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DWP benefit claimants are to get a bigger payment boost than expected from next year. Most state benefits are set to increase by 3.8 per cent from April 2026, in line with September's inflation rate, surpassing earlier predictions made by the Treasury watchdog.

September's CPI inflation figures are used to calculate the rise in many benefits, including Universal Credit and Personal Independence Payment (PIP), which will take effect next April. However, Universal Credit is set for an even higher boost as new legislation approved a 2.3 per cent rise above the level of inflation.

Inflation is nearly double the Bank of England's 2 per cent target rate and higher than forecasts set by the Office for Budget Responsibility, so benefit increases will cost the Treasury much more

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