MILLIONS of Brits on Universal Credit and other benefits will get a pay rise of 3.1% next year.
The government has confirmed that payments will rise in line with the rate of inflation.
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Secretary for state for work and pensions Therese Coffey said today: “The Consumer Price Index (CPI) for the relevant reference period (the year to September 2021) was 3.1%, and I can confirm that benefits will increase in line with that.”
The annual rise will come in from April 11, 2022.
Benefit rates often rise each year, and went up by 0.5% in April this year, based on inflation in September 2021. In April 2020 they went up by 1.7%.
But despite the larger rise, the cost of living is rocketing with the Bank of England predicting that inflation could hit 5%.
It means the annual rise to payments could be eaten up by higher costs like energy bills and food shopping in the coming months.
The rise will see the standard allowance of Universal Credit rise for single claimants from £324.84 to £334.91 a month – an extra £10 a month.
And for couples, the basic amount will rise from £509.91 to £525.72, charity Turn2Us said – an extra £15.81.
But the exact amount that Universal Credit payments will rise also depends on other elements being claimed, for example for children or disabilities.
Other benefits that will rise include jobseekers allowance (JSA) employment, support allowance (ESA), tax credits and housing benefit.
The new rates in full are expected to be published by the government tomorrow (November 26).
The state pension will also rise by 3.1% next year, adding nearly £300 a year to pensioners’ pockets if claiming the full amount under the new system.
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