The State Pension and benefits will rise by 10.1%, Jeremy Hunt announced today in a move spelling relief for millions of Brits.
After months of uncertainty and facing a Tory revolt, the Chancellor used his Autumn Statement to confirm both payments will go up by September’s figure of inflation.
A 10.1% rise - costing £11bn - will likely take the New State Pension up by £18.70 a week, from £185.15 to £203.85. The rise will be worth £870 over the year.
And it will take the standard allowance in Universal Credit for a single person over 25 from £335 to £369 a month. The average family on the benefit will benefit by around £600, Mr Hunt said.
And exceptionally the benefit cap of £23,000 in London or £20,000 outside will finally rise with inflation after years of freezes and campaigns.
Pension Credit will also rise 10.1%, Mr Hunt said.
But some will argue the rise is already out of date, because inflation has already risen to 11.1% in the latest figures out yesterday.
The price of eggs rose 22.3% in the year to October, while whole milk prices rose 32.6%, pasta rose 34% and low-fat milk was up 47.9%.
Meanwhile, campaigners argue pensions and benefits are still playing catch-up after rising by only 3.1% in April 2022 - when inflation was already much higher.
Elsewhere Jeremy Hunt said he would move back the managed transition of people on ESA to Universal Credit to 2028 - a FOUR year delay on top of many delays already.
The 2019 Tory manifesto promised to raise pensions by the triple lock - the highest of earnings (5.5%), inflation (10.1%), or 2.5%.
Rishi Sunak backed the triple lock, then suspended it during Covid, then backed it again in summer, then wouldn't guarantee it, and now it will happen.
But ministers were considering scrapping the triple lock altogether after 2025 and replacing it with a different formula, according to previous reports.
Meanwhile, Mr Sunak had promised benefits would rise by inflation, only to say he couldn’t guarantee he would keep the pledge once he became Tory leader.
Ahead of the Autumn Statement, Chancellor Jeremy Hunt justified around £54billion in tax rises and spending cuts by claiming his Budget showed “British values”.
He said: “We are taking difficult decisions to deliver strong public finances and help keep mortgage rates low, but our plan also protects our long-term economic growth.
“At the same time, we protect the vulnerable, because to be British is to be compassionate.”
NHS mental health nurse Victoria, 38, told a survey by the Riverside housing group she had to skip meals so her children could eat.
She said: “Some days I just have breakfast and dinner after work and I skip having lunch.
“I would say that there are probably more people skipping meals than have said in this polling as I know both neighbours and colleagues going through the same thing.
“I feel upset and angry and I also feel sad. I'm working hard, and then the amount of money that I'm earning is not enough to sustain me and my children.
“What’s the point of going to university and doing a degree and a Masters to make you’re life better and self-sufficient but then you’re going out there and needing to ask for help?
“I’ve used a foodbank twice in the past four months.”
