Chancellor Jeremy Hunt has announced plans to increase Universal Credit and other benefits from April 2024.

The 6.7% rise is in line with September’s inflation figure, Hunt said.

There had been speculation that Hunt would instead use the lower inflation figure for October, when it slowed to 4.6%.

He unveiled the government’s tax and spending plans in the Autumn Statement today (22 November).

The move is expected to benefit millions of people.

Jon Greer, head of retirement policy at Quilter, said: “Traditionally, welfare benefits, much like state pensions, are adjusted annually based on the previous year’s inflation up to September.

“This method ensures that while there is a lag in adjusting to current inflation rates, the real value of these benefits eventually aligns with economic conditions.

“If they had moved the measurement month to October, the government would have effectively excluded the typically higher inflation of September from its calculations.

“This exclusion, especially in times of high inflation like September 2022, would have meant that the uprating may not fully compensate for the increased cost of living, leading to a de facto reduction in the real value of welfare benefits.

“Over time, this can amount to a considerable reduction in support for those reliant on these benefits. It is therefore good news that they have kept the original uprating measure in place.”