Universal credit is expected to increase by 6.2% next year if the government follows the tradition of uprating benefits in line with September’s rate of inflation .
The latest figures show that inflation was 3.8% in September, meaning that prices increased by 3.8% on the previous year.
Typically, the government raises benefits in April in line with September’s rate of inflation – but ministers have already announced that universal credit will increase by above-inflation rates every year until 2029.
As part of the government’s welfare reforms, universal credit was already set to increase by 2.3% next year. September’s inflation rate means that it should rise by a total of around 6.2%.
In cash terms, it means the standard universal credit allowance is set to rise from £92 to £98