The Chancellor has announced a set of five practical measures aimed at easing everyday costs for working people, families and unpaid carers, the government has said. The package comes ahead of Wednesday's Budget and covers food, fuel and family life.

Key points

  • Mileage rates — the 55p per mile rate for the first 10,000 business miles is being locked in, with the rate above that rising from 25p to 35p.
  • Parental pay — more than 150,000 extra parents a year will qualify, including self-employed dads and partners.
  • Carer's Allowance — the cliff edge ends, so carers keep some support instead of losing the whole allowance.
  • Import tariffs — charges are being removed on more than 100 products, including baked beans.

Under the plans, the higher tax-free mileage rates become permanent, which the government says will help around three million employees and self-employed people who drive their own vehicle for work, such as nurses, care workers and builders.

Parental pay will be extended to more than 150,000 additional parents each year, including self-employed fathers and partners who previously missed out. Eligible parents will get two weeks of support currently worth up to £194 a week.

The Carer's Allowance cliff edge will also be scrapped, so unpaid carers no longer lose their entire allowance for earning a penny above the Weekly Earnings Limit, equivalent to 16 hours of the National Living Wage. Instead, £1 of support will taper away for every additional £1 earned.

The Chancellor, John Healey, said the measures were "just a small part of what we are doing to give families a bit of breathing space", adding that conflict in the Middle East and Europe was pushing up everyday costs at home. Work and Pensions Secretary Pat McFadden said the government had listened to carers' concerns about the cliff edge and intended to bring it to an end.

Editor's comment

What it means in practice

For households, the changes are mostly about small but regular sums: a little more back on work mileage, support for new parents who work for themselves, and a fairer taper for carers who take on extra hours. The tariff removals could shave a little off some grocery bills, though the effect at the till will vary.

  • Drivers — keep records of business miles, since the higher rate above 10,000 miles applies to claims.
  • Carers — check how the new taper affects your allowance before changing your hours.
  • Self-employed parents — look out for details of how to claim the extended parental pay.