Benefits claimants could see much of their rates increase this year cancelled out by rises in deductions. The DWP is set to increase benefit rates in April in line with September's CPI figure of 10.1%.
The news will come as a major relief to millions of those on low incomes who had been fearing a below-inflation increase to rates before Chancellor Jeremy Hunt announced the news in his autumn statement back in November. The average household on universal credit would be £65.49 better off a month as a result of the rise.
But deductions from benefits - money taken out of benefit payments to repay debts - will add up to an average of £62 per month from April, leaving people with just £3.50 extra, according to Citizens Advice Scotland. Money can be taken out of benefits to repay debts such as money owed on rent, energy or water bills, council tax, unpaid fines, and child maintenance.
