Government to put end to benefits and inflation link

clock

The Government is considering replacing the current practice of increasing benefits in line with inflation, according to the BBC.

The move, if implemented, would instead see annual increases in many benefits brought into line with average pay. The plans, which would affect both jobseeker's allowance and housing benefit, were first mooted in September last year, when above average inflation figures of 5.2% forced Chancellor George Osborne to consider cost-cutting measures. It was opposed by a combination of work and pensions secretary Iain Duncan Smith and the Liberal Democrats. The new move is set to be especially unpopular with Liberal Democrat activists, who meet in Brighton this week for the party's annual...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA bans three behind £35.5m scheme designed to bypass investor visa rules

FCA bans three behind £35.5m scheme designed to bypass investor visa rules

Dolfin Financial’s Denisz Nagy, Sanjay Maraj and Roman Joukovski banned

Sophia Panayi
clock 26 August 2026 • 2 min read
Cost of FCA action over illegal finfluencer promotions hits almost £250,000

Cost of FCA action over illegal finfluencer promotions hits almost £250,000

FOI request

Michael Nelson
clock 21 August 2026 • 4 min read
FOS reveals next phase of reforms

FOS reveals next phase of reforms

Including new powers to dismiss certain cases

Isabel Baxter
clock 11 August 2026 • 3 min read