The Government is to introduce extra cost-of-living payments for the “most vulnerable”, Chancellor Jeremy Hunt confirmed during his Autumn Statement on Thursday (November 17). Households will pay more in energy bills from April next year, with typical bills rising from £2,500 to £3,000 as the Government reduces the level of support.
But extra payments are also coming: £900 for those on means-tested benefits, £300 for pensioner households and £150 for those on disability benefits. On Government help with energy bills for the most vulnerable, the Chancellor told MPs: “At the same time, for the most vulnerable we will introduce additional cost-of-living payments next year, of £900 to households on means-tested benefits; £300 to pensioner households; and £150 for individuals on disability benefit.
“We will also provide an additional £1billion of funding to enable a further 12-month extension to the Household Support Fund, helping local authorities to assist those who might otherwise fall through the cracks. And for those households who use alternative fuels such as heating oil and LPG to heat their homes, I am today doubling the amount of support from £100 to £200, which will be delivered as soon as possible this winter.
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“Before the end of this year, we will also bring forward a new targeted approach to support businesses from next April.” The national living wage will be increased to £10.42 from April 2023, the Chancellor also announced.
Mr Hunt told the Commons: “Today, I am accepting the recommendation of the Low Pay Commission to increase it next year by 9.7%. That means, from April 2023, the hourly rate will be £10.42 which represents an annual pay rise worth over £1,600 to a full time worker.
“It is expected to benefit over two million of the lowest paid workers in the country and keeps us on track for our target to reach two-thirds of median earnings by 2024. And it is the largest cash increase in the UK’s national living wage ever.”
Mr Hunt also confirmed benefits and the state pensions will rise in line with inflation and that the pension credit will increase by 10.1%. The Chancellor said: “Today I also commit to uprate such benefits by inflation with an increase of 10.1%, that is an expensive commitment costing £11bn.
“But it means 10 million working-age families will see a much-needed increase next year. On average, a family on universal credit will benefit next year by around £600. And to increase the number of households who can benefit from this decision I will also increase the benefit cap with inflation next year.”
He added: “To support the poorest pensioners, I have decided to increase the pension credit by 10.1% which is worth up to £1,470 for a couple and £960 for a single pensioner in our most vulnerable households. But the cost-of-living crisis is harming all pensioners so because we have taken difficult decisions elsewhere in this statement, I can today announce that we will fulfil our pledge to the country to protect the pensions triple-lock.”
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