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The Government has said it will extend the freeze on NHS prescription charges ahead of its announcement of the Budget on Wednesday.

The chancellor Rachel Reeves (pictured) said the charge will stay at £9.90 and save patients about £12 million next year. While the decision will be welcomed by patients, it may raise eyebrows given the Government is looking for ways to generate revenue to reduce the deficit.

Three-month and annual prescriptions prepayment certificates will also be frozen for 2026-27.

Labour, who froze the prescription charge during last year’s Budget, also said its NHS Low Income Scheme will continue to help people meet prescription costs, particularly pensioners, students and those who receive state benefits or live in care homes who receive free prescriptions.

Around 89 per cent of prescriptions in England are dispensed free of charge to children, over-60s, pregnant women and those with certain medical conditions.

“Extending the freeze on prescription costs is part of this Government’s wider action to ease the cost of living, having already rolled out free breakfast clubs, increased the national living wage worth an extra £1,400 per year for millions of working people and protected the pensions triple lock,” Labour said.

The health secretary Wes Streeting said the decision to freeze prescription charges “will put money back into the pockets of millions of people”.

“We’ve already made the made the morning-after pill available free of charge at all pharmacies, and as well as keeping prescriptions under a tenner, we’re making sure you can get the care you need closer to home to keep travel costs down,” he said.

“We are fixing our NHS and making it so it’s once again there for you when you need it.”