The Chancellor has unveiled five everyday fixes for household costs, supporting people with the cost of food, fuel and family life.
The measures include making higher tax-free mileage rates permanent and increasing support for nurses care workers, self employed builders and others who drive for work. The 55p per mile rate will be locked in for the first 10,000 business miles and the rate above 10,000 miles will be increased from 25p to 35p per mile. This will support around three million employees and self-employed people who use their own vehicle for work.
Parental pay will be extended to more than 150,000 additional parents per year, including self-employed dads and partners who have previously missed out, giving eligible parents two weeks of support currently worth up to £194 a week so they can spend more time with their child.
The Carer's Allowance cliff edge will be stopped, so unpaid carers no longer lose their entire allowance simply for earning a penny over the Weekly Earnings Limit, equivalent to 16 hours of the National Living Wage. Instead, only £1 of support will taper away for every additional £1 earned.
Import tariffs on more than 100 products will be removed, helping to lower import costs on family favourites including baked beans, chocolate and gherkins, while also supporting farmers facing higher fertiliser bills and households that rely on kerosene heating oil. Together with tariff suspensions already introduced, households could save up to £21 on their food shop each year.
Hundreds more Post Office drop boxes will be rolled out to bring the total to 1,000. This will make it easier and more convenient for people to send and return parcels without having to queue at a Post Office counter. This announcement comes alongside upgrades to 600 Post Office branches by the end of the financial year, improving services for customers across the country.
Prime Minister Andy Burnham said: "We are taking on the big challenges facing the country. But that doesn’t mean losing sight of the everyday problems that cost people money or simply aren’t fair.
"If you’re a nurse driving for work, a parent spending those precious first weeks with your new baby, or an unpaid carer picking up an extra shift, these changes will make life a little easier and put more money back in your pocket.
"And at Wednesday’s Budget, we’ll go further to give families and businesses the breathing space they need today, while we build a stronger economy, transform our country and bring down cost for people long-term."
The Chancellor of the Exchequer John Healey said: "Today’s everyday fixes are just a small part of what we are doing to give families a bit of breathing space.
"Conflict in the Middle East and Europe is hitting families here at home through higher everyday costs.
"We can’t control global events, but we can act where we can make a difference."
