Chancellor Jeremy Hunt has announced he will increase benefits in line with inflation during his Autumn Budget today.
It comes after the government received repeated calls from the opposition and campaigners to provide more support to people on Universal Credit during the cost of living crisis. Mr Hunt revealed he will increase working age and disability benefits in line with inflation, with a rise of 10.1 per cent, costing £11 billion.
The Government will also introduce an additional £900 for those on benefits in a series of cost-of-living payments, which includes £300 for pensioners and £150 for those on disability benefit.
READ MORE: Jeremy Hunt announces huge changes to 600,000 people on Universal Credit
"Today I also commit to uprate such benefits by inflation with an increase of 10.1%, that is an expensive commitment costing £11 billion," Mr Hunt said.
"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."
Earlier in his statement to the Commons, Mr Hunt announced that around 600,000 more people on Universal Credit will have to meet with a work coach so that they can 'get the support they need to increase their hours or earnings.'
He also said the government would invest an extra £280 million in the Department of Work and Pensions to "crackdown" on benefit fraud and error over the next two years.
Campaigners had sounded the alarm ahead of the budget, calling for immediate, targeted action to protect the poorest households from the soaring cost-of-living.
Overall, the figures show that 5.8 million people were on Universal Credit in October. This is up from 5.5 million in March 2022, but below the peak of 6.0 million in March 2021.
More than half (57%) of people receiving the benefit in October were women, and 41% of those receiving the benefit in September were in employment.
Dan Paskins, director of UK impact at Save the Children UK, had called on the chancellor to increase benefits in line with inflation during the budget, and increase the child element by £10 a week.
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He said: "Children are facing the toughest economic climate in decades and for those in families on Universal Credit, the crisis and potential recession are the latest in over a decade of real term cuts to social security.
"Growing up in a family receiving Universal Credit in 2022 is desperate, through no fault of the child or their parents.
"Money just isn’t stretching as far as it once was, with soaring food and energy bills putting intolerable stress on parents doing their best to put meals on the table, pay for hot water, heating and light.
"We are now deeply concerned about the risk to children’s health and wellbeing this winter, and the impacts of this crisis are likely to be felt throughout a child’s life."
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