Cost of living measures: Will the government’s latest support actually help you?

The government’s latest cost of living announcement is clearly aimed at showing it understands the pressure households are still under, but if you’re already struggling with rising bills, you might be wondering whether any of this will actually make a real difference.

The changes include a temporary VAT cut on family leisure activities, free bus travel for under-16s during August, a continued freeze on fuel duty, and lower import tariffs on some food products.

On paper, it sounds positive. Cheaper family days out, lower travel costs and avoiding another rise at the petrol pump will absolutely help some households over the summer. But when you look a little closer, the bigger question is whether these measures tackle the costs that are really impacting consumers right now.

What’s actually changing?

The headline announcement is a temporary VAT reduction from 20% to 5% on selected summer activities including cinemas, theme parks, zoos and some restaurant meals for children.

The government says this is designed to help families through the school holidays and encourage spending across the UK economy.

Alongside this, ministers have confirmed:

• Free bus travel for under-16s in England during August
• A freeze on fuel duty
• Reduced tariffs on some imported food and household goods
• A higher tax-free mileage allowance for workers who use their car for work

If you’ve got children at home over the summer holidays, you’ll probably welcome anything that makes days out slightly more affordable and with fuel prices still unpredictable, avoiding another duty increase matters too.

But these savings may feel fairly small compared to the financial pressures you’’re dealing with every month.

The problem is your biggest bills aren’t getting cheaper

While cheaper cinema tickets are nice, they don’t solve the bigger issue most households are facing in that the essentials still cost far more than they did a few years ago. Food shopping remains expensive. Energy bills are still much higher than pre-crisis levels and mortgage rates and rents continue to put huge pressure on household budgets.

Recent figures show inflation may be easing slightly overall, but consumers are still feeling the impact of cumulative price rises across everyday essentials.

So while these new measures might help you save a little money during the summer, they don’t really change the long-term affordability problem many consumers are dealing with.

That’s likely to be one of the biggest criticisms of the measures –  it focuses more on easing short-term pressure rather than tackling the root causes of the cost of living crisis.

Is it still worth taking advantage of?

Absolutely. If you can benefit from free travel, discounted activities or lower transport costs, it makes sense to use them. For families already carefully budgeting summer spending, even small savings can help.

But it’s also important not to see this as a sign the wider financial squeeze is over. Many households are still relying on credit cards, overdrafts or Buy Now Pay Later services just to cover everyday costs, others are falling behind on bills or cutting back on essentials just to stay afloat each month.

What can you do if you’re still struggling?

If rising costs are continuing to put pressure on your finances, there are a few things worth checking:

• Compare your broadband, insurance and energy deals regularly
• Review subscriptions and recurring payments
• Speak to lenders early if you’re struggling with repayments
• Check whether you qualify for local council support schemes or benefits
• Challenge unfair charges, billing errors or poor service when things go wrong

Financial pressure often goes hand-in-hand with disputes over bills, cancelled services, travel disruption and rising household costs. While temporary government support may help at the margins, Resolver can help to understand your consumer rights and offer simple and accessible routes to resolve problems when things go wrong.

And while the government’s announcement may offer some temporary breathing room, many consumers will still feel like the real cost of living challenge hasn’t gone away.

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