On Monday, benefits and pensions will increase by 3.1%, which is technically the biggest rise to welfare payments for many years but will leave people worse off. The basic Universal Credit rate rises by £10.07 a month and state pensions by £5.55 a week.
The rises are calculated based on inflation back in September 2021, which was 3.1%. Inflation has now hit more than 6% however, and is expected to peak at 8.7% due to other factors, such as the £693 rise in energy bills.
This will mean a huge cut in the value of benefit payments. According to the Office for Budget Responsibility, there will be a £12 billion fall in the real value of benefits in 2022-2023.
