Sir Keir Starmer’s ‘cost of living champion’ has said he is exploring measures to help households with their bills, ranging from tackling bank payment arrears to taking more levies off energy costs.
Sir Richard Walker, executive chair of supermarket chain Iceland, told the FT that the cost of living “at home was well above people’s concerns” and that the government was determined to “make this their core issue”.
Walker, whose appointment on February 6 was overshadowed by the Lord Peter Mandelson scandal, said he would work once a week with an existing Downing Street ‘sprint team’ aimed at tackling the cost of living.
The Prime Minister and his Cabinet should make or pull “certain interventions and levers” to convince households they understand their situation, Walker said, noting that more could be done to reduce energy costs after removing the ECO energy efficiency program from bills.
“I’m not going to get into it, but I think this is a ripe area they need to look at,” he said in an interview.
US President Donald Trump last month outlined plans for a one-year 10 percent cap on credit card interest rates. Walker said this was a “terrible idea” that would lead to capital flight and drive people towards loan sharks.
He added: ‘But there are other things you can look at, like late fees for example, which are not core income for banks… and are not fair.’ This could include tackling unauthorized overdrafts and penalizing credit card interest for missing a payment deadline, he said.
“Hopefully I will add strength to their elbow, bringing outside experience to the great work that these very good policy people are doing,” Walker said, adding that his role will be “temporarily limited” and focused on measures that do not “panicize” the markets or take up a lot of parliamentary time.
Starmer started 2026 with a promise to make tangible improvements to the finances of British households and deliver “positive change” for voters.
His focus on the cost of living was already evident in the November Budget, with Chancellor Rachel Reeves announcing a freeze on rail fares, a temporary cap on fuel duty and a promise to save around £150 on energy bills by scrapping one environmental charge.
Some of these measures are expected to reduce inflation, which remains above the official target of 2 percent. That, in turn, could pave the way for lower interest rates – a crucial part of the cost of living.
Walker, 45, suggested there could be a “coalition of the willing” of supermarkets to supplement “Healthy Start” vouchers, a program that helps low-income mothers of small children buy basic foods.
Other government interventions could focus on ‘contracted services’ such as car renewals, where customers who have stayed with certain companies for a long time are punished with price increases in the medium term.
Walker, the multimillionaire son of Icelandic founder Malcolm Walker, criticized the government last year for fueling higher food prices after retailers were hit by rises in national insurance contributions and the national living wage.
Asked about his comments, Walker said accepting the Downing Street role would not jeopardize his record if he “speaks out and speaks out on behalf of my clients and says things as I see them”.
“Before the election, the narrative was ‘the most pro-growth, pro-business government ever’, and I honestly believe they can get back to that,” he said. “I think they are trying, and I think they understand that there is a credibility gap in terms of their relationship with the business community.”
Reeves’ pressure on regulators to focus on ways to boost economic growth has raised concerns among some Labor MPs about whether changes would hurt consumers.
Walker revealed he would write to regulators to ask what they were doing to help consumers, saying: “I think two things can both be true: that we need longer-term economic growth, but there are also interventions that need to be looked at now in relation to the cost of living.”
“We are not going to lower the price of everything everywhere,” he said, warning of the risks of a “Greek-style deflationary economy.” “It’s more about affordability, accessibility and a sense of justice,” he added.
As Iceland’s boss, Walker has shown an interest in tackling social problems by removing palm oil and plastic from own-brand products, hiring ex-offenders and introducing microloans for struggling customers and discounts on infant formula.
“The way we have operated as a company in one of the most competitive industries and… actually increased our market share is by thinking about our customers first,” he said. “I think that center-left social objective is the way you can run a good business now.”
Walker added that he had long ago given up on the idea of becoming an MP because elected politicians are expected to toe the party line.
“When they suggested the role of cost of living, I thought, ‘That’s great,’ because that’s exactly who I am. I’m that critical friend and that pressure point.”
