The state pension and certain benefits have risen by 3.1% from Monday, April 11, but economists have warned the uplift is not enough to offset the cost-of-living crisis. Rises are based on the consumer prices index (CPI) measure of inflation calculated in September last year but current inflation levels are 6.2% and expected to hit more than 8% later this year due to soaring energy bills.
The changes mean the basic state pension will rise by £4.25 a week to £141.85 a week, with the full state pension going up £5.55 a week to £185.15. A single person aged 25 will see their universal credit allowance rise from £324.84 to £334.91 a month, or £4,019 a year, and child benefit rises 68p a week for the eldest child.
Disability allowance is also going up by 3.1% and will automatically change for recipients. But Tom Selby, head of retirement policy at investment firm AJ Bell, warned: “When is a pay rise not really a pay rise? When the cost of the things you buy are increasing by more than the extra cash you’re receiving.
