Labour’s rising costs hit higher earners more, official figures show
Office for National Statistics figures show that, in the year to June 2026, higher-income households faced slightly higher annual inflation than lower-income households, reversing a pattern seen since March 2025. The data also indicates that working households and private renters experienced the greatest price pressures, while separate ONS wellbeing data recorded rising anxiety among the public.
Inflation was 2.8 per cent for high-income households and 2.7 per cent for low-income households; it was 2.9 per cent for working households and 2.5 per cent for retired households. Private renters faced 3 per cent inflation, higher than social renters and homeowners, while women and people aged 20 to 24 reported particularly high anxiety. Opposition figures and the TaxPayers’ Alliance blamed Labour policies, while the Treasury cited measures including winter electricity VAT removal, business-rates reductions and a £2 bus-fare cap.
- Higher-income households recorded slightly higher inflation than lower-income households.
- Workers and private renters faced the highest cost pressures.
- ONS data also showed increased public anxiety.
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The case for
Critics argue that the figures are consistent with Labour’s policy choices adding to pressure on households, particularly through measures that may raise business costs and be passed on in prices. They contend that working people, private renters and higher earners all facing relatively stronger inflation challenges the claim that the Government is easing the cost of living, and that rising anxiety reinforces the need for a different approach. Their underlying concern is that fiscal and regulatory decisions should not make everyday expenses less affordable for those supporting themselves through work.
The case against
The Government’s supporters argue that small differences in annual inflation rates do not establish that Labour policy caused them, since prices are affected by global energy, food, housing and market conditions as well as domestic decisions. They say targeted measures such as removing VAT from winter electricity, reducing business rates and capping bus fares are intended to lower costs directly, while the ONS data describes differing experiences rather than a verdict on government performance. Their case is that policy should balance immediate household relief with sustainable public finances and support for public services, rather than judge success from a single year’s comparison.