Chancellor John Healey has announced five everyday fixes to tackle the cost of living crisis ahead of the Autumn Budget 2026, with Prime Minister Andy Burnham saying the changes "will make life easier" for families.
Healey is set to address the nation tomorrow as part of the Budget, discussing a range of topics to move "money and power out of Westminster, and into every postcode around Britain". The package aims to help millions of families save money on food shops and reduce fuel costs, while extending support to new parents and fixing an unfair cliff edge that can penalise unpaid carers for earning more.
Five Everyday Fixes Announced
The Chancellor is locking in the 55p per mile rate for the first 10,000 business miles and increasing the rate above 10,000 miles from 25p to 35p per mile, supporting around three million employees and self-employed people who use their own vehicle for work.
Parental pay will be extended to more than 150,000 additional parents per year, including self-employed dads and partners who have previously missed out, giving eligible parents two weeks of support currently worth up to £194 a week so they can spend more time with their child.
Carer's Allowance and Import Tariffs
Unpaid carers will no longer lose their entire allowance simply for earning a penny over the Weekly Earnings Limit, equivalent to 16 hours of the National Living Wage. Instead, only £1 of support will taper away for every additional £1 earned.
The government will also remove import tariffs on more than 100 products to help lower import costs on family favourites including baked beans and chocolate, while supporting farmers facing higher fertiliser bills and households that rely on kerosene heating oil. Together with tariff suspensions already introduced, households could save up to £21 on their food shop each year.
Post Office Drop Boxes and Reactions
Hundreds more Post Office drop boxes will be rolled out, bringing the total to 1,000, making it easier for people to send and return parcels without having to queue at a counter. This comes alongside upgrades to 600 Post Office branches by the end of the financial year.
Healey said: "Today's everyday fixes are just a small part of what we are doing to give families a bit of breathing space. 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."
Burnham said: "We are taking on the big challenges facing the country. But that doesn't mean losing sight of the everyday problems that cost people money or simply aren't fair. 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."
He added: "And at Wednesday's Budget, we'll go further to give families and businesses the breathing space they need today, while we build a stronger economy, transform our country and bring down cost for people long-term."
