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UK finance minister Reeves announces measures to ease cost of living

Published by Global Banking & Finance Review

Posted on May 20, 2026

2 min read

· Last updated: May 20, 2026

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UK Finance Minister Reveals New Cost of Living Relief including Free Bus Fares

Key Announcements on Cost of Living Measures

LONDON, May 20 (Reuters) - British finance minister Rachel Reeves will on Thursday set out measures to try to ease the cost of living, including free bus fares for children and possible reductions on some food tariffs.

Free Bus Fares for Children

Eligibility and Duration

• Children aged five to 15 in England will travel free on participating local buses throughout August. Government is committing £100 million to fund the plan

Reductions on Food Tariffs

Products Affected

• Government is also seeking to cut tariffs on more than 100 types of products including biscuits, chocolate and dried fruit and nuts

Expected Consumer Benefits

• Full list of products, expected to provide £150 million benefit for consumers, due next week

Political Context and Additional Measures

Labour Party Government's Efforts

• Thursday's speech in parliament is part of efforts to help revive the Labour Party government's fortunes after heavy losses in recent local elections that have put Prime Minister Keir Starmer's position under threat

Recent Announcements

• Government on Wednesday announced tax breaks on motor fuel and for hauliers

(Reporting by William James; Editing by Alex Richardson)

Key Takeaways

  • Children aged 5–15 in England to get free bus travel on participating local services in August, funded by £100 million
  • Tariffs on over 100 food items—including biscuits, chocolate, dried fruits and nuts—under review, with full product list and estimated £150 million consumer benefit due next week
  • These measures complement recent initiatives—from energy bill cuts to voluntary supermarket price freezes and an anti‑profiteering framework—aimed at reducing household costs amid cost‑of‑living pressures

Frequently Asked Questions

What cost of living measures has UK finance minister Rachel Reeves announced?
Rachel Reeves announced free bus fares for children in England during August and plans to cut food tariffs on over 100 products.
Who benefits from the new free bus fare policy in England?
Children aged five to fifteen in England can travel free on participating local buses throughout August.
Which food products may see tariff reductions?
Tariff reductions are planned for more than 100 products, including biscuits, chocolate, and dried fruits and nuts.
How much is the UK government investing in the free bus fare plan?
The government is committing £100 million to fund the free bus fares for children.
When will the full list of products benefiting from tariff cuts be released?
The full list of products eligible for tariff reductions is expected to be announced next week.

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