The UK government has unveiled five everyday fixes it says are designed to ease household costs, support working families and end the Carer’s Allowance cliff edge ahead of Wednesday’s Budget. The announcement comes from HM Treasury and names Chancellor of the Exchequer John Healey, Prime Minister Andy Burnham, Business Secretary Jonathan Reynolds and Work and Pensions Secretary Pat McFadden in the release.

Highlights

  • The package is aimed at millions of working people, families and unpaid carers across the country.
  • The government says it will lock in higher tax-free mileage rates and extend parental pay to more than 150,000 additional parents per year.
  • It also says it intends to end the Carer’s Allowance cliff edge, remove tariffs on more than 100 products and roll out more Post Office drop boxes.

What is being announced

According to the Treasury, millions of families, working people and unpaid carers will benefit from measures that target costs from the weekly shop to car travel for work. The government says the package also extends support to new parents and addresses a system that can leave unpaid carers worse off if they earn more.

The release says the measures are part of a wider series of “everyday fixes” and comes before the Budget on Wednesday, which it says will focus on giving families and businesses breathing space while taking long-term decisions to strengthen the economy and bring costs down.

Mileage rates and parental pay

One measure would make higher tax-free mileage rates permanent. The government says it will lock in the 55p-per-mile rate for the first 10,000 business miles and raise the rate above 10,000 miles from 25p to 35p per mile. It says around three million employees and self-employed people who use their own vehicle for work are expected to benefit.

The Treasury also says it will extend parental pay to more than 150,000 additional parents per year, including self-employed fathers and partners who have previously missed out. Eligible parents would get two weeks of support currently worth up to £194 a week.

Carers, tariffs and Post Office access

The government says it intends to end the Carer’s Allowance cliff edge. Under the change, unpaid carers would no longer lose their entire allowance simply for earning a penny over the Weekly Earnings Limit, which is equivalent to 16 hours at the National Living Wage. Instead, the release says only £1 of support would taper away for every additional £1 earned.

The announcement also says import tariffs will be removed on more than 100 products, including family favourites such as baked beans, chocolate and gherkins. The Treasury says households could save up to £21 on their food shop each year, together with tariff suspensions already introduced.

Another measure would roll out hundreds more Post Office drop boxes, taking the total to 1,000, while 600 Post Office branches are due to be upgraded by the end of the financial year. The government says the aim is to make parcel returns and everyday errands easier, especially in the run-up to Christmas.

Warm Homes loans scheme

The release says today will also mark the launch of a new Warm Homes loans scheme. It says homeowners across the UK, including in Scotland, Wales and Northern Ireland, will have access to low-interest and interest-free finance to install clean energy technology including solar panels, batteries and heat pumps.