There may be an option to defer the levy cost on certain properties until the owner’s death or a move, to avoid selling homes.

Abolishing the cap is pitched as reducing long-term costs, removing the so-called rape clause, and potentially boosting educational outcomes and lifetime earnings, with government documents tying it to higher future tax receipts.

Reeves unveils a welfare reform package centered on stamping out universal credit fraud and extending targeting reviews, including scrapping the two-child limit and aiming to save about £1.2 billion by 2031 as part of broader Budget measures.

Public and party reaction is mixed: backbench Labour MPs welcome abolition of the two-child limit, while concerns about public backlash persist amid polling suggesting voters prefer spending cuts over tax hikes and skepticism about Labour’s welfare handling.

Analysts warn that extending thresholds freezes could effectively increase National Insurance exposure and drift away from Labour’s manifesto promises if thresholds stay fixed while taxes rise.

The Budget signals a shift toward a package of smaller revenue-raising measures after scrapping a general income tax rise, with a mix of tax increases and other steps under consideration to fund welfare and public services.

The welfare reforms are linked to past Labour rebellions and tie into broader Timms and Milburn reviews on disability benefits and NEETs, signaling a comprehensive reform agenda.

The crackdown aligns with Labour policy ideas, including banks monitoring pensioner accounts to detect erroneous payments under a broader fraud and recovery framework debated in Parliament.

Overall narrative frames Reeves’s welfare reform as a value-driven move to protect the economy, reassure markets, and tackle child poverty while balancing political pressures and public opinion.

The Budget is expected to freeze rail fares and prescription fees, roll back some electricity levies, and introduce targeted tax rises such as a higher surcharge on expensive properties to fund welfare and services.

Budget dynamics reflect a weak economy, persistent inflation, and potential productivity downgrades, with Reeves trying to balance books amid fiscal pressure.

The government plans a stronger state pension increase to win back support, reaffirming the triple lock and delivering above-inflation rises for millions of pensioners next April.