Higher inflation has driven up the DWP's benefits bill

Most state benefits will rise by 3.8 per cent next year in line with September’s rate of inflation , exceeding earlier predictions by the Treasury watchdog.

September’s CPI inflation figures are used to calculate the increase to many welfare bills which take effect next April, including universal credit and personal independence payments (Pips).

The rise is likely to cost the Treasury more than expected given inflation is nearly twice the Bank of England’s two per cent target rate and higher than forecasts set by the Office for Budget Responsibility.

But some slight reprieve for the Chancellor may come given more recent forecasts stated inflation would hit four per cent in the year to September.

CPI inflation stood at 3.8 per ce

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