Benefits will increase for millions of people by just 37 cents a week in April, announced today.
“ Legacy benefits ” that support many not based on Universal Credit will rise by just 0.5 percent in 2021/22, the latest inflation hike.
The same increase will apply to benefits for informal carers.
That equates to an increase of just 37 cents a week to the standard £ 74.35 rate of the Jobseeker’s Benefit or Sickness and Disability Benefit Employment and Support, Mirror online reports.
Such benefits are claimed by about two million people, including many sick or disabled.
The government has shifted millions to Universal Credit, which has been better treated lately – but those on other, older benefits seem to be getting a tough deal.
The government introduced the credit in an effort to simplify the benefits system and get more people into work – and, opponents say, to save money and keep people waiting longer to claim.
In addition, in a move that will cause concern for critics, the increase for children and people under 25 appears likely to be even smaller.
The separate Carer’s Allowance is expected to increase by only 34 cents.
It all comes after Universal Credit increased by £ 20 this year.
The state pension will also increase by 2.5 percent.
It will widen the gap between legacy benefits and Universal Credit.
Universal Credit was increased by £ 20 a week in April this year, but no such increase was given to those on legacy benefits.
The government is lobbying to keep Universal Credit’s £ 20 boost in April, when it automatically ends.
However, Secretary of Work and Pensions, Therese Coffey, said today that no decision has yet been made on whether or not to renew.
She told MPs that state pensions will be increased by 2.5 percent and the full rate of the new state pension will now be £ 179.60 per week.
She said the standard minimum guarantee in retirement credit will also increase by the same cash amount as the base pension, by 1.9 percent.
But she added, “All other benefits will be increased in accordance with the CPI [the consumer price index which is used to measure inflation][-thatwas05percentofrelevantreferenceperiod[-whichwas05percentintherelevantreferenceperiod[-datwas05procentinderelevantereferentieperiode[-whichwas05percentintherelevantreferenceperiod
“This includes working age benefits, benefits to help with additional needs arising from disability, caregiver benefits, retirement benefits in income-related benefits, statutory payments and state supplemental retirement benefits.”