Carers' allowance cliff edge to end in Chancellor's five everyday fixes

Unpaid carers will no longer lose their whole Carer's Allowance for earning a penny too much, workers who drive for their jobs will get more tax-free mileage, and more than 100 everyday foods will become cheaper to import, under five "everyday fixes" announced by the Chancellor, John Healey, ahead of tomorrow's Budget.

The package also extends paternity pay to more self-employed fathers and partners, and adds hundreds more Post Office parcel drop boxes in time for Christmas.

Ending the carers' cliff edge

At the moment, unpaid carers who earn just a penny over the weekly earnings limit, equivalent to 16 hours at the National Living Wage, lose their entire Carer's Allowance. Under the change, only £1 of support will taper away for every extra £1 earned.

Kirsty McHugh, chief executive of the Carers Trust, said: "It is great news that the Government is acting to remove the Carer's Allowance cliff edge. This has long been a concerning part of our benefits system, penalising thousands of carers who are juggling paid work with their caring role."

Emily Holzhausen, director of policy at Carers UK, said many carers had been giving up part-time work or turning work down "because they cannot risk going over the limit and losing 100% of their Carer's Allowance."

More for people who drive for work

The tax-free mileage rate of 55p a mile for the first 10,000 business miles will be made permanent, and the rate above 10,000 miles will rise from 25p to 35p. About three million employees and self-employed people who use their own vehicles for work, including nurses, care workers and builders, are expected to benefit. The government says someone driving 15,000 business miles could save up to £300 more in tax a year.

Cheaper beans and chocolate

Import tariffs will be removed on more than 100 products, from family favourites such as baked beans, chocolate and gherkins to fertiliser for farmers and kerosene heating oil. Together with earlier tariff suspensions, the government says households could save up to £21 a year on their food shop.

Paternity pay and parcels

Parental pay will be extended to more than 150,000 extra parents a year, including self-employed dads and partners, giving them two weeks of support currently worth up to £194 a week. George Gabriel, co-founder of The Dad Shift, said it "will make a real difference to tens of thousands of expecting families each year."

Hundreds more Post Office drop boxes will take the total to 1,000, so people can send and return parcels without queuing at a counter.

"A bit of breathing space"

Mr Healey 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."

The Prime Minister, Andy Burnham, said the changes would help "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". The full Budget follows tomorrow.