Autumn Statement: Key announcements from Jeremy Hunt
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With no view of inflation rates slowing any time soon – and energy bills only set to increase – the Chancellor has announced further financial support for vulnerable households next year. Similar to this year, pensioners will receive another cost of living payment, worth £300, in 2023.
Presenting the Autumn Statement to the House of Commons, Mr Hunt said: “For the most vulnerable we will introduce additional cost of living payments next year, of £900 to households on means-tested benefits; £300 to pensioner households; and £150 for individuals on disability benefit.”
The support comes in his pledge to “protect” pensioners and those most “exposed” to high inflation.
Pensioner cost of living payment
The pensioner cost of living payment of £300 will come in addition to the means-tested benefit and disability payments, if eligible.
A statement from the Treasury reads: “Pensioners are disproportionately impacted by higher energy costs, many are unable to increase their income through work, and many low-income pensioner households do not claim the means-tested benefits they are entitled to, so offering universal support for this group is the right thing to do.”
The Department of Work and Pensions (DWP) will provide further detail on payment timings and eligibility dates in due course.
Like this year, the payment will be tax-free and will have no impact on existing benefit awards.
This additional support for pensioners comes as well as a state pension increase from April 23, in honour of the triple lock.
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How much will the state pension be in 2023?
Mr Hunt has confirmed the state pension will rise in line with the triple lock in April 2023. This will afford those who receive the state pension a 10.1 percent increase in their payments, in line with September 2022’s inflation rate.
Nearly 12 million pensioners in Great Britain (Scotland, England, and Wales) are said to be benefiting from this increase.
According to the Treasury, this increase is worth over £870 next year on average. Per week, a full basic state pension will increase from £141.85 to £156.20, and the new state pension will increase from £185.15 to £203.85.
The Government also announced plans to protect 1.4 million of the lowest-income pensioner households from inflation by increasing Pension Credit by 10.1 percent in April 2023, too.
According to Mr Hunt, this move is worth up to £1470 for a couple and £960 for a single pensioner.
Addressing the Commons, Mr Hunt said: “I have talked a lot today about British values – of compassion, hard work, dignity, fairness.
“There is no more British value than our commitment to protect and honour those who built the country we live in.
“To the millions of pensioners who will benefit from this measure I say – now and always, this Government is on your side.”
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