Parental pay will be extended to the self-employed father and partners in PM's 'everyday fixes'
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Parental pay will be extended to self-employed fathers and partners in a package of measures to ease the cost of living.
The Treasury also said it would try to cut taxes for those who drive for work and slash tariffs on some foods.
But the weekly shop will be just 40p a week cheaper under plans to remove import levies on foods such as baked beans and chocolate.
It comes after the Joseph Rowntree Foundation warned families will be up to £770 a year worse off in this parliament.
Reports also suggest the Chancellor will increase the national living wage by nearly 4 per cent but slow the rise for young people amid warnings they are priced out of jobs.
The national living wage for those 21 and over is set to rise from £12.71 to £13.20, according to The Times – an increase of 3.9 per cent.
But the national minimum wage, which applies to those aged 18 to 20, will rise broadly in line with the rate for older workers to £11.27 an hour from £10.85.
It spells the end of Labour's manifesto pledge to bring the minimum wage for youngsters into line with the living wage in this parliament.
Chancellor John Healey will present the first budget under Prime Minister Andy Burnham on Wednesday
In an announcement ahead of Wednesday's Budget, parental pay will be extended to a further 150,000 fathers or partners.
This includes the self-employed who were not previously eligible – they will now receive two weeks of support worth nearly £400.
Support will also be given to farmers facing higher fertiliser bills and households that rely on kerosene heating oil.
Other interventions include attempts to help those who drive for work by not increasing taxes on the mileage-free rate. The Treasury said it would fix the tax-free rate at 55p per mile for the first 10,000 miles and increase the rate above this from 25p to 35p per mile.
Unpaid carers will no longer lose their entire allowance for earning a penny over the earnings limit, the Treasury said.
The changes – described as 'everyday fixes' – are part of Andy Burnham's attempts to help give people 'breathing space', including axeing the 5 per cent VAT on electricity bills.
But Shadow Chancellor Andrew Griffith said: 'Rampant borrowing, soaring taxes and an utter inability to cut spending mean inflation has already wiped out the benefits of Burnham's "everyday fixes".'
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