What's happened
UK inflation fell to 1.7% in September, affecting benefit upratings for April 2025. This decrease, driven by lower energy prices, will result in smaller increases for Universal Credit and other benefits, raising concerns for low-income families amid ongoing cost-of-living challenges.
Why it matters
What the papers say
According to the BBC, the inflation figure of 1.7% will directly influence benefit upratings, stating, "The amount paid in some benefits should, by law, rise at least in line with prices." The Guardian highlights the timing of this decrease as problematic, noting that it will result in lower increases for many families, with economist Lalitha Try stating, "This temporary fall is badly timed for millions of low- to middle-income families."
The Independent emphasizes the broader implications of this inflation drop, with Iain Porter from the Joseph Rowntree Foundation asserting, "The basic rate of Universal Credit is so insufficient it fails to protect families from hardship." This sentiment is echoed across multiple sources, indicating a consensus on the challenges faced by low-income households amidst fluctuating inflation rates.
How we got here
The UK's inflation rate has fluctuated significantly over the past few years, with recent spikes largely attributed to rising energy costs. The latest Consumer Price Index (CPI) figure of 1.7% is used to determine benefit increases, impacting millions reliant on state support.
Common question
-
What Happened in the M6 Crash and How Can We Stay Safe on the Roads?
A tragic car crash on the M6 in Cumbria has raised serious concerns about road safety. With five lives lost, including two children, many are left wondering what led to this incident and how similar tragedies can be prevented. Below, we address common questions surrounding the crash, road safety tips, and support for victims' families.
-
What Does the Latest Drop in UK Inflation to 1.7% Mean for You?
The recent drop in the UK's inflation rate to 1.7% has raised many questions about its implications for everyday life, benefits, and future economic trends. Understanding these changes can help you navigate the financial landscape more effectively. Below, we explore key questions surrounding this significant economic shift.
More on these topics
-
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based.
-
Universal Credit is a United Kingdom social security payment. It is replacing and combining six benefits for working-age people who have a low household income: income-based Employment and Support Allowance, income-based Jobseeker's Allowance, and Income
-
Rachel Jane Reeves is a British Labour Party politician serving as Shadow Chancellor of the Duchy of Lancaster and Shadow Minister for the Cabinet Office since 2020. She has been the Member of Parliament for Leeds West since 2010.
-
The Resolution Foundation is an independent British think tank established in 2005. Its stated aim is to improve the standard of living of low- and middle-income families.
-
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northÂwestern coast of the European mainland.
-
Labor-Gesher was a joint list of the Israeli Israeli Labor Party and Gesher parties for elections for the twenty-second Knesset. The list advocated social democracy and progressive taxation. The list's platform focused primarily on socio-economic issues.