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Universal Credit and other benefits to rise for first time in five years

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People on Universal Credit and other working-age benefits will see their payments increase for the first time in five years from next April.

Child Benefit, non-disability Tax Credits, Jobseeker’s Allowance Payments and Universal Credit are set to rise by 1.7 per cent in line with September’s official inflation figure, which was announced today.

However, families could still be £580 a year worse off due to the four-year benefit freeze, which has reduced the real-terms value of working-age benefits by 6 per cent since 2015, according to the Resolution Foundation.

Adam Corlett, senior economic analyst at the think tank, said: “While the benefit freeze is over, its impact is here to stay with a lower income couple with kids £580 a year worse off as a result. And because benefits will only keep pace with rising prices, the social security safety net will continue to erode – falling further behind earnings and the state pension.”

The Foundation said the continued erosion of working-age benefits – which are particularly vital for families with young children – is hard to justify when children born between 2016 and 2020 are facing the joint-highest rates of early years poverty since records began 60 years ago.

It is calling for political parties to re-think their approach to working-age benefits, and to re-prioritise support for lower-income families.

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