Theresa May is aiming to save money by renegotiating her Brexit deal with the European Union, the Chancellor is to unveil a £5.4bn scheme for those who have taken out loans to fund their travel, property and child care.

The £5,000 grant will be made available to anyone who is in receipt of an income-based loan.

It will be available to people who have a minimum income of £26,250 a year, and those earning more than £150,000 a year.

The scheme is part of the Government’s ambitious Brexit strategy, which aims to make the UK a net exporter of goods and services.

The Government has also pledged to invest £1bn in the NHS.

Mr May is expected to announce the new grant on Thursday, with the first recipients to get it on 1 April.

Theresa Minster has insisted that the scheme will help people pay off their loans and will be paid back in full after five years.

The grant will not be available for those making more than the minimum income, but those with a minimum annual income above £100,000 can apply to have their repayments covered.

The loan guarantee is intended to help people with lower incomes who have had to borrow money to get by.

The aim is to give the Government an alternative source of income and will not affect people earning more, Mr May said.

The new grant will replace the current UK Government grant scheme, which has been in place since 2010.

The government has promised to create up to 10 million new jobs, with thousands more due to be created in the coming years.

It has also announced £2bn of new infrastructure spending to improve the country’s roads, railways and ports.