Everyday fixes to make life easier for millions of Britons

The Chancellor unveiled five measures to reduce everyday costs for households, including a 15-year high increase in mileage rates for work-related driving and new Warm Homes loans for clean energy installations. The package targets families, workers and unpaid carers, aiming to ease pressures from food, fuel and family expenses. The government states these changes will provide immediate financial relief while supporting long-term economic growth.

A new Warm Homes loans scheme will offer low-interest and interest-free finance for solar panels, batteries and heat pumps across the UK, including Scotland, Wales and Northern Ireland. The government says this will help homeowners cut energy bills by installing clean technology, with loans structured to reduce upfront costs. The scheme follows calls from campaigners for greater support to improve household energy efficiency.

The government will increase mileage rates for the first time in 15 years, raising the tax-free rate to 55p per mile for the first 10,000 business miles and to 35p for miles beyond that. Around 3 million workers are expected to benefit, with additional tax savings of up to £300 annually for those driving 15,000 business miles. The change aims to support employees and self-employed people who rely on their vehicles for work.

Reforms to Carer’s Allowance will remove a long-standing cliff edge that penalises unpaid carers for earning slightly more, allowing them to keep some allowance while increasing their income. The government says this will help carers avoid financial losses when taking on extra hours or modest pay rises. The changes follow years of campaigning from carer support groups who highlighted the unfair impact on household budgets.