Now, you may have noticed that things have been getting pretty darn expensive here in the UK recently. And whilst I don’t necessarily come bearing the answer to all of our financial prayers, I am here to let you know that the government has just announced somewhat of a glimmer of hope in the form of five ‘everyday fixes’.
From tariff cuts to tax-free mileage, these five fixes are being introduced in a bid to ease the ongoing pressure of the cost-of-living crisis for millions of families across the country. The information that’s been revealed by ministers is currently fairly limited, but it is set to all be made clearer when the official Budget is outlined tomorrow afternoon. But for now, here’s what we know.
Tax-free mileage rates
Around 3 million people are expected to benefit from what is being described as ‘the biggest increase in mileage rates for 15 years’. The tax-free mileage rate will be locked in at 55p per mile, meaning that employees and self-employed people who drive for work will receive up to 55p per mile for the first 10,000 business miles they drive each year. The government will also raise the rate for those who drive over the 10,000 miles from 25p to 35p for each mile above the threshold.
Self-employed parental pay
Around 150,000 self-employed dads and same-sex partners will become eligible for parental pay for the very first time. Those parents who aren’t currently entitled to statutory parental pay could be eligible for two week’s support, currently worth up to £194 per week.
Tariff cuts
The government has announced that import tariffs will be removed on over 100 products, including baked beans, chocolate, and gherkins. This could save families up to £21 on their food shop each year. There will also be tariff cuts on fertiliser and kerosene.
Carer’s Allowance
Unpaid carers will no longer lose their entire allowance due to earning even a penny over the Weekly Earnings Limit. This change will see an end to the Carer’s Allowance cliff edge, and instead, the allowance will be reduced by £1 for each additional £1 earned above the threshold.
Post Office drop boxes
Lastly, hundreds more Post Office drop boxes will be rolled out, making it easier and more convenient to send and return parcels without having to face a hefty queue at the Post Office counter.
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.
“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.”
Find out more about the government’s ‘everyday fixes’ ahead of tomorrow’s Budget announcement here.
