
Many people on low incomes will have breathed a sigh of relief when the UK Chancellor, Jeremy Hunt announced, in his autumn statement on November 17 2022, that he would be increasing benefits by 10.1% in 2023. This is almost in line with the rate of inflation.
The past decade of welfare reform, however, combined with low pay has meant that even before the cost of living crisis, many people could not afford the basics of food, heating, rent, shoes, and school uniforms. Hunt’s decision to match inflation is laudable, but it isn’t enough to make up for the years of cuts to the real value of benefits in the UK. And the lower levels of government support he announced, in terms of meeting rising energy costs, will further impact poorer households: energy prices are set to be three times higher than they were two years ago.