Benefit and tax credits will see a below-inflation rate rise of 1% over the next three years, Chancellor George Osborne has announced in the Autumn Statement.
In a move intending to create better incentives for claimants to take on work, working age benefits - including jobseekers' allowance, employment and support allowance and income support - will rise by below inflation rates of 1% over the next three years, counteracting five year rises which have seen average earnings increase by 10% and out of work earnings by 20%.