The freeze was initially put in place until 2028 by the previous government, but was extended in today’s budget.

Reeves said she would continue the freeze for a further two years, meaning the first £325,000 of an estate will remain tax-free.

This amount rises to £500,000 where a residence passes to direct descendants, and £1 million where it passes to a surviving spouse or civil partner.

“Only 6 percent of estates will pay inheritance tax this year,” she said.

“I understand the deep desire to pass on savings to children and grandchildren, which is why I am adopting a balanced approach in my package today.”