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The government has unveiled five "everyday fixes" aimed at the cost of food, fuel and family life, announcing them on 26 October 2026 ahead of the Budget on Wednesday 28 October. They cover tax free mileage rates, Carer's Allowance, parental pay, import tariffs and Post Office parcel drop boxes.
The Chancellor, John Healey, presented the package. It is the latest in the Prime Minister's series of everyday fixes, which the government says follows earlier action on airline charges, subscription traps, rogue traders and school uniform costs.
At a Glance
- The government is locking in a 55p per mile tax free rate for the first 10,000 business miles and raising the rate above that from 25p to 35p.
- Unpaid carers will no longer lose all of their Carer's Allowance for earning over the Weekly Earnings Limit, with support instead tapering away by £1 for every extra £1 earned.
- More than 150,000 additional parents a year, including self employed fathers and partners, will be offered two weeks of parental pay worth up to £194 a week.
- Import tariffs will be removed on more than 100 products, and the government says households could save up to £21 a year on their food shop alongside earlier suspensions.
- The Post Office will have 1,000 parcel drop boxes by the end of the financial year, and a new Warm Homes loans scheme opens today.
How much will the higher tax free mileage rate be worth?
Employees and self employed people who use their own vehicle for work can claim a tax free amount for each business mile they drive. The government says it is locking in the 55p per mile rate for the first 10,000 business miles, describing it as the biggest increase in mileage rates for 15 years. The Chancellor said the higher rates would be made permanent.
The change that is new is for drivers who go further. Following a review, the rate for miles over 10,000 a year will rise from 25p to 35p. Ministers say this supports people who cover significant distances for work, including nurses, care workers and self employed builders, and expect around three million people to benefit.
The government has put figures on it. A worker doing 6,000 business miles will get £120 a year in additional tax savings, it says, while someone driving 15,000 business miles will receive up to £300. The announcement does not say what those savings are measured against, or when the higher rate above 10,000 miles takes effect.
Carer's Allowance cliff edge, what changes for unpaid carers?
Under the current rules, an unpaid carer who earns even a penny over the Weekly Earnings Limit loses the whole of their Carer's Allowance. The government says that limit is equivalent to 16 hours a week at the National Living Wage. The Chancellor's announcement ends that cliff edge. Instead, only £1 of support will taper away for every additional £1 earned.
Work and Pensions Secretary Pat McFadden said the government had listened to carers' concerns about a system that leaves them financially worse off for taking on a few more hours or getting a modest pay rise, and that it intended to bring that to an end.
Carers' charities welcomed the move. Kirsty McHugh, chief executive of Carers Trust, said the cliff edge had long been a concerning part of the benefits system and that carers should now be able to earn a little more without being inadvertently plunged into debt. Emily Holzhausen, director of policy at Carers UK, said her organisation had called for a taper for many years. Its evidence, she said, found carers giving up part time work or turning it down because they could not risk losing 100% of their allowance. She added that the change should also reduce earnings related overpayments.
The announcement does not give a start date for the taper. Holzhausen's own words were that the change would help "once introduced". The government had already opened a review of the benefit, which we covered when the call for evidence on Carer's Allowance launched.
Self employed dads and partners, who gets the new parental pay?
The government says parental pay will be extended to more than 150,000 additional parents a year. That includes self employed fathers and partners who have previously missed out. Eligible parents will receive two weeks of support, currently worth up to £194 a week, so they can spend more time with their child.
George Gabriel, co-founder of The Dad Shift, said the pay would make a real difference to tens of thousands of expecting families each year. He said he hoped more would follow through the government's review of parental leave, which the announcement mentions but does not describe further.
Note: The release does not set out the eligibility conditions in detail or say when the new entitlement begins.
Which products are getting tariff cuts, and how much will you save?
The government is removing import tariffs on more than 100 products. The examples it gives include baked beans, chocolate and gherkins. The list also reaches beyond the food aisle, with fertilisers aimed at farmers facing higher bills and kerosene for households that heat their homes with it.
The notes to editors give more detail. Garlic, citrus jams and marmalades, throat pastilles, boiled sweets, toffees, plant based drinks and chocolate coated wafers are all expected to see cuts. Current tariffs on those items range from 8% on most of the sweets to 20% plus £19 per 100kg on citrus jams. Kerosene carries a 4% tariff and fertilisers between 2% and 6.5%.
Together with tariff suspensions already introduced, the government says households could save up to £21 on their food shop each year. This is the second government led cost of living tariff package this year, following one in June 2026 that covered pasta, fruit juice and tuna. The government expects the two packages to reduce consumer costs by roughly £245 million to £595 million a year. That wide range is the government's own estimate, and the release does not explain what drives the gap.
Separately, it says a business led package of tariff suspensions introduced in July is being extended, with a new application window open for further products. Our earlier report on the red tape and tariff cuts for businesses covers that side of the policy.
Warm Homes loans and Post Office drop boxes, what's on offer?
The fifth fix is practical rather than financial. Hundreds more Post Office drop boxes are being rolled out, taking the total to 1,000, so people can send and return parcels without queuing at a counter. The government says 500 will be in place by the end of this year and 1,000 by the end of the financial year. It adds that 600 Post Office branches will be upgraded by the end of the financial year.
Alongside the five fixes, a new Warm Homes loans scheme launches today. It offers homeowners across the UK, including Scotland, Wales and Northern Ireland, low interest and interest free finance to install solar panels, batteries and heat pumps. The government says the support reduces the cost of borrowing and lets households spread the upfront cost.
It also says installing a heat pump, battery and solar panels could cut energy bills by up to £550 a year, with further potential savings from a time of use tariff. The release does not give the loan amounts, interest rates or eligibility criteria.
When will the Carer's Allowance and parental pay changes start?
The Budget is the next step. Prime Minister Andy Burnham said it would go further to give families and businesses the breathing space they need today while the government builds a stronger economy. Healey said conflict in the Middle East and Europe was pushing up everyday costs for families, and that the government could not control global events but could act where it could make a difference.
Several of the fixes still lack dates. The mileage rate above 10,000 miles, the Carer's Allowance taper and the parental pay extension are all announced without a start date in the release. Further detail may follow in the Budget documents, which had not been published when this article went live.
Separately, the government has announced the removal of gas standing charges, and we have explained what scrapping gas standing charges means for households.
Key Takeaways
- The government will lock in a 55p per mile tax free rate for the first 10,000 business miles and raise the rate beyond that from 25p to 35p, benefiting around three million people.
- Unpaid carers will keep part of their Carer's Allowance when they earn over the Weekly Earnings Limit, with £1 tapering away for every extra £1 earned.
- More than 150,000 additional parents a year, including self employed fathers and partners, will receive two weeks of pay worth up to £194 a week.
- Tariffs are being removed on more than 100 products, and the government says two tariff packages together should cut consumer costs by roughly £245 million to £595 million a year.
- The release does not give start dates for the Carer's Allowance taper, the extended parental pay or the higher mileage rate above 10,000 miles.
Sources & Further Reading
- GOV.UK: Everyday fixes to make life easier for millions of Britons Archived copy (OGL): archived page