William Eichler 19 October 2022

Benefits set to be 6% below pre-pandemic levels

Benefits set to be 6% below pre-pandemic levels  image
Image: Asti Mak/Shutterstock.com.

Benefits next year are on course to be 6% below their pre-pandemic levels, financial experts predict.

Working-age benefits are uprated every April in line with the previous September’s CPI inflation figure, which this morning the ONS put at 10.1%. If the Government uprates benefits with inflation, most will go up by 10.1% in April.

However, the Institute for Fiscal Studies (IFS) calculates that this will leave the real value of working-age benefits at 6% below pre-pandemic levels, equivalent to almost £500 per year for the average out-of-work claimant.

The IFS also noted that this assumes that benefit recipients will continue to receive equivalent support for rising energy bills as they do under the Energy Price Guarantee.

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