Universal Credit is set to increase.
In the Autumn Statement today (Wednesday 22), Jeremy Hunt is prepared to announce that both pensions and benefits will increase. But this wasn't always the Chancellor's plans.
According to the Mirror, Hunt had been planning to penalise families on Universal Credit by not increasing benefits as usual. Payments are set to rise next April by 6.7%, based on September's inflation figure.
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To save money for handouts for the wealthy, the Chancellor had considered using October's lower inflation figure of 4.6%. This would have resulted in low-income families losing hundreds of pounds each, but it is now understood that he has abandoned this plan.
Hunt has decided not to meddle with the pensions triple lock, despite considering a tweak that would have left pensioners £760million worse off. He stated: "After a global pandemic and energy crisis, we have taken difficult decisions to put our economy back on track… Our plan for the British economy is working, but the work is not done."
Changes to work capability assessments, announced in September, are set to proceed. This means from 2025, fewer people will qualify for sick and disability benefits due to the rise in home working. Existing claimants won't be affected by this change.
The Government has also announced a pay rise for nearly three million workers as it increases both the National Living Wage and the National Minimum Wage. From next April, the National Living Wage will increase to £11.44 per hour, up from the current £10.42, and this rate will now apply to all those aged 21 and above.
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