Chancellor Rachel Reeves is set to announce a package of measures to help households manage rising costs linked to the economic impact of the Iran conflict. Speaking in the House of Commons on Thursday, Reeves will outline plans designed to reduce pressure on families as inflation is expected to climb later this year.
A central feature of the package is free bus travel for children aged 15 and under in August. The initiative forms part of a wider programme branded the “Great British summer savings scheme”, which the Treasury says is intended to help families through the school holidays.
Ahead of her statement, Reeves said protecting households from higher living costs remains her main priority and that the scheme is designed to help families enjoy the summer without added financial strain.
The announcement follows measures unveiled by Prime Minister Keir Starmer on Wednesday. The Government will delay planned fuel duty increases due in September and December, extend the fuel duty freeze until the end of the year, and introduce a 12-month vehicle tax holiday for lorry drivers. Farmers will also see a one-third reduction in duty on red diesel.
However, some thinktanks, including the Resolution Foundation, have criticised the fuel duty changes, arguing that wealthier households are likely to benefit most. The Treasury estimates the support package for motorists will cost around £400 million, although ministers have yet to confirm how it will be funded.
Reeves is also expected to launch consultations on removing tariffs on selected food imports, including biscuits, chocolate, and dried fruit, to reduce prices for shoppers. Earlier proposals to secure voluntary supermarket discounts on essential foods were dropped following opposition from retailers.
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