and those living in rural communities. The Government will work with the sector to decide how this support can be allocated with the greatest impact.
Separately, as part of wider efforts to reduce pressure on prices, the Government is launching a business engagement exercise, with a view to making further targeted cuts to agri-food tariffs, suspending tariffs on over 100 types of products including biscuits, chocolate and dried fruit and nuts.
The expected benefit to consumers is more than £150 million a year. The full list of products will be published next week, with business engagement commencing next week. As per previous commitments, the list takes account of domestic production and food security and does not include any significant UK primary agriculture production. This is on top of the expected consumer benefits from agri-food tariff suspensions, announced at the end of April, of around £100 million to £400 million each year.
Today’s announcements build on action the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage. Yesterday (May 20) the Government announced extending the 5p fuel duty cut until end of year.
Michelle Ovens, CBE, CEO & Founder of Small Business Britain, said: “It’s fantastic to see the Chancellor’s commitment to additional funds for the free fares scheme.
“Giving children across the country the opportunity to travel freely during the summer holidays is vital in broadening aspirations, building life experiences, and encouraging young people to envision a future without boundaries.”
Ben Plowden, Chief Executive of Campaign for Better Transport, said: “This is a welcome move to help more families to get out and about by bus this summer and highlights the importance of affordable public transport in easing cost-of-living pressures on hard-pressed households.
“Investing in affordable, reliable bus services is one of the most cost-effective ways of improving people’s quality of life and tackling rising energy costs year-round.”
Lydia Horbury, CEO of passenger champions Bus Users UK said: “Making bus travel free for children throughout August is a hugely welcome step that will help families, encourage greater use of public transport and give young people more independence and opportunity over the summer holidays.
“For many households, even small savings can make a real difference, and this initiative removes both cost and complexity by making travel simpler and more accessible. It is also a wonderful opportunity for more families to experience the convenience and value of local bus services first hand.
“We hope this not only supports communities over the summer but also inspires lasting confidence in public transport and encourages the next generation to see buses as an easy and sustainable way to travel.”
Jason Prince, Director of the Urban Transport Group, said: “Buses are the most used form of public transport, essential in connecting people to opportunities.
“Building on the successful fares offers of many of our member transport authorities, Kids Go Free is a welcome and timely intervention – helping to make public transport more affordable over the summer holidays, and supporting families and young people to get to where they want to go.”
THERE ARE SOME WORDS OF CAUTION, HOWEVER …
Helen Barnard, Director of Policy and Research at Trussell said:“We are deeply concerned about the rising cost of living and the risk this will drive even more people into hunger and hardship, piling pressure on food banks that are already under immense strain.
“This package of summer support will do little to reassure people already struggling to pay their bills and put food on the table that the government has grasped the potentially dire impact of coming price rises, or is prepared to protect people at most risk of being forced to the doors of food banks.
“We expect energy bills to start rising this summer, continuing into the winter, with food and other costs also expected to rise over the year into winter and especially in early 2027. The government must urgently prepare a package of targeted measures to protect people on the lowest incomes from being forced into severe hardship as these cost pressures take hold.
“Last year, food banks in the Trussell community provided more than 2.6 million emergency food parcels across the UK. This isn’t right. The UK government must put appropriate plans in place to protect people on the lowest incomes from bearing the brunt of further spikes in prices and ensure that everyone can afford the essentials.
“The government made a UK manifesto promise to end the need for emergency food. We will not see this become a reality without further bold action to build on the progress it has started.”
Director of Policy and Influencing at Independent Age Morgan Vine said:“The cost of living support measures announced today to reduce the price of some food and travel are positive, but do not address the biggest issue weighing on older people living in financial hardship right now, energy bills.
“It’s inevitable that energy prices are going to soar as we move through summer and into the colder months.
“People in later life on low incomes tell us they are increasingly anxious and are already cutting back on essentials. Many simply cannot afford any further increases in their bills. We urge the UK Government to announce as soon as possible additional targeted energy support for low-income households.
“People of all ages on low incomes urgently need this reassurance so that they have a chance at keeping their homes warm during the colder months.”
‘Knife robberies have fallen by 21% as government action takes effect’
Knife robberies have fallen sharply in major cities in England thanks to joint government and police action to tackle one of the most harmful forms of violence and make communities safe.
New Home Office data shows that robberies involving a knife in the 7 highest volume areas are now more than a fifth lower (21%) than they were in June 2024. Offences fell from 15,918 in summer 2024 to 12,633 by March 2026, meaning thousands fewer people experiencing the fear and financial impact of this violent crime.
The continuing fall follows a period when knife robberies were rising. Since 2024, the new focused national leadership and close partnership with policing have turned the tide. The results, published at the start of Knife Crime Awareness Week, demonstrate the impact of innovation, collaboration and focusing on proven-to work tactics, that has come out of the Home Office‑led Knife‑Enabled Robbery Group.
The group, set up in October 2024, brings together the Metropolitan, Greater Manchester, West Midlands, West Yorkshire, South Yorkshire, Avon and Somerset and British Transport police forces to work together on tackling the issue.
It has helped forces make better use of intelligence and analysis to spot crime patterns early, strengthen investigations by improving how technology such as CCTV is used to identify suspects and build stronger cases. It has also tightened offender management by targeting repeat and high‑harm offenders in hotspot areas and keeping closer grip on performance and outcomes.
Crime and Policing Minister Sarah Jones said: “These results show what can be achieved when we bring a clear focus and relentless grip to tackling knife crime, working hand in hand with the police and our frontline and grassroots partners.
“I know knife robbery has a devastating impact on victims and communities, so sustained reductions like this matter because they mean fewer people at risk of harm.
“I am determined to build on this progress as part of this government’s mission to halve knife crime, combining tough enforcement with early intervention and prevention to protect young people and keep communities safe.”
Every police force involved has recorded sustained reductions. The largest percentage falls were seen in West Midlands Police and British Transport Police, both down by 39%, alongside a 17% reduction in the Metropolitan Police. Greater Manchester, West Yorkshire, Avon and Somerset and South Yorkshire have also seen decreases, ranging from 10% to 21%.
As part of their ongoing efforts, Greater Manchester Police this month launched its new City of Manchester robbery team with dedicated officers targeting knife robberies and offenders in the heart of the city. Part of the Neighbourhood Policing Guarantee, officers will provide a visible deterrent, proactively targeting offenders and offences when they occur.
Force lead for robbery at Greater Manchester Police, Chief Superintendent Helen Critchley said: “Knife-enabled robbery is a crime that causes untold and lasting harm to its victims. In addition to the impact on the victims themselves these offences often happen in open and public spaces, and so affect feelings of safety in the local community.
“Within GMP, we are committed to the role of effective neighbourhood policing in providing public reassurance, preventing these offences and responding efficiently when they do.
“As part of the Neighbourhood Policing Guarantee the force has invested in the creation of a new City of Manchester robbery team who will be tackling all aspects of robbery, including knife-enabled robbery. These frontline officers will provide a visible deterrent, proactively target offenders and when offences do occur, they will provide a best standard of initial investigation to maximise opportunities to bring offenders to justice.
“We are proud to support the government’s ambition to reduce knife-enabled robbery and to be part to the Home Office taskforce set up to achieve this goal. Through the taskforce we are able to increase knowledge, share best practice and test new ideas to keep our communities safe.”
The reductions are part of a wider and sustained downward trend in knife crime. Recent figures show a 27% fall in knife‑related homicides, alongside an overall reduction in knife crime in England and Wales. 63,611 knives have also been removed from the streets through police seizures, surrender schemes and border interventions. Together, these indicators show real progress in reducing the most serious harm and keeping communities safer.
This targeted action is one example of the government’s broader response to knife crime. The latest results and the week of intensified police activity follow the publication of ‘protecting lives, building hope: a plan to halve knife crime’, which brings together action across government, policing and local partners to drive progress and end the cycle of knife crime. The plan sets out a long‑term approach combining tough enforcement with prevention, early intervention and community‑led solutions, as part of the government’s mission to halve knife crime over the next decade.
Knife Crime Awareness Week is a national week of action and engagement led by organisations including the Ben Kinsella Trust. The week shines a spotlight on the devastating impact of knife crime, while highlighting the action being taken across government, policing and communities to prevent violence, protect young people and save lives.
Patrick Green, CEO of the Ben Kinsella Trust and member of the government’s Coalition to Tackle Knife Crime said: “These figures show that coordinated national leadership from the government, and targeted policing, are making a tangible difference, with thousands fewer knife robberies than just 2 years ago. It’s important to recognise that behind every reduction is a life spared the fear, harm or long-lasting impact of violence.
“However, Knife Crime Awareness Week highlights that real, lasting change depends on all of us. We cannot rely on enforcement alone; we must continue to prioritise prevention, work closely with young people, and ensure they feel supported, informed and empowered to make safe decisions long before they ever feel pressure to carry a knife.”
The week also sees a wave of activity across England and Wales for Operation Sceptre, with intensified action from forces up and down the country to tackle knife crime by taking dangerous weapons off the streets and preventing violence before it happens. Led by the National Police Chiefs’ Council (NPCC), the week will see forces carry out targeted enforcement alongside community engagement, including weapons sweeps, test-purchase operations to stop illegal knife sales, knife surrender activity and work in schools and neighbourhoods.
Commander Stephen Clayman, NPCC lead for knife crime and Head of the National Knife Crime Centre, said: “The impact of knife crime on individuals, families and communities is truly devastating and long lasting.
“While the causes and drivers of knife crime are complex, early intervention and putting in place measures to tackle the root causes are essential and this is a key focus of our work in the newly launched National Knife Crime Centre.
“Reducing knife crime remains a priority and policing plays a pivotal role in enforcement activity, but we can’t do it alone. By working together with our partners and supporting communities we know that we can be more effective, responsive and take steps to prevent young people carrying knives.
“Officers and staff work tirelessly every day to tackle knife crime and this week, Sceptre highlights the many activities policing undertakes to keep our communities safe.”
Delivering on its plan, and building on these results, the Home Office will continue to work closely with policing partners to build on this progress, expand what works and keep the pressure on knife crime – driving down violence now, while building a safer future for the next generation.
Pooja Kanda, founder of Justice for Ronan Kanda, and member of the UK government’s Coalition to Tackle Knife Crime said: “It is encouraging to see knife-enabled robberies down by 21% across key hotspot areas, and over 63,000 knives removed from our streets since July 2024.
“We must remember that behind every statistic is a real child, a real family and a community affected by violence. These reductions show that working in partnership together, targeted policing and stronger prevention measures can make a real difference when action is sustained and coordinated.”
Knife Crime Awareness Week is not only about recognising progress, but about maintaining momentum. Through stronger laws such as Ronan’s Law, better education, earlier intervention and continued accountability around how weapons are sold, we can help protect future generations.
The recent reduction in knife-related homicides is positive, but one young life lost is still one too many, and we must continue working together to build safer communities and lasting change.
Organised crime gangs will be hit with raids, shop closures, and cash seizures in a £30 million crackdown on dodgy high street shops
Organised crime gangs operating across Britain’s high streets will be hit with a major police offensive in a new nationwide crackdown on dodgy shops.
Rogue barber shops, vape stores, mini-marts and sweet shops linked to organised crime will face raids, closures and cash seizures under a new £30 million crackdown targeting money laundering, tax evasion, and illegal working over 3 years.
£20 million of funding will go towards an enhanced law enforcement response, including establishing a new multi-agency co-ordination cell based out of the National Crime Agency (NCA).
Police officers will also be uplifted across forces in hotspot regions. Altogether, 75 new police officers will be recruited across the NCA, Greater Manchester Police, West Midlands Police and a joint Kent Police and Essex Police Unit, to build intelligence at a national level and increase the number of dedicated officers tackling organised crime on the ground.
Trading Standards will also be backed with £6 million in new funding to bolster the response to sham businesses in at-risk local authorities. New officer training will be rolled out to identify suspicious businesses, strengthen business compliance, and boost enforcement.
A new High Street Organised Crime Unit has also been established to bring together government departments, policing partners, and Trading Standards. Together, the additional funding and new unit builds on strong enforcement action such as Operation Machinize, to boost the national and local response to targeting criminal networks operating in plain sight on Britain’s high streets.
Overseen by the Security Minister, Dan Jarvis, the unit will be responsible for identifying what more is needed – from stronger powers to better co-ordination – to stop this criminal activity from happening in the first place.
A rapid review of local responders’ powers is underway to explore how these can be strengthened, starting with a consultation on extending the duration of closure orders, where appropriate, to shut criminal businesses down for longer.
Home Secretary, Shabana Mahmood, said: “Criminal gangs have exploited our high streets to launder their dirty money and undercut honest businesses.
“We are hitting back with a nationwide crackdown to shut these fronts down, seize dirty cash and drive organised crime off our high streets and put bosses behind bars”
It comes as the NCA estimate at least £12 billion of criminal cash is generated in the UK each year, with £1 billion laundered through high street businesses like mini-marts, barber shops, vape stores and sweet shops. Some businesses are also connected to the sale of fake goods, tax evasion, illegal working, and illegal drug supply.
Thousands of businesses are expected to be raided, hundreds of arrests made and millions in cash seized as a national intensification campaign will be put on permanent footing annually to drive co-ordinated enforcement across the country.
Sal Melki, Deputy Director of Illicit Finance at the National Crime Agency, said: “For the past 18 months, the NCA, in conjunction with policing partners, has led Operation Machinize, the largest operation against economic crime on our high streets.
“By bringing together policing, HMRC, Immigration Enforcement, Trading Standards, and other partners in a co-ordinated approach, over 950 people have been arrested and over £10 million worth of criminal value seized.
“This criminal activity makes our communities less safe and less prosperous. It undermines legitimate business, deprives public services of tax revenues, and fuels a range of predicate offences such as the drugs trade, illicit goods, trafficking, and organised immigration crime.
“We will not stop and having the support of the High Street Organised Crime Unit to grow the Machinize partnership will enable us to target and disrupt more high harm offenders.
“The HSOCU will be key to a whole of government response, where enforcement action is backed up with the laws, policies and powers required at all levels to get this criminal element out of our high streets.”
Lord Bichard, Chair, National Trading Standards, said: “Organised high street crime, including the illegal sale of tobacco and counterfeit goods, is damaging communities across the country.
“These criminal networks undercut honest businesses, draw money away from local economies and expose consumers to unregulated and potentially unsafe products. They are also often linked to wider offending, including money laundering, exploitation, and violence.
“The creation of a new High Street Organised Crime Unit will help drive a co-ordinated national response while strengthening local enforcement capability through additional support and funding for Trading Standards, police and partner agencies on the ground, who will work together to disrupt organised offenders, protect the public and support honest businesses that play by the rules.”
The latest Operation Machinize in November saw 2,734 premises visited and raided, 924 individuals arrested, over £13 million of suspected criminal proceeds seized or restrained, and more than £2.7 million worth of illicit commodities destroyed. It builds on the £300 million in criminal assets recovered by law enforcement last year, with money invested back to the front lines to support agencies leading the fight against crime.
The new National Police Service will go further by bringing together the National Crime Agency, Counter Terrorism Policing, and regional organised crime units’ capabilities to strengthen the response to serious and organised crime.
Deputy Commissioner Nik Adams, City of London Police and National Police Chiefs’ Council Lead for Financial Investigation and Asset Recovery, said: “Our high streets should be places where legitimate businesses can grow, not places where organised criminals hide behind shopfronts.
“This task force will harness the efforts of the National Crime Agency, national economic crime leads, local community policing, specialist officers and partners to target the businesses being used to launder criminal money, recover criminal assets and protect legitimate traders.
“Operation Machinize has shown that the most effective response comes when neighbourhood officers, financial investigators and national agencies work as one team. Local officers understand their communities and can identify suspicious activity, while financial investigators, the City of London Police as national lead force, and the NCA help connect that activity to the organised crime groups and the money flows behind it.
“The message to organised criminals is clear. If criminal cash is being pushed through high street businesses, policing and our partners will act. Through the High Street Organised Crime Unit, we will use intelligence, asset recovery and financial investigation to turn local disruption into lasting national impact.”
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “The new High Street Organised Crime Unit will be welcome news for people across the country.
“Illegitimate businesses and retail theft are major issues and too often linked to criminal gang activity. Stolen goods are commonly funnelled through illicit supply chains and resold through unscrupulous businesses, helping fund further criminality. This harms businesses, puts colleagues at risk, and pushes up prices for honest shoppers.
“Tackling it requires prioritisation from police and government, and co-or2dination and intelligence sharing between retailers, law enforcement, and local partners. We look forward to working together to deliver real progress.”
John Herriman, Chief Executive of the Chartered Trading Standards Institute, (CTSI), said: “CTSI welcomes the introduction of the High Street Organised Crime Unit, which will bring together partner agencies – including Trading Standards – to tackle organised criminality on our high streets.
“The proliferation of so called “dodgy shops” puts consumers at significant risk and undermines the legitimate businesses who drive economic growth across the UK. The new unit will bring a much-needed focus to help clamp down on a blight on our high streets and communities.”
Association of Convenience Stores Chief Executive Ed Woodall said: “Local shops tell us that rogue traders on high streets are causing massive damage to their businesses and the wider community, so we strongly welcome this Government action to back responsible retailers and crack down on the organised crime gangs that are fuelling the illicit trade.“
The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.
Interim report highlights key challenges in retirement saving across the UK with 15 million people currently undersaving for retirement.
Findings sets direction for further work to improve retirement outcomes ahead of final recommendations in 2027.
Commission set up as part of government’s wider reforms to pensions system to help more people retire with dignity.
The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.
The report highlights that many people are not saving enough for retirement, particularly among low and middle earners, the self‑employed and women, and points to the need for the system to evolve to meet modern working lives.
There are currently 15 million people under saving for retirement which could reach 19 million without action, leaving large groups across the UK facing a severe cliff-edge when they retire, according to a new report from the Pensions Commission.
Set up by the Government in July 2025, the Commission aims to address a savings challenge that has been building for decades, examining why tomorrow’s retirees’ risk being worse off than today’s and making recommendations to reverse this.
This follows the success of the 2002 to 2006 Commission which built a consensus for the roll-out of Automatic Enrolment into pension saving, resulting in 89% of eligible employees now saving into their pensions, up from 55% in 2012.
Its findings include:
Low and middle earners are most at risk, with around half saving only at minimum Automatic Enrolment levels with little else to fall back on.
45% of working-age adults – around 18 million people – are not saving into a pension at all, despite nearly half of them being in work.
Where employers are contributing about the statutory minimum this is largely benefiting higher earners.
Just 4% – one in 25 – of wholly self-employed workers are saving for retirement, and it’s even lower among younger self-employed people.
On current trends around 3 in 10 private pension pots are accessed at the earliest possible opportunity with half of all pots taken out in full. Nearly half of these are spent on large expenses like a car, holiday or renovations.
The Commission examined why tomorrow’s retirees are on track to be poorer than today’s with too many working age adults are saving nothing at all into a pension. A final report with recommendations will follow in early 2027.
Pensions Commissioner, Baroness Jeannie Drake said: “Over the past two decades since the Turner Commission there is no doubt pensions reform can be described as a success. Yet the second Pensions Commission is looking forward and seeing many people not saving enough and millions not saving at all.
“This demands a renewed national settlement on pensions.
“Achieving this will require clarity of purpose, but it also offers a moment of opportunity; to renew a social contract that commands confidence across the country.
“The recommendations we present in our final report will address the need to secure adequate income in later life and a pension system that is fit for decades to come.”
The Commission will set out the course to improving future outcomes whilst ensuring the system is fair and sustainable within and between generations.
Minister for Pensions, Torsten Bell MP, said: “Britain has got back into the pension saving habit, but the job is only half done with tomorrow’s pensioners still on track to be poorer than today’s.
“The Pensions Commission sets out clearly the scale of the challenge: not enough people are saving for retirement, and many of those that are aren’t saving enough.”
The Commission warns that without action millions more people could be at risk of becoming reliant on state support in retirement.
It adds that there is much for public policy to do to shape the future of pensions, whilst maintaining the broad political consensus pensions has had since the Turner Commission in the 2000s. The Commission is clear that change must happen in the right way, with any recommendations for change implemented gradually.
The Government has ruled out any changes to Automatic Enrolment contributions this Parliament.
Dr Yvonne Braun, ABI Director of Long-Term Savings Policy said: “The report makes a powerful case for a new national settlement for pensions. Automatic enrolment is a sturdy foundation, but must evolve to meet the scale of the challenges ahead.
“We and our members stand ready to work with the Commission to deepen saving, extend coverage and support better decisions in retirement, so that everyone can look forward to greater financial security in later life.
“Over the next year the Commission will hear a wide range of views before presenting its final report and recommendations in early 2027. A call for views from all interested parties has also launched today.
Rocio Concha, Director of Policy and Advocacy at Which? said: “Which? welcomes this interim report from the Pensions Commission and the valuable evidence it brings together on the UK’s pension adequacy challenge.
“It is very encouraging to see recognition of the need to increase private pension saving rates and coverage, while also acknowledging the financial pressures caused by the cost of living crisis.
The report rightly highlights that too many working people are projected to reach later life without sufficient savings, and that women, carers, the self-employed and many ethnic minority groups continue to face structural barriers. It is also promising to see a strong focus on how to support people to use their pension savings throughout retirement.
“Which? looks forward to continuing to work with the Commission, industry and wider civil society groups to help drive the reforms needed so people are better prepared for retirement.”
Julian Mund, Chief Executive of Pensions UK, said: “Pensions UK welcomes the breadth and ambition of this report, and shares the Commission’s view that we need a new national settlement on pensions.
“Evidence presented in the report clearly strengthens the case for more pension saving over longer working lives, alongside systemic change that delivers sustainable incomes – building on welcome reforms in the Pension Schemes Act.
“We look forward to working with Government to explore how that diagnosis can be turned into a practical roadmap for reform, well before the next generation fall short of the retirement incomes they expect and deserve.”
Caroline Abrahams, Charity Director at Age UK: “We welcome this new report from the Pensions Commission, which provides an excellent analysis of the problems facing our pensions system today.
“This is the first and necessary step for ensuring the pensions system of the future enables tomorrow’s older people to have a decent standard of living.
“There’s a clear need to improve the way the State Pension and private pension systems work together; otherwise people on low incomes are at risk of falling through the cracks and hurtling towards their retirements without the required funds, or the time to make up the shortfall.
“We look forward to working with the Commission as it explores the best solutions for future pensioners.”
Aside from the commission, the government is also reforming the pension landscape and improving retirement for today’s workers. The Pension Schemes Act, passed this month, will benefit 22 million workers by up to £29,000 by the time they retire, driving down costs, boosting returns and enabling the automatic consolation of small pension pots to ensure every pound saved works harder for working people.
Louise Hellem, Chief Economist, CBI, said: “The publication of the Pensions Commission’s interim report is an important step towards building a long-term framework that delivers adequate living standards in retirement. Getting this right requires the government, businesses and individuals all to play their role in supporting better saving.
“As the debate progresses, it is vital that retirement adequacy is considered hand in hand with the UK’s growth ambitions. Strong economic growth underpins sustainable pension outcomes by supporting employment and higher sustainable wage growth, enabling individuals to save, and driving stronger investment returns over time.
“It is only growth that can sufficiently reduce difficult trade-offs and maintain political, public and business support for change.”
TUC General Secretary Paul Nowak said: “Workers deserve a pension system that guarantees against poverty in retirement and enables them to maintain their standard of living.
“Although millions more people are now building up workplace pensions, far too many on low and middle incomes are not heading for a decent retirement – with women, Black and minority ethnic and disabled workers, and those in the gig economy at highest risk.
“The Commission must now develop a bold plan to fix this, which will need to include higher employer contributions and a fair deal for those currently missing out.”
Nausicaa Delfas, Chief Executive of The Pensions Regulator, said: “The pensions system is still unfinished business with too many people on track for an inadequate retirement income.
“That is why we welcome the Pensions Commission report, and look forward to continuing to work with the Commission, Government and industry to create a system which delivers what matters most: a sustainable income in retirement for everyone.
Independent Age Chief Executive Joanna Elson, CBE reacts to the Pension Commission’s interim report:“We welcome the Pension Commission’s interim report, which clearly sets out the challenges future pensioners will face in securing an adequate income.
“It is positive that the Commission recognises the vital role of the State Pension and social security entitlements in supporting those on low incomes. The findings that certain groups, including women and disabled people, are at greater risk of under-saving are concerning, but not unexpected. They echo our own research, which shows that these groups are more likely to experience poverty in later life.
“With 1.7 million older people currently living in poverty and 1 million more hovering precariously on the edge, it is clear change is needed to ensure a future where everyone in later life has a dignified and financially secure older age.
“We look forward to continuing to work with the Commission as it develops its final recommendations.”
The King’s Speech – the second under this Labour government – is expected to unveil over 35 bills and draft bills ‘facing up to the big challenges our country faces and put the UK on a stronger, fairer path that unlocks hope for people across Britain’. But will it be Starmer’s last?
King’s Speech will strengthen public services, reform the state and reverse decline
Ambitious programme to break with the status quo
New laws reflect big challenges country faces and bolsters UK’s economic, energy and national security
A stronger, fairer country that can weather the storm of global shocks and restore hope will be the focus of the new legislation set out in The King’s Speech today [13 May].
The King’s Speech – the second under this government – is expected to unveil over 35 bills and draft bills facing up to the big challenges our country faces and put the UK on a stronger, fairer path that unlocks hope for people across Britain.
The package of bills is targeted at strengthening the UK’s foundations through measures to bolster economic, energy, national security.
This includes laws to restore order and control to the immigration system, strengthen our public services and reform the state to support a more active government that is on the side of British people.
Under firePrime Minister Keir Starmer said: “The British people expect the Government to get on with the job of changing our country for the better.
“Cutting the cost of living, bringing down hospital waiting lists and keeping our country safe in an increasingly dangerous world.
“Britain stands at a pivotal moment: to press ahead with a plan to build a stronger, fairer country or turn back to the chaos and instability of the past.
“My government will deliver on the promise of change for the British people.”
The government’s first session of Parliament delivered 50 government bills, including the Children and Wellbeing Act, Employment Rights Act, the Great British Energy Act, the Renters’ Rights Act and the Planning and Infrastructure Act.
The legislation passed delivered on core promises made to the British public – making our country safer, stronger and fairer through landmark laws to drive change. That includes help for parents with everyday school costs, stronger rights for victims and survivors, creating the first smoke-free generation to help people live healthier lives, tougher police powers to crack down on antisocial behaviour, and giving communities a say in the decisions that affect them.
This second session will deliver change to our communities.
Economic, energy and national security
The world today is more volatile and dangerous than at any point in recent history. A war on two fronts – in the Middle East and in Ukraine – threatens living standards. The government’s economic plan has put the UK in a better position to weather these storms.
We will rebuild our economy to make us more resilient – and the King’s Speech will drive forward this progress through more protections for small businesses, reforms to regulation to drive growth and innovation, and changes to give businesses the confidence to invest and grow.
Delivering on the government’s manifesto commitment to improve the UK’s trade and investment relationship with the EU, new laws will deliver more trade, more opportunity for young people and help to reduce the cost of living.
We need to get off the fossil fuel rollercoaster with clean, homegrown power we control and electrification of our wider economy. The King’s Speech is expected to unveil the Energy Independence Bill which will give government more power to tackle the affordability crisis and speed up the delivery of clean energy technologies and vital grid infrastructure.
Building on the progress already made to restore order and control to our borders, legislation will be brought forwards to deliver a firm but fair immigration system that restores control and earns public trust.
Bills will also be introduced to meet the evolving threats facing the UK head on, strengthening our defences and keeping pace with modern technologies from cyber-attacks to new powers to counter state threats so we can better disrupt the sharing of extreme content online.
As the Prime Minister set out earlier this week, the King’s Speech will also set out legislation to protect the UK’s steelmaking capacity by giving government options to nationalise British Steel, so that necessary action can be taken if needed while we continue to rebuild the steel sector.
Ending the opportunity crisis
Ending the opportunity crisis requires an active state that can deliver on the government’s commitment to fight for every child. The King’s Speech is expected to include legislation to deliver government’s landmark reforms to transform the school system so that all children get access to an inclusive, high quality mainstream education, and parents don’t have to battle a system just to get their kids the support they deserve.
Removing barriers to opportunity and helping people get on in life is at the heart of the government’s drive to reverse the decline felt across the country. Laws to deliver the manifesto commitment to put an end to the unfair and outdated leasehold system will give people more control over how they live in their own homes and provide stronger rights for homeowners.
Strengthened public services and reformed state
Landmark public service reforms in the NHS, police and special education needs will also strengthen our country. This government is reversing the decline and neglect of our NHS so that it’s built to support people at every stage of their life, as well as preventing them from getting sick in the first place.
A new Bill is expected to be brought forward to accelerate the reform needed to strip back bureaucracy, improve patient care and support early intervention. Legislation to protect much needed social housing stock and better protect domestic abuse survivors will also be included, making sure families have safe, secure, affordable homes to live in.
The new legislation comes alongside the government’s action to ease the cost of living crisis for working people, remove barriers to growth, create more highly paid jobs and equip people with the skills and routes to get on in life.
That includes rolling out free breakfast clubs and supporting parents with free childcare, freezing rail fares, capping the price of bus journeys, and fixing the broken welfare system by tackling the disincentives that pushed too many people away from work and investing £2.5 billion in a youth employment package that will support almost one million young people and help deliver up to 500,000 opportunities to earn and learn.
Meanwhile, following yesterday’s turmoil:
The King has been pleased to approve the following appointments:
Nesil Caliskan MP as Parliamentary Under-Secretary of State in the Ministry of Housing, Communities and Local Government
Natalie Fleet MP as Parliamentary Under-Secretary of State in the Home Office
Catherine Atkinson MP as Parliamentary Under-Secretary of State in the Ministry of Justice
Preet Kaur Gill MP as Parliamentary Under-Secretary of State in the Department of Health and Social Care
Gen Kitchen MP as Comptroller of HM Household (Government Whip)
Deirdre Costigan MP as Junior Lord of the Treasury (Government Whip)
Shaun Davies MP as Assistant Whip, House of Commons
Miatta Fahnbulleh MP, Jess Phillips MP, Alex Davies-Jones MP and Dr Zubir Ahmed MP have left the Government.
AND THIS MORNING, A STATEMENT FROM LABOUR AFFILIATED UNIONS:
Labour’s affiliated unions have been clear that Labour cannot continue on its current path.
Whilst we recognise progress has been made, such as aspects of the Employment Rights Act and the increase in the minimum wage, the results at the election last week were devastating.
Labour is not doing enough to deliver the change that working people voted for at the General Election.
Our focus is on the fundamental change of direction on economic policy and political strategy that unions have been clear is needed, and not on the personalities and unfolding political drama in Westminster.
It’s clear that the Prime Minister will not lead Labour into the next election, and at some stage a plan will have to be put in place for the election of a new Leader.
This is a point where the future of the Party we founded will be debated and determined, and we are working closely as unions to shape a shared vision on policy, political strategy and economic policy that will re-orient Labour back to working people, so Labour do what it was elected to do: govern in the interests of workers.
New legislation to be announced in the King’s Speech on Wednesday will give government the option to bring British Steel into public ownership
Government to introduce legislation which would give it the option to nationalise British Steel, subject to public interest test being met.
Primary legislation would give Government a route to safeguard UK steelmaking capacity and avoid sudden halt of production at Scunthorpe, while it considers options for British Steel to help deliver on government’s Steel Strategy ambitions.
Move strengthens economic resilience and backs Government’s long‑term ambition for a resilient, modern UK steel sector.
British Steel could be back in Government hands for the first time since being sold off in 1988, thanks to powers that will be included in new legislation to be set out in the Kings Speech tomorrow.
The new powers would be subject to public interest tests, and if used to nationalise British Steel, they would boost national security while giving stability to workers at Scunthorpe, and British Steel’s suppliers and customers.
The Prime Minister announced the new legislation in a speech yesterday (Monday 11 May) where he set out his plan to boost our sovereign capabilities, protect British industry, and prioritise British jobs and industrial communities.
The Government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to ensure uninterrupted steel production and to avoid the sudden closure of the blast furnaces, which would have disrupted supply chains and risked thousands of jobs.
Since then, the Government has been in discussions with British Steel’s owner to find a pragmatic and realistic solution for the business on acceptable terms.
It has not been possible to agree a commercial sale with the current owner, and government does not believe an agreement could be reached which would deliver acceptable value for money for taxpayers.
The Government believes introducing legislation to provide a route to public ownership is the appropriate next step, while recognising that any decision to use the powers in the Bill would be subject to the Bill’s public interest test being met.
The public interest test considers factors including national security, maintaining critical national infrastructure and supporting the economy.
The announcement today follows the launch of the Government’s landmark Steel Strategy in March, which set out its long‑term plan to revitalise the UK steel sector and bolster economic resilience by meeting up to 50 percent of UK steel demand domestically.
Prime Minister Keir Starmer said: “Steel is strategically important to our economy and our national resilience. That’s why we acted last year to avoid a sudden halt to production at Scunthorpe, protecting workers and the community that depend on the site, and why we’re now bringing forward legislation to give us options to protect Britain’s steelmaking capability.
“This is what an activist state looks like – taking decisions in the national interest. This Bill would allow us to take action if we need to, while we continue rebuilding our steel sector.”
Business Secretary Peter Kyle said: “Strong domestic steel production is vital for our economy, and this legislation would allow us to ensure stability for British Steel’s workers, suppliers and customers and avoid damaging disruption to crucial supply chains, while we consider options for the site’s future.
“Revitalising our steel sector is a top priority for this government, and bringing forward this legislation would allow us to explore potential future options for British Steel. The government recognises that securing the long-term future of the UK’s steel sector relies on both public and private investment for modernisation.”
Following the Government’s intervention in April 2025, British Steel has continued operating at the Scunthorpe site, protecting steelmaking capacity and supporting jobs across the local economy and supply chain, providing reassurance and stability for the town and its workforce.
The new Bill will be formally introduced to Parliament this week. Any decision to bring British Steel into public ownership would only be taken after the Bill receives Royal Assent, and if the public interest test set out in the legislation is met.
