Benefits are due to go up by 5.2% from next April, in line with September'​s inflation figures. However, the government is worried about the cost of such hikes and the impact on public opinion given the current low wage increases. The Financial Times is reporting that Chancellor George Osborne has asked officials for alternative models, including a rise in line with average earnings growth of about 2.5% or freezing some payments.

It is understood the government will have "​resolved"​ the options by early December when the uprating of benefits is presented to Parliament. The Institute of Fiscal Studies has calculated that the 5.2% September inflation figure will add £​1.8bn to welfare spending next year.It said freezing all benefits and pensions would save about £​10bn and linking benefits increases to wage rises would save £​5bn.

A further option of switching from the September inflation figure to an average inflation figure calculated over six months could save about £​1.4bn, the IFS added.

https://www.bbc.co.uk/news/mobile/uk-politics-15572524

Comments

Write comments...
or post as a guest
Loading comment... The comment will be refreshed after 00:00.

Be the first to comment.

Free PIP, ESA & UC Updates!

Delivered Fortnightly

Over 110,000 claimants and professionals subscribe to the UK's leading source of benefits news.

 
iContact
We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.