Amid all the shouting, baiting and arguing in the House of Commons yesterday, Chancellor Alistair Darling managed to put forward a series of changes which, whilst placing the country under record levels of public debt, he believes will help struggling families and kick-start the economy.

Whilst headline changes such as a reduction in VAT were the focus of much attention, one policy change that will provide considerable help to those currently with debt problems relates to the way in which mortgage lenders can start repossession proceedings.

Both the government and banks have been quick to assure homeowners that repossession is very much a “last resort” and yesterday’s announcement that mortgage lenders must wait a minimum of three months from the point that a borrower has problems with payments before starting repossession proceedings will be welcome.

Under the new scheme, debtors will be given time to make up any loan arrears that they may have and communicate with their lender to find a workable debt solution.

Other changes include:

VAT: The standard 17.5% rate of VAT will be cut to 15% for a period of 13 months from December 1 2008.

Excise Duty: The 2p increase in fuel duty, originally postponed when fuel prices reached record high levels, will be applied on Monday. Alcohol and tobacco products will also see increases.

Income Tax: A new 45% tax band will be applied for those earning in excess of £150,000 a year from 2011. For those on lower incomes, the tax rebate that was introduced following the abolition of the 10p tax band will be made permanent.

National Insurance: An increase in National Insurance by 0.5p to be introduced in 2011.

Pensions and Benefits: Increases to pensions and child benefits will to be brought forward by three months to January. There will be a one-off payment of £60 from January for single pensioners and £120 for couples. Pension credit will rise in April from £124 to £130 a week for individuals and from £189 to £198 for couples. The state pension will rise in line with the highest rate of inflation this year, producing a rise of £4.55 a week for a single person.

Energy: Energy regulator OFGEM will monitor changes in wholesale energy prices and pressure suppliers to pass on any reductions to consumers.