TUC calls for new cost-of-living support package
The union body wants lower energy bills, free bus travel for under-22s and higher child benefit.
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The Trades Union Congress has called for a broad package of measures to ease pressure on household budgets. Its proposals include a social tariff for energy, free bus travel for under-22s in England, higher child benefit and changes to Universal Credit.
The TUC published the proposals on Thursday, arguing that households remain exposed to higher prices and weak income growth after several years of economic shocks. The report is a policy document from the trade union movement, not a government announcement or an official forecast.
At the centre of the package is a permanent, flexible social tariff for lower- and middle-income households. The TUC estimates that such a scheme would cost between just under £4bn and £6bn a year, depending on wholesale energy prices and how long support was needed.
The union also wants free bus travel for people aged under 22 in England. It estimates that a scheme modelled on Scotland’s existing provision could benefit 9.7 million young people and cost about £1.9bn a year. The report presents transport as a barrier to education, training and employment, while acknowledging that cheaper fares would not replace lost or reduced bus services.
Other proposals include increasing child benefit by £10 a week for every child, reducing the 55 per cent Universal Credit taper rate and adding £1bn a year to the Crisis and Resilience Fund. The TUC says the latter would strengthen the safety net available through councils when households face sudden financial shocks.
The union suggests paying for the package through higher taxes on banks and capital gains. It estimates that raising the bank surcharge from its current 3 per cent to 8 per cent could raise £9bn over four years, while larger increases would raise more. These are the TUC’s own estimates and policy choices, rather than figures adopted by the Treasury.
The pressure facing households is reflected in a House of Commons Library briefing published in August. It said the October-to-December 2026 energy price cap would leave typical household bills 58 per cent above their winter 2021-22 level, despite prices falling from their 2022 peak. The government’s cost-of-living guidance says there will be no Cost of Living Payment in 2026.
The TUC’s report does not commit ministers to any of its recommendations, and no government decision accompanied its publication. The immediate argument is therefore political: whether the priority should be stronger income support funded by higher taxes, or tighter targeting and measures aimed at promoting growth, improving affordability and protecting the public finances.
The report also illustrates the limits of headline household totals. The TUC’s figures combine official data, modelling and policy assumptions; they should not be read as a single bill paid by every household. The underlying trend of higher energy costs is supported by parliamentary analysis, but the size and design of any future support remain matters for ministers and Parliament.
One story, several perspectives
What is established
- The TUC published a report on 15 October 2026 proposing several measures to reduce household costs and raise incomes.
- The proposals include a social tariff for energy, free bus travel for under-22s in England, a £10 weekly increase in child benefit, a lower Universal Credit taper rate and an additional £1bn a year for the Crisis and Resilience Fund.
- The TUC estimates that its proposed social tariff would cost between just under £4bn and £6bn a year.
- The House of Commons Library said typical energy bills under the October-to-December 2026 price cap would be 58 per cent above their winter 2021-22 level.
- The government’s cost-of-living guidance says there will be no Cost of Living Payment in 2026.
Left
Arguments The state should act quickly to protect household living standards, with permanent support funded mainly through higher taxes on banks, wealth and capital gains. Lower energy bills, child benefit and free transport would help people who face the greatest pressure while improving access to work and education.
Values Redistribution, social security, public services and reducing poverty.
Consequences Support could reduce hardship and strengthen demand, but it would require higher taxation and sustained public spending.
Centre
Arguments The pressure on households is real, but policy should be targeted, costed and reviewed against fiscal rules. A social tariff and stronger local crisis support may be justified, while broader measures such as universal free travel or higher child benefit would need clear evidence of value and affordability.
Values Institutional stability, evidence, fiscal responsibility and practical compromise.
Consequences A targeted package could protect vulnerable households while limiting costs, but narrower eligibility could leave some working families without help.
Right
Arguments The priority should be economic growth, cheaper energy through supply and infrastructure reform, and incentives to work rather than a larger permanent benefits bill. Higher taxes on banks and investors could reduce investment, while subsidies risk masking the underlying cost of housing, transport and energy.
Values Lower taxation, market incentives, personal responsibility and smaller government.
Consequences This approach may support investment and limit public borrowing, but it could provide less immediate relief for households facing high bills.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
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The article separates confirmed policy proposals from the TUC’s own estimates and political arguments. The energy-price context is supported by the House of Commons Library, while the government guidance confirms that no Cost of Living Payment is planned for 2026.
- confirmed The TUC published a cost-of-living support report on 15 October 2026. — The report page gives 15 October 2026 as its issue date. source
- confirmed The TUC proposes a social tariff, free bus travel for under-22s in England, higher child benefit, a lower Universal Credit taper rate and more funding for the Crisis and Resilience Fund. — All five measures are listed in the report summary. source
- confirmed The TUC estimates the social tariff would cost just under £4bn to £6bn a year. — The estimate appears in the report’s energy-support section. source
- confirmed The proposed free-bus scheme would cover under-22s in England and is estimated by the TUC to affect 9.7 million young people at a cost of £1.9bn a year. — These are explicitly identified as TUC estimates based on Scotland’s scheme. source
- confirmed The TUC proposes increasing child benefit by £10 a week per child and adding £1bn a year to the Crisis and Resilience Fund. — Both figures are stated in the report. source
- confirmed The House of Commons Library said the October-to-December 2026 price cap would leave typical bills 58 per cent above winter 2021-22 levels. — The figure appears in the parliamentary briefing. source
- confirmed The UK government says there will be no Cost of Living Payment in 2026. — The GOV.UK cost-of-living guidance states this directly. source
- confirmed The TUC report is a policy document rather than a government decision. — The document is published by the TUC as research and policy proposals; no implementation decision is included. source
Editor's note
The TUC report and parliamentary energy briefing provide solid evidence for the new proposal and its context. The TUC’s household calculations are advocacy-based estimates rather than official household averages; no government response or implementation decision was found.Sources
- A fairly funded package of cost-of-living support — Trades Union Congress
- A fairly funded package of cost-of-living support: full report — Trades Union Congress
- Gas and electricity prices during the energy crisis and beyond — House of Commons Library
- Cost of living support — GOV.UK
More on this in other media
- BBC News — „cost-of-living tuc”
- The Guardian — „cost-of-living tuc”
- Sky News — „cost-of-living tuc”