PM promises end of carers ‘cliff edge’ in cost-of-living package on Budget eve

The Government has promised to end a cliff edge in benefits faced by unpaid carers as part of a cost-of-living package announced on the eve of the Budget. Chancellor John Healey is expected to end the Carers’ Allowance cliff edge which has penalised unpaid carers for going over their earnings limit, even by as little as a few pence per week. The sudden end in support for breaching the limit, widely described as a scandal by campaigners, will be replaced by a taper, so the benefit will decrease by £1 for every additional pound earned.

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 Wednesday’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 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. 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. The Sun meanwhile reported that Mr Healey will freeze fuel duty, as a means of protecting motorists from an extra cost at the petrol pump.

The tax was due to be unfrozen for the first time in 16 years, but Mr Healey is to keep it at 52p per litre amid concerns about the impact of the Iran war, the Sun 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.