Pensioners & Benefits Claimants Cash In as Inflation Spells Bad News For Government

Today’s inflation figures are bad news for the Government as the CPI rate hit 5.2%. Putting aside the political difficulties of an inflation rate that is running at more than twice the Bank of England target (2%), high inflation will cost the Government more than £5billion.
Despite a recent change from RPI to CPI for up-rating, the cost of welfare benefits and state pensions will soar next year, as their April increase is linked to the September inflation rate.

Today’s figure of 5.2% will mean that the basic state pension will have to rise by at least £5.30 a week from April. Up from £102.15 to £107.45

There are around 12 million pensioners in the UK, each gaining an extra £275 a year as a result of inflation linked payouts. Basic State Pensions alone with add £3.3bn to the welfare bill next year.

The 1.6 million Job Seekers will see their weekly payout rise from £67.50 to £71.01 – adding a further £300million to the bill.