{"id":872,"date":"2024-10-21T03:11:15","date_gmt":"2024-10-21T06:11:15","guid":{"rendered":"https:\/\/labwp.com.br\/news\/why-this-months-inflation-figure-matters-for-you\/"},"modified":"2024-10-21T03:11:15","modified_gmt":"2024-10-21T06:11:15","slug":"why-this-months-inflation-figure-matters-for-you","status":"publish","type":"post","link":"https:\/\/labwp.com.br\/news\/why-this-months-inflation-figure-matters-for-you\/","title":{"rendered":"Why this month’s inflation figure matters for you"},"content":{"rendered":"

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The cost of living is always important to our finances but this month’s has a particular extra impact for millions of people.<\/p>\n

The September inflation figure<\/a>, showing the rates at which prices increase, will affect how much benefits and the state pension will rise as well as influencing interest rates and the prices in shops.<\/p>\n

It also comes just two weeks before this government’s first Budget, with the chancellor warning there will be \u201cdifficult decisions\u201d on welfare as well as tax and spending.<\/p>\n

Here are some of the ways in which it will directly affect you and your money. <\/p>\n<\/div>\n

Universal credit and other benefits<\/h2>\n<\/p>\n
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Typically, September’s Consumer Prices Index (CPI) measure of inflation<\/a>, which this time is 1.7%, is the benchmark for raising benefits the following April.<\/p>\n

The amount paid in some benefits should, by law, rise at least at the same rate as prices.<\/p>\n

That includes all the main disability benefits, such as personal independence payment, attendance allowance and disability living allowance, as well as carer\u2019s allowance.<\/p>\n

Universal credit, the most common benefit which is claimed by seven million people, is among other benefits also expected to rise in line with inflation, but that is a decision for ministers.<\/p>\n

It means that the standard allowance of universal credit, for a single person aged under 25, is expected go up by \u00a35.30 a month to about \u00a3317.<\/p>\n

For a couple aged over 25, the rise is likely to be \u00a310.50 to \u00a3628 a month, according to investment platform AJ Bell.<\/p>\n<\/div>\n

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The total amount received in universal credit depends significantly on your circumstances, such as earnings, children, or disabilities. Adding 1.7% to your current benefit amount should give a fairly accurate estimate of what you will receive in April.<\/p>\n

About 58% of universal credit claimants are women, and 38% of the total are working.<\/p>\n

Someone receiving attendance allowance, or the highest rate of personal independence payment, will see an increase of about \u00a31.85 a week in April.<\/p>\n

The increase in benefits is less than the 6.7% rise last April, which reflected the higher cost of living then.<\/p>\n<\/div>\n

Why the benefit rise could have been higher<\/h2>\n<\/p>\n
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September’s inflation figure was lower than expected, which means the increase in benefits is set to be relatively small.<\/p>\n

Next month, a rise in energy bills, which took effect at the start of this month, is expected to push the inflation rate back up again – too late for the link to benefits.<\/p>\n

The government, specifically the work and pensions secretary (no doubt working very closely with the chancellor), can decide to set a higher rate of increase for benefits. Charities would welcome such a move, but it would be extremely unlikely.<\/p>\n<\/div>\n

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Bigger increase for the state pension<\/h2>\n<\/p>\n
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The rise in the state pension in April is governed not only by inflation, but by what is known as the triple lock.<\/a><\/p>\n

Under that arrangement, the state pension goes up each year by either 2.5%, inflation, or earnings growth – whichever is the highest figure.<\/p>\n

This time around, the latest data has confirmed the highest is earnings growth – at 4.1%. This is expected to mean:<\/p>\n