Politics · United Kingdom · 4 hrs ago
Government announces five cost-of-living measures ahead of Budget
The government announced five measures to ease everyday costs ahead of Wednesday’s Budget.
The tax-free mileage rate of 55p for the first 10,000 work miles will be made permanent, and the rate for additional miles will rise from 25p to 35p, helping about three million employees and self-employed people.
Tariffs will be removed on more than 100 products, including baked beans and chocolate, with an estimated £21 saving on food shopping per household over a year; cuts on fertilisers and kerosene are also planned.
Parental pay will reach more than 150,000 parents a year, including self-employed fathers who were previously excluded.
The government will replace the carer’s allowance earnings cliff edge with a gradual reduction as earnings rise.
Hundreds of Post Office drop boxes will be added to reduce queues for sending and returning parcels.
Ministers say the Budget will include further measures to give families and businesses more financial breathing space.
Ministers announced five measures intended to ease living costs ahead of Wednesday’s Budget.
The measures include making the 55p tax-free mileage rate permanent for the first 10,000 work miles and raising the rate above that to 35p.
Tariffs will be removed on more than 100 products, including baked beans, chocolate and gherkins, with the Treasury estimating a £21 annual saving on food shopping for households.
The Government plans to extend parental pay to more than 150,000 parents a year and change how carer’s allowance is reduced when earnings exceed the weekly limit.
Hundreds of extra Post Office drop boxes are also planned to reduce queues for sending and returning parcels.
- Who
- The Government, with Prime Minister Andy Burnham and Chancellor John Healey announcing the measures.
- What
- Five measures intended to help with living costs, including mileage allowance changes, tariff cuts, expanded parental pay, changes to carer’s allowance and more Post Office drop boxes.
- When
- Announced on Tuesday ahead of Wednesday’s Budget.
- Where
- The measures concern the UK.
- Why
- To help people and businesses with heightened living costs and give them “breathing space.
This story does not have two clearly opposing sides.
It was revealed that the Budget is set to provide a £432 million boost to help ensure homeless people are off the streets by Christmas.
Ministers unveiled five measures to help with living costs.
The Budget is due to take place.
- Mileage rate
- 55p for the first 10,000 work miles; 35p above that, increased from 25p
- Tariff removals
- More than 100 products
- Estimated food saving
- £21 per household over the course of a year
- Parental pay
- Planned extension to more than 150,000 parents each year
- Carer’s allowance
- £1 of benefit tapered for each £1 earned above the weekly limit
What people are saying
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.
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.