The Government is poised to end a cliff edge in benefits faced by 1.4million claimants in this week's Autumn Budget. Chancellor John Healey is preparing to set out the spending changes when he presents his first budget on Wednesday.
Carers' Allowance cliff edge to be scrapped
One key change he is expected to make is to end the Carers' Allowance cliff edge which has penalised unpaid carers for going over their earnings limit, even by just pennies per week. Under current rules going over the set limit means all the carer's benefit ends - something widely described as a scandal by campaigners. Now it looks set to be replaced by a taper, so the benefit will decrease by £1 for every additional pound earned.
It could help thousands who lose out by exceeding the limit.
Everyday fixes in the Budget
Ministers made the announcement as they set out a series of “everyday fixes” to help people with the cost-of-living crisis, which are expected to feature in this week's Budget. They also plan to make a higher tax-free mileage allowance of 55p permanent, and to slash tariffs on a range of popular foods, including chocolate, beans and gherkins, to make them cheaper for shoppers.
The tariff cut is also aimed at bringing down the price of fertiliser for farmers, and kerosene for households which use the fuel for heating. Elsewhere, ministers plan to extend parental pay to more than 150,000 parents each year, including self-employed fathers who had previously missed out.
Prime Minister's comments
Prime Minister Andy 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.”
Mr Burnham, who is now in his 100th day in office, has announced a series of steps to help people and businesses with living costs since he came to power. These include cutting VAT on energy bills this winter, and slashing business rates for pubs and clubs.
Minimum wage and other measures
The Prime Minister said the Government will “go further to give families and businesses the breathing space they need” at the Budget on Wednesday. One of the steps Mr Healey is to announce is an increase in the minimum wage by nearly 4%, according to the Times.
The national living wage is expected to rise from £12.71 to £13.20 at the Budget, the newspaper reported. But in a manifesto-breaking move, the Chancellor is expected to end the trend of hiking the national minimum wage for those aged 18 to 20 by more than the rate for older workers. It will instead rise roughly in line with the national living wage, the Times said.
On Monday, it was disclosed that the Budget will deliver a £432 million boost to help ensure homeless people are off the streets by Christmas. Mr Burnham said he wanted to give “every single person” sleeping on the streets an offer of help by the end of this year.
