Chancellor Rachel Reeves is set to announce a comprehensive package of measures aimed at alleviating the cost-of-living crisis, which has been exacerbated by the ongoing conflict in Iran. The government will cut import tariffs on over 100 products, including biscuits and chocolate, a move expected to save consumers more than £150 million annually.
Great British Summer Savings Scheme
As part of the initiative, a 'Great British Summer Savings' scheme will provide free bus travel for children aged five to 15 across England throughout August. This programme, funded by over £100 million, is designed to ease financial pressures on families during the summer holidays.
Addressing Rising Energy Costs
These measures come in response to rising prices, with the household energy price cap predicted to increase by £209 a year from July, driven by the Middle East conflict. While inflation recently dropped to 2.8% in April, it is forecast to surge again in the coming months.
Ministers remain cautious about universal bailouts, instead favouring targeted support later in the year. The government hopes these targeted interventions will provide immediate relief to households most affected by the cost-of-living squeeze.
