The September inflation rate is important for Jobseekers and others on benefits because it is the rate at which their benefits uprate next April. So people in the Welfare to Work World will be interested to know that the Consumer Prices Index for inflation this September was 5.2%. This is the highest CPI measure since September 2008, and it has never been higher since the CPI measure was introduced in 1997.
Whist it seems high, the Institute for Fiscal Studies has recently shown that the poor have experienced even worse inflation. And Lone Parent families are amongst the poorest. This is because those on lower incomes spend more of their money on gas and electricity, which have risen 9.9% in the past month, and are up 18.3% on the year, and food, which was 6% higher in September than 12 months ago.
Benefits affected include: Jobseekers’ Allowance; Income support; Incapacity benefit; Child tax credit; Working tax credit and Child benefit.