The government has confirmed that it will be extending the uplift on Universal Credit until September.

In today’s Budget, the chancellor also announced the National Living Wage will rise to £8.91 from April.

Amid the financial impact on low-income households during the pandemic, the benefit was upped by £20 a week, giving around £1,000 per year extra to claimants.

This was only ever meant to be temporary though, with lower payments resuming after April but this has now been extended until September, along with the furlough scheme.

Reports emerged ahead of the Budget that an extension was on the cards. While this provides a lifeline for some, it falls short of what MPs on the work and pensions committee had requested.

Committee chair Stephen Timms described a year extension as the “bare minimum” that should be offered.

With a recent commons vote on an extension proposed by Labour ending with Tory MPs abstaining, there was little clarity as the deadline for higher payments neared.