Key facts
- UK government cuts import tariffs on over 100 grocery products.
- Fuel duty cut for petrol and diesel extended until year-end.
- Red diesel duty cut by over a third for farmers until year-end.
- 12-month vehicle excise duty holiday for HGVs announced.
- VAT reduced to 5% on summer activities from June 25 to September 1, 2026.
- Free bus travel for children aged 5-15 in England during August 2026.
- Crisis and resilience fund available for financial hardship, running until April 2029.
The UK government has introduced a series of measures aimed at alleviating the cost of living pressures faced by households. These initiatives include reducing import tariffs on over 100 grocery items, such as dried fruits, nuts, biscuits, and chocolate, to potentially lower supermarket prices. The 5p cut to fuel duty on petrol and diesel has been extended until the end of the year, and red diesel duty is cut by over a third for farmers. Additionally, a 12-month vehicle excise duty holiday for HGVs is being implemented, expected to save hauliers approximately £600 per lorry. From June 25 to September 1, 2026, VAT on summer activities, including children's meals, family tickets for entertainment, and admission to attractions like theme parks and museums, will be reduced from 20% to 5%. The Treasury estimates significant savings for families during this period. For children aged five to 15, free unlimited bus travel will be available on participating local services throughout August 2026. A new 'crisis and resilience fund' has been launched, running from April 2026 to April 2029, to provide financial assistance for those facing severe hardship, with urgent applications typically processed within 48 hours. Applications for this fund are managed by local councils.