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4 changes: 2 additions & 2 deletions app/src/data/posts/articles/fuel-duty-cut-extension.md
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Expand Up @@ -6,14 +6,14 @@ Key figures:
- On 1 July 2027, the rate rises to 60.59p. From that date, on our assumption for April 2027, it follows the same path as before the Budget.
- With the VAT on the duty, a litre costs 3.6p less in January and February 2027, 6.0p less in March 2027 and 9.2p less from April to June 2027.
- A household that uses 1,000 litres of fuel a year, about 19 litres a week, pays £34 less in total: £12 in 2026-27 and £22 in 2027-28.
- PolicyEngine estimates that the measure costs £301 million in 2026-27 and £521 million in 2027-28 on fuel that households buy, and nothing in later years. For context, HM Treasury estimates that it reduces fuel duty receipts by £575 million and £780 million ([Budget 2026, Table 6.1](https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html), row 3).
- PolicyEngine estimates that the measure costs £301 million in 2026-27 and £521 million in 2027-28 on fuel that households buy, and nothing in later years. For context, HM Treasury estimates that it reduces fuel duty receipts by £575 million and £780 million ([Budget 2026, Table 6.1](https://assets.publishing.service.gov.uk/media/6ae187a2779378370fd80a9a/Table_6.1_and_6.2_Budget_2026_Policy_Decisions.xlsx), row 3).
- In 2027-28, household net income rises by £18 a year on average, from £12 in the lowest income decile to £24 in the ninth.

## What the Budget changes

Fuel duty on petrol and diesel has been 52.95p a litre since the 5p cut of March 2022. Before the Budget, the cut was due to end in two steps: the rate was to rise to 55.95p on 1 January 2027 ([SI 2026/164](https://www.legislation.gov.uk/uksi/2026/164), as amended by [SI 2026/555](https://www.legislation.gov.uk/uksi/2026/555/made)), and to return to 57.95p on 1 March 2027, the rate in [section 6 of the Hydrocarbon Oil Duties Act 1979](https://www.legislation.gov.uk/ukpga/1979/5/section/6) ([HMRC, Amended Fuel Duty rates: 2026 to 2027](https://www.gov.uk/government/publications/amended-fuel-duty-rates-for-2026-to-2027/amended-fuel-duty-rates-2026-to-2027)). Government policy since Budget 2025 was to uprate the rate by RPI from April 2027.

The [Budget 2026 document](https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html) keeps the 5p cut for six more months, to 1 July 2027, and moves the planned RPI increase to the same date. HM Treasury's [policy costings](https://www.gov.uk/government/publications/supporting-documents-for-budget-2026) set out what follows: on 1 July 2027, the rates rise by 5p a litre and by RPI, and from 1 April 2028 they rise by RPI each year. The Office for Budget Responsibility (OBR) puts the main rate after the July 2027 rise at 60.59p ([Economic and fiscal outlook](https://obr.uk/efo/economic-and-fiscal-outlook-october-2026/), October 2026, paragraph 3.19). The rate before the Budget from 1 April 2027 is our assumption; the appendix sets it out.
The [Budget 2026 document](https://www.gov.uk/government/publications/budget-2026-document/budget-2026-html) keeps the 5p cut for six more months, to 1 July 2027, and moves the planned RPI increase to the same date. HM Treasury's [policy costings](https://assets.publishing.service.gov.uk/media/6ae1883fe4367e5c8b0467df/AB26_Policy_Costing.pdf) set out what follows: on 1 July 2027, the rates rise by 5p a litre and by RPI, and from 1 April 2028 they rise by RPI each year. The Office for Budget Responsibility (OBR) puts the main rate after the July 2027 rise at 60.59p ([Economic and fiscal outlook](https://obr.uk/efo/economic-and-fiscal-outlook-october-2026/), October 2026, paragraph 3.19). The rate before the Budget from 1 April 2027 is our assumption; the appendix sets it out.

| Period | Days | Rate before the Budget | Rate after the Budget | Duty saved per litre | Duty and VAT saved per litre |
| ----------------------------- | ---- | ---------------------- | --------------------- | -------------------- | ---------------------------- |
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2 changes: 1 addition & 1 deletion app/src/data/posts/articles/pension-tax-allowance.md
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Expand Up @@ -991,7 +991,7 @@ The Treasury's costing (Budget 2026, Table 6.1, row 52) is on a National Account

### Assumptions and limitations

- DWP has not yet published the 2027-28 Pension Credit rates. The minimum guarantee rises with earnings (Social Security Administration Act 1992, section 150A), and the April 2027 State Pension rise of 3.9% is above September 2026 CPI inflation (3.5%), so it reflects earnings growth. For the household examples, we apply 3.9% to the 2026-27 rate of £238 a week, which gives £247. PolicyEngine UK's own projection on the October 2026 forecast is £245, uprated by lagged CPI; the household calculator in PolicyEngine's Autumn Budget dashboard uses that guarantee, so its figures for a Pension Credit claimant differ from those here, by up to the full PTA for claimants near the guarantee.
- DWP has not yet published the 2027-28 Pension Credit rates. The minimum guarantee rises with earnings (Social Security Administration Act 1992, section 150A), and the April 2027 State Pension rise of 3.9%, to the explainer's £250.70 a week, is growth in total average weekly earnings in May to July 2026 ([ONS](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/averageweeklyearningsingreatbritain/september2026)), which is above September 2026 CPI inflation of 3.5% ([ONS](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/september2026)). For the household examples, we apply 3.9% to the 2026-27 rate of £238 a week, which gives £247. PolicyEngine UK's own projection on the October 2026 forecast is £245, uprated by lagged CPI; the household calculator in PolicyEngine's Autumn Budget dashboard uses that guarantee, so its figures for a Pension Credit claimant differ from those here, by up to the full PTA for claimants near the guarantee.
- The explainer bases the threshold on the State Pension received in the tax year; we use 52 weeks. The published rates, and the number of payments in a tax year, may differ. The explainer does not state how HMRC rounds the PTA in later years; we round up to the pound, as for 2027-28.
- We apply the PTA to the final income tax liability; the Finance Bill 2026-27 will set the legal order of steps. People who transfer part of their Personal Allowance through the Marriage Allowance can still owe tax with the PTA.
- PolicyEngine UK treats a person as over State Pension age if they reach it by 6 October. The PTA also covers people who reach State Pension age later in the tax year. Every example pensioner reached State Pension age before the tax year, so this does not affect them.
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