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Wales Online
Wales Online
National
Dan Bloom & Robert Rowlands

Benefits to rise by just 37p a week for millions of people in April

Benefits will rise by just 37p a week for millions of people in April, it has been announced today.

'Legacy benefits' that support many not on Universal Credit will rise by just 0.5 per cent, the latest rise of inflation, for 2021/22.

The same rise will apply to benefits for carers.

That equates to an increase of just 37p a week to the £74.35 standard rate of Jobseekers' Allowance or sickness and disability benefit Employment and Support Allowance, Mirror Online reports.

Such benefits are claimed by around two million people, many sick or disabled.

The Government has moved millions of people onto Universal Credit, which has been better treated recently - but those on other, older benefits appear to be getting a tough deal.

The Government introduced the credit in an effort to simplify the benefits system and get more people into work - and, opponents say, to save money and make people wait longer to claim.

Furthermore, in a move that will worry critics, the rise for children and those under- 25 looks likely to be even smaller.

The separate Carer's Allowance looks set to rise by just 34p.

It all comes after Universal Credit was raised by £20 this year.

The state pension is also going up by 2.5 per cent.

It will widen the gap between legacy benefits and Universal Credit.

Universal Credit was raised by £20 a week in April this year, but no such rise was given to people on legacy benefits.

The Government is being lobbied to keep the £20 boost to Universal Credit in April, when it automatically ends.

However, Work and Pensions Secretary Therese Coffey today said a decision has not yet been made on whether to extend it.

She told MPs that state pensions will be increased by 2.5 per cent and the full rate of the new state pension will now be worth £179.60 per week.

She said the Standard Minimum Guarantee in pension credit will also increase by the same cash amount as the basic state pension, rising by 1.9 per cent.

But she added: "All other benefits will be increased in line with CPI [the consumer price index which is used to measure inflation][ - which was 0.5 per cent in the relevant reference period.

"This includes working-age benefits, benefits to help with additional needs arising from disability, carers’ benefits, pensioner premiums in income-related benefits, Statutory Payments, and Additional State Pension."

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