UK Markets closed

Households could save £6,700 under Labour, party claims

Ben Gartside
Reporter
Britain's MP John McDonnell speaks during Labour party campaign event in Liverpool, Britain, on 7 November. Photo: Phil Noble/Reuters

Labour’s shadow chancellor John McDonnell has claimed that his party could save households £6,700 if they are elected in general election next week.

McDonnell was speaking at an event in Birmingham on Wednesday, presented research from the Labour party showing a potential saving of up to £6,888 under his plans. He also criticised the level of poverty in the UK under the Conservative government.

The analysis, which calculated the increase in cost of energy, water, broadband and other associated household expenses, detailed an increase in household costs since 2010 of £5,949, which the Labour party blamed on the Conservative government.

The calculations used to calculate the loss of household income since 2010 used a variety of sources, including independent think-tanks, government statistics and trade unions. The calculations to calculate money gained under a Labour government were based off academic research and their own calculations.

The largest rises since 2010 are around childcare and rent, which Labour’s analysis shows has increased by £1,916 and £1,924 a piece.

READ MORE: What the general election could mean for the pound

Commenting on the increase of costs on everyday household, Labour’s McDonnell said: “As chancellor I want to ensure government has sound finances, but I want more than that. I want every family, every household in Britain to have sound finances.

“That means putting a stop to rip-off Britain and making real change so that people are not powerless in the face of profiteering monopolies, bad bosses at work and cast aside by a government that just stands by.

“Judge me on the public finances, but judge me too on the money in your pocket. You deserve better, and you will be better off under Labour. Where the Tories have failed, a Labour government will be on your side.”

READ MORE: What's next for Uber after London licence announcement?

McDonnell also attacked the Conservative party on the increases in child poverty.

He said: “It’s three weeks to Christmas. This week the Channel 4 Dispatches programme reported on the reality of rising child poverty, a new Shelter report found 135,000 children will be without a home this Christmas, and an analysis by the Equality Trust shows the UK’s six richest people control as much wealth as the poorest 13 million.

“With children going hungry and homeless are we really living up to the values of Christianity or any other of our religions or beliefs for that matter?”

Shelter’s report estimated that a child loses their home every eight minutes, with 183 children losing their homes per day. Commenting on their report, Shelter’s chief executive Polly Neate said: “The fact 183 children become homeless every day is a scandalous figure and a sharp reminder that political promises about tackling homelessness must be turned into real action.

“Day in, day out we see the devastating impact the housing emergency is having on children across the country. They are being uprooted from friends, living in cold, cramped B&Bs and going to bed at night scared by the sound of strangers outside.”