Some benefits set to rise by 2.4% as inflation falls
A number of benefits are likely to rise by 2.4% in April, following the publication of today's inflation figures - and the basic state pension is set to rise by 2.6%.
Some benefits, including those for maternity and disabilities, are usually pegged to September's Consumer Prices Index (CPI) inflation measure, which was revealed as being 2.4% this morning.
The official increase to the benefits is expected to be confirmed in November, but will need Parliamentary approval before it takes effect in April.
Today's announcement also means the basic state pension is set to rise by a higher figure of 2.6% due to a Government guarantee.
Under the "triple lock" rule, state pensions rise in line with average earnings, CPI or 2.5% – whichever is higher.
Figures released yesterday by the Office for National Statistics show the average increase in earnings between May and July this year (which is the usual approved measure) was 2.6%.
Here's how the state pension payment could increase:
- For those who reached state pension age BEFORE 6 April 2016... the basic rate is £125.95 a week (excluding any additional payments), so this could increase by £3.27. See our Old State Pension guide for more.
- For those who reached state pension age ON OR AFTER 6 April 2016... the flat rate payment (excluding additional 'protected' payments) is currently £164.35 a week, so this could increase by £4.27. See our New State Pension guide for more.
The more representative Retail Prices Index (RPI), which also includes housing costs, eased back last month, from 3.5% to 3.3% in August.