Burnham Announces Cost-of-Living Fixes Ahead of Wednesday Budget

Prime Minister Andy Burnham and Chancellor John Healey announced a package of cost-of-living measures and everyday fixes on October 27, ahead of Wednesday's Budget. A central reform replaces the Carers' Allowance earnings cliff edge with a taper system, reducing payments by £1 for every £1 earned above the threshold to prevent the sudden loss of all benefits. Martin Lewis, founder of Money Saving Expert, welcomed the move but warned that IT system overhauls could delay implementation until 2030/31.

Other confirmed measures include making the 55p-a-mile tax-free business mileage allowance permanent for the first 10,000 miles and increasing the rate for subsequent miles from 25p to 35p. The government will scrap tariffs on over 100 food products, including chocolate and baked beans, and kerosene to lower household costs. Additionally, parental pay will expand to include over 150,000 parents, including self-employed fathers, and hundreds of new Post Office parcel drop boxes will be installed.

Separately, the government allocated £432 million to tackle homelessness by Christmas. Unconfirmed reports suggest the upcoming Budget may also include a national living wage increase to £13.20 an hour and a fuel duty freeze at 52p per litre due to the war in Iran.