(Image: Alberto Pezzali)
Ahead of the Budget 2026 tomorrow Prime Minister Andy Burnham and Chancellor John Healey have announced five “everyday fixes” covering work-related travel, food prices, parental pay and support for unpaid carers, alongside plans to make sending and returning parcels easier.
The measures are expected to feature in Wednesday’s Budget, with Mr Burnham promising further action to help families and businesses.
Here are five things we know so far about the Budget changes.
1. Tax-free mileage allowance to rise for higher-mileage drivers
Millions of employees and self-employed people who drive for work are set to benefit from changes to the tax-free mileage allowance.
The Government will make the existing 55p-a-mile rate permanent for the first 10,000 business miles.
For mileage above that threshold, the rate will increase from 25p to 35p per mile.
The Government expects the overall package to help around three million workers.
2. More than 100 products to have tariffs scrapped, from gherkins to chocolate
Shoppers could save money on their food bills after ministers announced plans to remove tariffs on more than 100 products.
Popular items including baked beans, chocolate and gherkins are among the goods covered by the changes.
The Treasury estimates the tariff cuts will save households around £21 on food shopping over the course of a year.
The changes are also intended to reduce costs for farmers by cutting tariffs on fertilisers, while households that use kerosene for heating could benefit from a separate tariff reduction.
3. Parental pay to be extended to more than 150,000 parents
More than 150,000 parents a year are expected to benefit from an extension to parental pay.
The changes will include self-employed fathers who have previously missed out on the support.
The measure is intended to give more parents financial support during the early weeks of their child's life.
Further details are expected as the Budget measures are set out.
4. Carers’ Allowance earnings rule to change
The Government has promised to end the controversial Carers’ Allowance earnings cliff edge.
Under the current system, unpaid carers can lose their entire benefit if they earn even a few pence above the weekly earnings limit.
The Government plans to introduce a taper instead, reducing the benefit by £1 for every £1 earned above the limit.
The change is intended to prevent carers from suddenly losing all their support when they take on extra paid work.
5. More Post Office parcel drop boxes planned
The Government is also rolling out hundreds of additional Post Office drop boxes.
The aim is to reduce the number of people who have to queue at counters to send or return parcels.
The extra facilities are expected to be particularly useful in the run-up to Christmas, when parcel volumes typically rise.
What has Andy Burnham said about the Budget?
The Prime Minister said the Government wanted to address everyday financial pressures alongside its wider economic plans.
He 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.”
Chancellor John Healey said the measures were only a small part of the Government's plans to ease pressure on household budgets.
He 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.”
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£432million homelessness funding also announced
The Budget is also expected to deliver a £432million boost to help get homeless people off the streets by Christmas.
Mr Burnham said he wanted to ensure “every single person” sleeping on the streets received an offer of help by the end of the year.
The Prime Minister has indicated that further measures to support families and businesses will be announced in Wednesday’s Budget.