Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment she has made of the effect of fuel taxation policy on low income households.

The Chancellor considers a wide range of impacts when taking decisions on tax policy. At Budget 2025, the Government announced that the 5p cut in fuel duty would be extended until the end of August 2026, with rates then gradually returning to March 2022 levels by March 2027. The planned increase in line with inflation for 2026/27 will also not take place, with RPI uprating resuming from 2027/28 onwards.

Since Autumn Budget 2024, the Government's decisions to freeze fuel duty will save the average motorist over £90 – or 11 pence per litre - compared to the plans inherited from the previous government.

The Government published distributional analysis on decisions taken at Budget 2025, including fuel duty, at GOV.UK: :

https://assets.publishing.service.gov.uk/media/69269c6222424e25e6bc31bb/Impact_on_households.pdf