The contactless payment limit will be increased from £45 to £100 (Picture: Shutterstock / Jacob Lund)
It will be the second rise to the limit, which shot up from £30 to £45 at the start of the Covid pandemic last April.
Experts believe the move will provide a much-needed boost to the retail sector as shops welcome customers back on April 12.
During his speech, the Chancellor will highlight the popularity of ‘pinging’ payments, as shoppers continue to shun cash.
Speaking to the Evening Standard, he said: ‘London’s retail sector is famous across the world, with Oxford Street, Covent Garden and Westfield seen as global destinations for shopping.
‘As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping, providing a welcome boost to retail that will protect jobs and drive growth across the capital.’
The furlough scheme, which is due to end in April, will be extended until the end of September in the Budget today.
Around 3.8 million people were on furlough by the end of last year, with this number hitting a peak of 8.9 million last May.
Chancellor Rishi Sunak will announce the news in the Budget today (Picture: PA)
As the pandemic leaves many across the country struggling, the Government is also expected to extend the £20-per-week uplift to Universal Credit for six months.
Pubs, restaurants and shops hit hard over the last year will be helped by a £5 billion grant scheme as the third national lockdown begins to ease.
Each premises could receive up to £6,000, while hospitality, hotels, gyms and personal care and leisure firms, could receive up to £18,000 as they are due to reopen later.
The Chancellor is likely to unveil a mortgage guarantee scheme that will help home buyers purchase properties worth up to £600,000 with a deposit of just 5%.
He could extend the stamp duty holiday on homes worth up to £500,000, currently set to end in March.
Mr Sunak is expected to start his speech at around 12.30pm today, immediately after Prime Minister’s Questions.
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