In this edition’s eNews, we look at the business response to the Milburn review, a Child Benefit reminder for new parents, the latest advisory fuel rates, and a funding boost to debt services for small businesses and the self-employed. There is also a call for a cut to the VAT rate on hospitality businesses and a warning on pensions savings to update you on.
- Milburn review ‘must be a wakeup call’
- New parents urged to claim Child Benefit for their baby now
- Advisory fuel rates for company cars
- Small businesses to benefit from strengthened debt advice services
- Hospitality sector calls for 10% VAT rate
- Threequarters of workers not on track for ‘moderate’ pension income
Milburn review ‘must be a wakeup call’
Alan Milburn’s Young People and Work diagnostic report must act as a ‘wakeup call’ for the UK government, warns the British Chambers of Commerce (BCC).
The report argues that the UK faces a ‘generational fault line’ in the transition from education into work.
It sets out a comprehensive diagnosis of how systems designed to support young people — education, health, welfare and the labour market — are failing to work together.
The report makes clear that this is not a temporary problem. The NEET rate (not in education, employment or training) has remained persistently high for decades and is becoming more structural.
Today’s challenge is not just youth unemployment, but long-term detachment from the labour market, with many young people not seeking work at all.
Importantly, the Review rejects the idea that young people lack motivation, or employers don’t want to hire young people. Instead, it finds that systems have failed to adapt to a generation facing new pressures, from mental ill-health to a changing labour market.
Shevaun Haviland, Director General of the BCC said:
‘The Milburn report must be a wakeup call for policymakers about the crisis of young people not in employment, education and training.
‘Unless urgent comprehensive action is taken a whole generation is at risk of being cut loose from society, and economic growth will be hampered.
‘The report accurately diagnoses the problem, with suggested solutions to come later in the year. The issues identified in the Milburn Review have long been reported by businesses. It is important that government urgently takes steps to address these.’
Internet link: BCC website BCC website
New parents urged to claim Child Benefit for their baby now
One in three new parents are missing out on Child Benefit payments in their baby’s first year, according to HMRC’s figures.
The tax authority is urging parents who welcomed a baby this spring to claim now via the HMRC app or online at GOV.UK.
HMRC’s data shows that while more than 6.8 million parents received Child Benefit in the year to August 2025, only 68.8% of them claimed the crucial government support before their baby’s first birthday.
It says that more than 140,000 babies were born between April and June last year and while many parents are enjoying new beginnings this spring, the latest statistics show thousands of families could be missing out on much-needed cash by delaying their claim.
Child Benefit is worth £27.05 per week – or £1,406.60 a year – for the eldest or only child and £17.90 per week – or £930.80 a year – for each additional child, with no limit as to how many children parents can claim for.
Myrtle Lloyd, HMRC’s Chief Customer Officer, said:
‘Spring is a wonderful time to welcome a baby and claiming Child Benefit as soon as possible means your family can benefit from much-needed financial support.
‘It is quick and easy to claim Child Benefit via the HMRC app at a time that suits you.’
Internet link: HMRC press release
Advisory fuel rates for company cars
New company car advisory fuel rates have been published and took effect from 1 June 2026.
The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.
The advisory fuel rates for journeys undertaken on or after 1 June 2026 are:
| Engine size | Petrol |
| 1400cc or less | 14p |
| 1401cc – 2000cc | 17p |
| Over 2000cc | 26p |
| Engine size | Diesel |
| 1600cc or less | 15p |
| 1601cc – 2000cc | 17p |
| Over 2000cc | 23p |
| Engine size | LPG |
| 1400cc or less | 11p |
| 1401cc – 2000cc | 13p |
| Over 2000cc | 21p |
HMRC guidance states that the rates only apply when you either:
- reimburse employees for business travel in their company cars
- require employees to repay the cost of fuel used for private travel.
You must not use these rates in any other circumstances.
The Advisory Electricity Rate for fully electric cars is below. Electricity is not a fuel for car fuel benefit purposes.
| Advisory Electricity Rate | |
| Home Charger | 7p |
| Public Charger | 15p |
If you would like to discuss your company car policy, please contact us.
Internet link: GOV.UK AFR
Small businesses to benefit from strengthened debt advice services
Small businesses and the self-employed struggling with their finances to receive a helping hand as debt advice services are strengthened, the Treasury has announced.
The Treasury is making a £4 million funding boost over three years for business debt advice services support.
The funding will go towards expanding access to expert support to help businesses get back on track. The Treasury says this will benefit an additional 16,000 businesses over the next three years to total 75,000 businesses.
The Treasury says the funding builds on the success of the Business Debtline delivered by Money Advice Trust
There will be an additional £2 million funding this year to help modernise debt advice, it added.
Rachel Blake, Economic Secretary to the Treasury, said:
‘From the plumber fixing your radiator to your local café, small businesses are the backbone of our economy, and we know they sometimes need a helping hand when times get tough.
‘We’re building on the success of our expert debt services to help tens of thousands more get back on their feet.’
Internet link: GOV.UK
Hospitality sector calls for 10% VAT rate
Hospitality businesses, teams and organisations are being urged to sign a new petition calling for the government to cut the VAT rate for the sector to 10% by UKHospitality.
The trade group has launched #VATsTheProblem, a sector-wide campaign asking for the government to cut the rate of VAT for hospitality businesses, so it is in line with European levels.
UKHospitality is urging the entire sector to back its call by signing a new petition, with the aim to get a million signatures.
Hospitality groups, including the British Beer and Pub Association, the British Institute of Innkeeping and CODE Hospitality, are also supporting the campaign.
Celebrity chef and business owner Tom Kerridge said:
‘Our sector is under huge pressure. We know it. We live and breathe it every day.
‘We know that the key to unleashing hospitality’s potential to grow and thrive into the future comes through a VAT cut. We’re making sure government knows that too.
‘This is a nationwide campaign with ambassadors big and small spreading the word to everyone that will listen, all asking for the same thing; a cut to hospitality’s VAT to 10%.’
Internet link: UKHospitality website
Three quarters of workers not on track for ‘moderate’ pension income
Three quarters of UK workers are not on course to save enough for a ‘moderate’ lifestyle when they retire, according to a report by Pensions UK.
The report says a moderate lifestyle will cost £32,700 for one person and £45,400 for two – but estimated just 23% of the working population were on course to reach such a level.
According to the report, a minimum retirement lifestyle costs around £13,900 annually for a one-person household and £22,500 for two people.
Meanwhile, a comfortable lifestyle in retirement is estimated to cost £45,400 for a single person and £62,700 for a couple. Pensions UK said only 9% of workers were in line to get to that level.
Zoe Alexander, Executive Director of Policy and Advocacy at Pensions UK, said:
‘Today’s saving levels will not be enough for the retirement they expect. It is expected that around 82% of people reaching a minimum standard of living, but far fewer will go beyond that.
“That is out of step with what people expect for their future. Without action, too many risk facing a cliff-edge drop in income when they stop work. The government is right to be considering whether minimum contributions need to rise through the work of the Pensions Commission.
‘We also encourage people to speak to their employer and see whether the organisation is prepared to support them to save above the minimum, such as higher rates of matching pension contributions. This could help ‘bridge the gap’ until policy catches up and we see higher savings levels set in legislation.’
Internet link: Pensions UK website
For information of users: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm.