The benefits freeze is to finish in April subsequent yr, the Government has confirmed, which means Universal Credit will rise by 1.7 per cent in line with inflation. The freeze was introduced in the 2015 Budget by Conservative former Chancellor George Osborne, and was supposed to final till the top of the present monetary yr.
“Our balanced fiscal strategy has constructed a robust financial system, with three.6 million extra individuals in work since 2010.
“And it is that robust financial system which permits us to bolster the welfare security web by growing profit funds for working-age claimants now.”
More than 2.5 million individuals on Universal Credit are set to obtain extra money, as nicely as claimants on legacy benefits
According to the DWP, the Universal Credit commonplace allowance for aged over 25 are set to obtain £100 extra per yr.
How a lot is present commonplace allowance?
A Universal Credit cost is made up of a regular allowance, in addition to any additional quantity which can be obtainable to an individual because of their private circumstances.
The month-to-month commonplace allowance for a single one that is below 25 is at present £251.77.
This rises to £317.82 if a single individual is aged 25 or older.
Those in a pair in which each companions are below 25 can get £395.20 for each.
Should one individual in the couple be aged 25 or older, that is as a substitute £498.89.
While the benefits freeze could also be ending, an evaluation by the Resolution Foundation has discovered that freeze has left the common couple with kids, who’re in the decrease half of the revenue distribution, £580 per yr worse off.
Adam Corlett, Senior Economic Analyst on the Resolution Foundation, mentioned final month: “This is their first money increase in 5 years.
“But whereas the profit freeze is over, its impression is right here to stick with a decrease revenue couple with youngsters £580 a yr worse off as a consequence.
“And as a result of benefits will solely maintain tempo with rising costs, the social safety security web will proceed to erode – falling additional behind earnings and the state pension.
“With kids born immediately dealing with the very best threat of poverty in 60 years, it’s time the primary events rethought their strategy to welfare, and reprioritised their efforts in the direction of supporting low and center revenue households.”
Meanwhile, the state pension is ready to rise by three.9 % subsequent yr, below the triple lock.