PIP, Universal Credit and five other benefits will increase: How much more you will get | Personal Finance | Finance

Much like savings, earnings this year will need to increase at a higher rate than inflation in order to ensure that savers receive the same real value in the face of high inflation. However, with inflation standing firm at a 30 year high, will the increase be enough to offset its effect and help the most vulnerable Britons stay above the waves?

The Consumer Prices Index inflation rate for the year to January increased to 5.5 percent, the Office for National Statistics (ONS) said today.

This is a growing concern for Britons as December saw the highest inflation rate in the last three decades at 5.4 percent, a trend that apparently will continue. 

Inflation is also part of the triple whammy waiting for savers in April, when National Insurance will increase by 1.25 percent and the next energy price cap rise will come into full swing.

During the cost of living crisis, it could be possible to save household finances by increasing income for workers and benefits recipients.

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Certain benefits will see an increase in April 2022 as well, however, this will likely see recipients losing far more than they gain. 

The benefits increase is based on the inflation rate from the year preceding September 2021, which back then was 3.1 percent. 

However, in the face of real inflation reaching 5.5 percent and estimated to rise up to seven percent this year, this means that benefits recipients will see their payments losing value.

With this in mind, how much can recipients expect to get from April and could it be enough to keep them afloat?

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Pension Credit, which provides for the most vulnerable in modern British society, will be increasing all aspects of the benefit, including the standard minimum, severe disability add on, carers add on, savings credit, children aspect, disabled child aspect, polygamous marriage and non-state pension categories. 

The minimum guarantee for single claimants will rise by more than £5 weekly to £182.60 while couples will receive £8 more at £278.70. 

The standard allowance for Universal Credit amounts will be rising, with single under 25s receiving £265.31 and single over 25s receiving £334.91. 

Couples with joint claims will also enjoy the increase, with under 25s rate rising by more than £13 to £416.45 and over 25s getting £525.72.