The recent fall in UK inflation may ease costs but won’t significantly boost universal credit payments for claimants
Universal credit payments are set to increase in April, but that’s based on last September’s inflation rate, which was pretty low at 1.7%. So, even though inflation has dropped, the benefits won’t keep up with rising living costs. It’s a bit of a bummer, right?
The Office for National Statistics (ONS) reported that inflation has been on a rollercoaster ride, hitting a high of 11.1% in October 2022. That was mainly due to global supply chain issues and energy prices skyrocketing after the Ukraine situation. Now, while the recent drop is nice, it still means living costs are a struggle for many.
The Bank of England is keeping a close eye on these numbers, trying to manage inflation around their target of 2%. But for those relying on universal credit, the April increase just won’t cut it if prices keep rising faster than their benefits.
Experts are worried that inflation might creep back up soon, especially with energy prices expected to rise again. The Institute for Fiscal Studies (IFS) has pointed out that with the minimum wage going up, we could see inflation climb again.
Paul Johnson from IFS mentioned that while the drop to 2.5% is good, we need to be cautious. There are signs inflation could rise again, especially if energy prices bounce back. So, it’s a mixed bag for universal credit claimants.
Iain Porter from the Joseph Rowntree Foundation suggested that the government could consider using more recent inflation rates for adjustments. It makes sense, right? But the current system is what it is, and it’s causing issues for many people.
In short, while the drop in inflation is a small win, it doesn’t really help those struggling to make ends meet. The high cost of essentials is still a big problem, and many are feeling the pinch. The government really needs to step up and support those in need.
