Benefits uplift still unlikely to cover cost of essentials, say experts

Universal Credit rise unlikely to help many people cover costs of essentials with couples facing a £2,500 shortfall

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Many people on benefits are still likely to struggle with the costs of basic essentials despite an above-inflation rise from April next year, experts have warned.

The September inflation rate, announced on Wednesday, is typically used to decide the level of increase for many benefits, such as universal credit (UC), tax credits and disability benefits.

UC-a payment to help with living costs for people on low incomes or those who are out of work or who cannot work-will see a 2.3% rise in the standard allowance rate from next April under the Universal Credit Act 2025 which was introduced to Parliament last month.

After applying September's inflation rate of 3.8%, this will mean a total uplift in the standard UC rate of around 6.2% next year.

But the Joseph Rowntree Foundation (JRF), which works on tackling poverty, said its calculations suggest the basic rate of benefits - known as the standard allowance- "bears no relationship to the cost of essentials", meaning many will still face a substantial gap in the amount they get in benefits and the cost of a basic basket of essentials.