UK state pensions to increase in line with inflationwritten by Bella Palmer
On top of the ‘biggest ever cash increase in the state pension’, the chancellor also said that he would uprate universal credit and benefits by inflation, with a jump of 10.1 per cent next year
Chancellor Jeremy Hunt has said he will increase state pensions in line with inflation in April.
On top of the ‘biggest ever cash increase in the state pension’, the chancellor also said that he would uprate universal credit and benefits by inflation, with a jump of 10.1 per cent next year.
I’ve talked a lot about British values of compassion, hard work, dignity, fairness. There is no more British value than to protect and honour those who built the country in which we live. So to support the poorest pensioners I have decided to increase the pension credit by 10.1 per cent, the chancellor said in his Autumn statement.
He continued: I can also announce that we will fulfil our pledge to the country to protect the pensions triple lock. In April the state pension will increase in line with inflation, an £870 increase, which represents the biggest increase to the state pension.
Conservative MPs cheered loudly as Hunt announced that he would be protecting the pensions triple lock.
Announcing his increase of benefits in line with inflation, Hunt said: Today I also commit to uprate such benefits by inflation with an increase of 10.1 per cent that is an expensive commitment costing £11bn. 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, he said.
Hunt concluded his statement by saying that this was ‘a balanced plan for stability, a plan for growth and a plan for public services.’
Shadow chancellor Rachel Reeves responded: This government has forced our economy into a doom loop where low growth leads to higher taxes, lower investments and squeezed wages, with the running down of public services - all of which hits economic growth again.
The Office for Budget Responsibility has forecast that more than half a million people would lose their jobs, while living standards will crash as a result of rising prices.
The OBR’s assessment, which was published alongside Hunt’s Autumn statement, said: Rising prices erode real wages and reduce living standards by 7 per cent in total over the two financial years to 2023-24 (wiping out the previous eight years’ growth), despite over £100bn of additional government support.
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