A think-tank has warned many people on benefits will be financially worse off until 2025 due to a failure in payments keeping up with inflation
. The Institute for Fiscal Studies said the annual uprating of benefits in April will “merely take them back to around the real level they were at a year earlier”.
In a report released on Wednesday, it said: “Astonishingly, it is not until April 2025 that benefit rates are set to recover the ground they lost over the autumn and winter of 2021 due to lags in uprating them with inflation.” Such payments, despite trying to “plug the gap” will “actually result in the government spending around £2 billion more on recipients of means-tested or disability benefits” in the next financial year than it would have had to if it had raised ordinary benefits in line with current inflation, the IFS said.
Top Money Stories Today The report stated: “Receipt of each of the three £300 instalments of the payment will be contingent on having been a Universal Credit recipient in a specific prior month. “The introduction of Universal Credit offered an opportunity to rectify this administrative anachronism, but it has not been taken.
“The crude patch that it will apply over the problem in the next financial year, in the form of cost of living grants, is no substitute for fixing it at source. And under current inflation expectations, benefits will still not have entirely regained their real value until April 2025.”
France Dernières Nouvelles, France Actualités
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