Benefits are set to rise by 6.7 per cent next April, according to this week’s September inflation announcement, but this will not be enough to cover the rising costs facing low-income families.
Chris Davis, CEO of the company MoneyPlushe said: “We need to be realistic and accept that many household costs, including basic food items, energy and clothing, have risen by much more in real terms, putting more and more households under unprecedented pressure.”
The expert added: “We hope that the chancellor will announce new measures to help those who are most vulnerable in her autumn statement next month.
“We would also call on the Government to consider the way in which creditors are currently contacting vulnerable customers and demanding repayment without effective co-ordination. This is a critical area that requires a more thoughtful and empathetic approach.”
Mr Davis encouraged Britons who have taken on debt as they struggle to pay their dues accounts reach out for help.
He commented: “With more and more people having to increase their incomes and work much harder, many are relying on multiple forms of credit including overdrafts, loans and buy-now-pay-later services.
“When all these debts pile up, it becomes overwhelming and tempting to try to avoid the thing – it’s really important not to.
“Speaking up and confronting financial difficulties is key to taking control and managing the situation properly – there’s no shame in talking about money problems.
“Those who need advice should seek out authorized companies (like ours) and charities who can offer support in all debt solutions before making an informed decision about any repayment route they may take.”
This is the full list of benefits that are set to increase by 6.7 percent next April:
- Universal credit
- Allowance for attending classes
- Employment and Support Allowance (ESA)
- Housing benefit
- Income support
- Disability compensation for injuries at work
- Jobseeker’s Allowance (JSA)
- Maternity allowance
- Pension credit
- Personal Independence Payment (PIP)
- Legal maternity/paternity/adoption/split parental pay
- Statutory sick pay
- Tax credits.
There have been reports that this could be changed to use an average earnings figure that does not include bonuses instead, which would allow for a 7.8 percent increase in payouts.
State pensions and benefits rose this April by a record 10.1 percent following last year’s high inflation.
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