Pip

Prime Minister Liz Truss 's reluctance to raise benefits to match The Rising cost of Living is causing a rift within The Conservative Party . Cabinet minister Penny Mordaunt says it " makes sense" to increase them In Line with inflation.

So What are The main benefits and have they kept up with rising prices?

In February, were claiming some form of benefits, in England, Scotland and Wales.

In 2019-20, The year before The Covid pandemic, About £94bn On Benefits .

In The same year, £99bn was spent on The State pension.

By comparison, The government per year on health and social care.

Most working-age benefits usually increase every April, In Line with The previous September's inflation rate.

But between 2016 and 2020,

If The government decides against raising benefits In Line with inflation next year, it could instead increase them by The same proportion as average wages.

But this would represent a cut compared with The Rising cost of Living - and not apply to non-means-tested disability benefits, which under current law must rise In Line with prices. This includes Personal Independence Payment.

When It Comes to The State pension, Ms Truss has indicated she will maintain The triple lock, which ensures an annual rise to keep up with The - of either 2. 5%, The rate of any increase in average earnings, or inflation, whichever is highest.

At £18. 4bn, (UC) was The government's joint-highest benefit spend in 2019-20.

Claimed by - About 41% of whom have Jobs - UC is a monthly payment to.

It was introduced to replace A Number of existing benefits, including:

During The Covid pandemic, UC claimants received a temporary £20-a-week increase.

In 2019-20, £18. 4bn was spent on, which helps people pay their rent.

In May 2022, there were 1. 5 million working-age recipients and 1. 1 million of pension age.

Housing benefit is gradually being replaced by UC.

The main allowances for disabled people are:

In February:

The government spent £11. 1bn on child benefit in 2019-20.

Since 2013, claimants earning More Than £50,000 gradually have The benefit reduced The more they earn.

At £60,000 and above, child benefit is fully withdrawn.

And that figure has not been adjusted to reflect rising prices since then, meaning it now affects many more people.

In August 2021, 7. 1 million families were receiving child benefit.

and are being replaced by UC.

In 2019-20, The government spent £17bn on them but that is expected to fall to £7. 5bn this year.

Separate from The State pension, helps people over state-pension age with low incomes with Living costs, at a cost of £5bn in 2019-20.

More Than 1. 4 million people currently receive pension credit, although The government says there are significantly more eligible pensioners who do not claim.

The UK spends 3. 9% of gross domestic product (Gdp ) - The total value of goods and services produced in The Country - on working-age benefits, according to The from The Organisation for Economic Co-operation and Development (OECD)

In A Number of European countries, this proportion is higher.

Belgium tops The OECD list, at 6. 4%, followed by Norway and Finland.

" The UK has one of The least generous out-of-work benefits systems for workers on average earnings in The OECD, "

Source of news: bbc.com