UK Benefits Increase by 1.7% Amid Inflation Concerns

Chancellor Rachel Reeves faces pressure to address the impact of low benefit rises on struggling households as inflation dips.

The UK government plans to raise benefits by 1.7% in April 2025, significantly lower than the 4.1% increase for state pensions due to the triple lock system.
Inflation has fallen to 1.7%, the lowest in three-and-a-half years, but food and energy costs remain high, creating financial strain for low-income families.
Chancellor Rachel Reeves is urged to consider targeted support measures, such as scrapping the two-child benefit cap, to better assist those in need.
The Resolution Foundation highlights that the timing of the inflation dip will result in smaller benefit increases, impacting low-to-middle income families.
Economists warn that inflation may rise again, potentially reaching 3% next year, further eroding the real-term value of benefits for claimants.