In the fiscal statement, the Chancellor confirmed that benefits will rise with inflation next April. This is a welcome commitment — we said that increasing benefits by inflation was the essential first step in supporting people weather the cost of living crisis. So why won’t it be enough?
One reason is that support with housing costs have remained frozen at 2020 levels. This means renters will see some of the additional income from their benefits increasing go straight out the door on higher payments to their landlords. But there’s an equally harmful problem that’s received less attention. The fact that our unresponsive uprating system leaves benefits lagging behind price rises when inflation is high.
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