BORIS Johnson will end the benefits freeze in April next year, giving a huge income boost to ten million Brits.
People on Universal Credit and jobseekers’ allowance will see their benefits package increase by 1.7 per cent for the first time in four years.
The majority of working age benefits have been frozen at the 2015/16 levels, meaning they don’t get hiked in line with inflation.
The freeze was due to end in 2020 but ministers have now confirmed that.
Charities estimated that thousands were 200 a year worse off because of the continued freeze.
Senior Tories have been urging ministers to end the freeze for months.
The move is set to cost 5billion as Boris Johnson prepares for an election spending spree.
Former Work and Pensions Secretary Amber Rudd had long been arguing for it.
Labour called it “cynically timed” to grab election votes ahead of the December 12 poll.
Others on ESA, income support, housing benefit, child tax credits, working tax credits and child benefit will also see a boost.
The state pension will go up by 3.9 per cent – the Government also confirmed today.
Work and Pensions Secretary Therese Coffey said: “We’re clear the best way for people to improve their lives is through work but we know some people require additional support.
“Our balanced fiscal approach has built a strong economy, with 3.6 million more people in work since 2010. And it’s that strong economy which allows us to bolster the welfare safety net by increasing benefit payments for working-age claimants now.”
While the boost is welcome, the Resolution Foundation has warned that it’s not enough to off-set the lasting effects of the six per cent drop real term value since 2015.
It found that a family of four in the poorest 50 per cent of households in the UK are actually 580 a year worse off.
And the charity warns that it will get even harder for these families because benefits are to rise at less than half the pace of wages, which grew by 3.9 per cent in the three months to July.
Adam Corlett, from the Resolution Foundation, said: “Because benefits will only keep pace with rising prices, the social security safety net will continue to erode falling further behind earnings and the state pension.
“With children born today facing the highest risk of poverty in 60 years, its time the main parties rethought their approach to welfare, and reprioritised their efforts towards supporting low and middle income families.”
We pay for your stories! Do you have a story for The Sun Online news team? Email us [email protected] call 0207 782 4368. We pay for videos too. Clickhereto upload yours.