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Evening Standard
Evening Standard
World
Lola Christina Alao

Autumn statement 2023 universal credit: How will benefits change?

The Chancellor, Jeremy Hunt, has delivered his autumn statement in the House of Commons, which contained significant changes to benefits that will affect how much money some families receive each month.

In the statement on Wednesday, Mr Hunt laid out a list of economic predictions that show anaemic growth for the next three years, coupled with real-terms spending cuts, which critics said will put further pressure on struggling public services.

“Taken together we will increase business investment in the UK economy by around £20 billion a year over the next decade and get Britain growing,” Mr Hunt said.

But Shadow Chancellor Rachel Reeves said Britons are "worse off" after 13 years of the Conservatives being in power and, even with the fall of inflation, "prices are still rising in the shops, energy bills are up and mortgage payments are higher".

Mr Hunt recently warned that benefits "coasters" would lose free prescriptions if they "refuse" to take a job. The move was launched before the autumn statement, and he described it as necessary to stop “anyone choosing to coast on the hard work of taxpayers”.

Here is what else we know about how benefits will change.

How will benefits change?

The chancellor announced a benefits crackdown, and stricter regulations that target those deemed not to be doing enough to find employment. 

He also confirmed that the state pension will rise by 8.5 per cent and benefits, including universal credit, will rise by 6.7 per cent in April next year. And an increase for the millions of working age people on benefits has been confirmed.

Welfare payments are uprated every April, in line with the inflation rate the previous September; however, there had been speculation that Mr Hunt would link the increase to October's lower figure.

This means universal credit payments will rise by 6.7 per cent next April rather than 4.6 per cent.

The chancellor said this will mean an increase of £470 a year for five and half million households.

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