POUND NOTES

Nine million households will be an average of £500 worse off due to benefits rising less than inflation, a think-tank warns.

The Joseph Rowntree Foundation says the decision to raise welfare payments by 3.1% – when inflation is forecast to hit 7% – could pull 400,000 more people into poverty.

The Universal Credit standard allowance will rise £10.07 a month on April 11 to £334.91 for over-25s. While the Pension Credit standard minimum guarantee for a couple is rising by £8.40 a week to £278.70.

The rises were set in line with inflation in the autumn. Inflation has since soared to 5.5%. The JRF said the shortfall will “further erode the value of benefits that are already wholly inadequate”.

Of the nine million, 1.8 million low income couples with kids will lose out by £720 per year.

The Government said it is providing £12bn of support this financial year and next to help with the cost of living.

Up to 850,000 families who were entitled to receive Pension Credit did not claim the benefit in the financial year 2019 to 2020, according to Government figures.

The Department for Work and Pensions (DWP) said up to £1.7 billion of available Pension Credit went unclaimed.

On average, this amounted to around £1,900 per year for each family entitled to receive Pension Credit who did not claim the benefit.

Pension Credit gives people extra money to help with living costs if they are over state pension age and on a low income. An estimated seven out of 10 of those entitled to Pension Credit did claim.

Up to 260,000 thousand pensioners who were entitled to receive Housing Benefit did not claim the benefit, according to the figures.

On average, this amounted to around £4,000 per year going unclaimed.

People can find out more about making a claim on the gov.uk website.