The Department for Work and Pensions has revealed it will not bring forward any uplift to benefits despite soaring inflation. Millions of households face increasing pressure to afford their bills as the UK grapples with rising costs across the board.
Consumer price inflation (CPI) is at a 40-year high after hitting 9.4% in June, according to the Office of National Statistics. It previously hit its highest levels since 1982 in April when it reached 9% before rising to 9.1% in May. This means the prices of products and services in June cost 9.4% more than they did in June 2021. The CPI is calculated by looking at the prices of a variety of items and services and seeing how their prices change over time.
Benefits and pension rates are reviewed in November each year using the CPI figure from September to decide how much to increase payments by. The new rates come info effect each April at the start of the financial year, and in April this year benefits increased 3.1%. There have been calls in recent months for the government to bring forward its regular rates review to help those hardest hit by the cost of living crisis, reports the Daily Record.
Read more: 400,000 households in Wales to get £200 towards their energy bills this winter
Earlier this week, Labour’s shadow justice minister Afzal Khan asked minister of state for disabled people Chloe Smith if she would "make it her policy to increase personal independence payments and other associated benefits in line with inflation." However, Ms Smith said the review would not take place until later in the year as normal.
She said: "The secretary of state for work and pensions is required to undertake an annual statutory review of benefits and pensions. She uses the CPI in the year to September to measure inflation.
"Personal independence payments (PIP) alongside the other extra costs benefits available to people who have needs arising from a long-term health condition or disability – attendance allowance (AA) and disability living allowance (DLA) – has been continuously updated in line with inflation since its introduction.
"The secretary of state’s review for 2023/24 will commence in the autumn and her decisions will be announced to parliament in November in the normal way. Those who were entitled to AA, DLA or PIP and being paid on May 25 will also be entitled to a disability cost of living payment of £150, due to be paid in September, in addition to any other cost of living payments they may be entitled to."
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