Major changes to Universal Credit could be announced in the chancellor's statement this week
The government is expected to announce significant changes for people claiming benefits and state pensions this week.
Under the triple lock, payments rise in line with earnings growth, September's rate of Consumer Prices Index inflation, or 2.5 per cent - whichever is highest. Lower inflation this year means pension payments are set to rise in line with earnings growth, which was 4.1 per cent up to July this year. Charites have called on the government to apply a higher increase to benefits, arguing that a 1.7 per cent increase would be worth "just a few pounds" each month. The rise would see a typical low-income family with two children seeing their annual award increase by just £253.
The current cap on monthly deductions is 25 per cent of a claimant's standard allowance, but the new rate would reduce the cap to 15 per cent. The move would help 1.2 million of the UK's poorest households, the paper reports. A spokesperson for the government said: "We have always said that the Work Capability Assessment is not working and needs to be reformed or replaced alongside a proper plan to support disabled people to work. We will deliver savings through our own reforms, including genuine support to help disabled people into work."
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