The Department for Work and Pensions (DWP) has announced that Universal Credit payments will rise from April 2023.
The annual rise will keep in line with the steadily increasing cost of living and will happen alongside other increases affecting personal independence payments and housing benefits. It comes after the University of Sussex Business School claimed the introduction of Universal Credit "imposed large societal costs".
Universal Credit recipients are being forced to budget more harshly as inflation rises to over 9 per cent - with some even reporting that they have to skip out on feeding their children to afford basic goods. Despite the one-off cost of living payment being dished out to millions across the country, many of those depending on benefits are struggling to keep up with the rising cost of gas, petrol and produce at supermarkets.
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A minister at the DWP stated that confirmation of increased Universal Credit payments will not happen until November. Parliamentary under-secretary for the DWP David Rutley responded to a written question which asked the government to review benefit payments, taking into account the expected increase of the energy price cap, the Mirror reports.
MP David Rutley said in response that the DWP Secretary is "required to undertake an annual statutory review of benefits and pensions" but there were no plans to bring the review forward, "her review will commence in the autumn and her decisions will be announced to Parliament in November in the normal way."
He also confirmed that the increase would either be in line with inflation, earnings, or maybe higher than both. He added: "The Secretary of State must increase certain benefits by at least the increase in prices or earnings.
"If she considers it appropriate, having regard to the national economic situation and any other matters which she considers relevant, she may increase others by such a percentage(s) as she thinks fit."
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