Labour MPs form new group as they urge prime minister to focus on living standards to help ward off Reform

A group of Labour MPs has urged Sir Keir Starmer to do more to tackle the rising cost of living amid fears the party could lose the next election to Reform.

The MPs are launching a new splinter group, the living standards coalition, to shift the focus to everyday concerns such as food, energy bills and housing.

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In a letter to the prime minister, the group's members warned that one question would be on the mind of voters at the next election: "Did this Labour government make me better off?"

"After 14 years of living in a no-growth economy and with some of the highest bills in Europe, our constituents are struggling to make ends meet," they said.

"More of them are turning away from democracy and towards populism as they can't afford a decent life."

The coalition is the latest splinter group to form since the party's landslide election victory a year ago.

Other groups include the Labour growth group, which focuses on delivering economic growth, and MPs in Red Wall constituencies in the North who are alive to the threat Reform poses in their seats.

A YouGov poll last month found Reform was on track to get the most seats if an election were held this year - with combined support for the Conservatives and Labour collapsing to less than half of the national vote.

While the MPs stress they are supportive of the actions the government has taken so far, the forming of a new group could be interpreted as a sign of restlessness in the parliamentary party, especially given the fallout of last week's botched welfare vote.

In the letter, first reported by The Guardian, the MPs write: "We are here to support your efforts to go further and faster on raising living standards. We come from every corner of our party.

"To raise living standards, we support government interventions that will help to increase incomes and lower costs.

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"We welcome interventions that will raise incomes. We welcome investment in labour- intensive building, education, and healthcare jobs that will raise living standards through employment. We welcome the Employment Rights Bill that will get wages rising."

They added: "We know that some will try to stop us raising living standards.

"They will try to block us from building the affordable housing and windfarms we need to get bills down. They oppose the way we have raised revenue from the very wealthiest to invest in childcare and our NHS.

"We are glad you are keeping this government's focus on raising living standards. We stand in support of you. It is the most important issue to our constituents and the country."

(c) Sky News 2025: Labour MPs form new group as they urge prime minister to focus on living standards