Monday, April 11, 2022

Help with the cost of living

Today there was an increase in the value of state pensions, Universal Credit and other benefits by 3.1 per cent, helping with the cost of living by putting more money into people’s pockets.

A global energy price spike exacerbated by the war in Ukraine and coupled with inflation mean households face a cost of living challenge.

  • As part of the plan to deal with this there was an annual uprating which increased  the State Pension, Universal Credit, child benefit and other benefits by 3.1 per cent today – changes which will mean the full annual state pension will be over £2,300 higher than in 2010. Pensioners also received 2.5 per cent last year because of the triple lock, when inflation was flat - meaning their incomes have been protected through the pandemic.
  • Today's increase was based on the annual inflation rate last September: similarly the uprating this time next year will be based on the inflation rate to this September, so these benefits will keep place with inflation over the long term. I know however that there is concern that in the short term benefits may lag behind this year's spike in inflation, and the government will need to keep a careful eye on how the inflation position develops this year to ensure that adequate protection against the cost of living crisis remains in place.
  • Alongside the £22 billion package of support which the government is providing through this year and next, it will be essential that the government must continue to do all it can to ease the pressures on households and help manage day to day costs, and the government is committed to doing this.

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