Millions of people across the UK are set to benefit from a new package of measures designed to reduce everyday expenses, improve financial support for families and make life easier for
unpaid carers.
Announced by the Chancellor ahead of Wednesday’s Budget, the measures target a range of household pressures, from grocery bills and work-related travel expenses to parental leave and access to postal services. The package also includes changes to the benefits system intended to prevent unpaid carers from losing their entire allowance when their earnings rise slightly.
The announcements form part of Prime Minister Andy Burnham’s broader programme of “everyday fixes”, which aims to tackle common consumer problems, reduce unnecessary costs and make public services more convenient. Previous initiatives have addressed unfair airline charges, misleading subscription practices, rogue traders and the cost of school uniforms.
The government says the forthcoming Budget will combine immediate assistance for households and businesses with longer-term measures intended to strengthen economic growth and reduce the cost of living.
Prime Minister Andy Burnham said the government was determined to address both major national challenges and the smaller, everyday problems that place unnecessary financial pressure on people.
He highlighted the benefits for workers who use their own vehicles professionally, parents seeking to spend more time with newborn children and carers who want to increase their working hours without facing financial penalties.
Chancellor John Healey said international conflicts in the Middle East and Europe were contributing to higher costs for households. Although the government could not control global developments, he said, it could intervene in areas where domestic policy offered opportunities to ease the pressure.
Business Secretary Jonathan Reynolds described the measures as practical assistance for working families managing bills, employment and caring responsibilities. Work and Pensions Secretary Pat McFadden, meanwhile, emphasised the need to reform Carer’s Allowance rules that have discouraged some people from taking on additional paid work.
Five measures targeting everyday expenses
- Higher mileage payments for people who drive for work
The government will make the existing tax-free mileage rate of 55 pence per mile permanent for the first 10,000 business miles travelled in a personal vehicle. For mileage beyond that threshold, the rate will increase from 25p to 35p per mile.
The change is expected to benefit approximately three million employees and self-employed workers, including nurses, care staff, builders and others who rely on their vehicles to perform their jobs.
- Parental pay extended to more families
More than 150,000 additional parents each year are expected to gain access to parental pay, including eligible self-employed fathers and partners who have previously been excluded from this support.
Those who qualify will be entitled to two weeks of payments, currently worth up to £194 per week, allowing them to spend more time caring for their newborn children during the early weeks of family life.
The announcement has been welcomed by campaigners advocating stronger paternity rights, although they have called for further improvements to the wider parental leave system.
- Reform of Carer’s Allowance earnings rules
A significant change will address the so-called Carer’s Allowance cliff edge, under which unpaid carers can lose their entire allowance if their earnings exceed the permitted weekly limit by even a small amount.
Under the proposed reform, the allowance will instead be reduced gradually, with £1 of support withdrawn for every additional £1 earned above the threshold. The current earnings limit is equivalent to 16 hours of work at the National Living Wage.
The change is intended to remove a financial disincentive that has led some carers to decline additional shifts, turn down pay rises or give up paid employment altogether.
Carers Trust chief executive Kirsty McHugh welcomed the announcement, saying it would allow unpaid carers to earn more without the risk of suddenly losing their entire benefit and falling into financial difficulty.
Carers UK also welcomed the commitment, noting that the existing rules had created considerable uncertainty and contributed to overpayments that could have serious financial and emotional consequences for affected families.
- Import tariff reductions to help lower household costs
Import duties will be removed on more than 100 products, including familiar food items such as baked beans, chocolate and gherkins.
The changes are intended to reduce costs for businesses importing these goods and potentially ease pressure on consumers. The package also includes measures aimed at supporting farmers facing higher fertiliser expenses and households dependent on kerosene heating oil.
Combined with tariff suspensions introduced previously, the government estimates that the measures could save households up to £21 annually on their food shopping.
- More convenient parcel services through Post Offices
Hundreds of additional parcel drop boxes will be installed across the country, bringing the total to 1,000. The expansion is designed to make sending and returning parcels easier, particularly for people who want to avoid queues at Post Office counters.
The initiative comes ahead of the busy Christmas shopping period and will be accompanied by improvements to 600 Post Office branches by the end of the financial year.
Support for unpaid fathers and carers
The extension of parental pay has received support from The Dad Shift, an organisation campaigning for improved paternity rights.
George Gabriel, the group's co-founder, said the measure would help tens of thousands of families by giving self-employed fathers an opportunity to support their partners and children during the first weeks after birth. He also called for further progress through the government's review of parental leave.
Campaigners representing unpaid carers have similarly welcomed the proposed earnings reform, arguing that a gradual reduction in benefits is fairer than withdrawing the entire allowance once a strict threshold is crossed.
The changes are expected to help carers balance employment with their responsibilities at home, while reducing the risk of unexpected benefit overpayments.
New financing for energy-efficient homes
Alongside the five measures, the government will launch a new Warm Homes loans scheme offering homeowners across the UK access to low-interest and interest-free finance for clean-energy improvements.
The scheme will cover eligible installations such as solar panels, battery storage systems and heat pumps. Homeowners in England, Scotland, Wales and Northern Ireland will be able to access the financing.
The initiative is intended to help households invest in energy-efficient technologies and reduce their reliance on conventional energy sources.
Together, the announcements represent the government's latest attempt to address immediate financial pressures while preparing a wider economic programme for the Budget. Further measures are expected to be outlined on Wednesday, with the government promising to support household finances while pursuing longer-term economic growth.
