DWP issued warning over Universal Credit, PIP and other benefits as payments to increase

The Department of Work and Pensions (DWP) has been warned that increasing benefits by around £6 a month from April would 'barely touch the sides' for people struggling with the cost of living.

It comes after new data published today showed that inflation fell to 1.7 per cent in September, dropping below the government's 2 per cent target for the first time in three years.

However, the fall in inflation has been described as "badly timed" for the UK's poorest households.

READ MORE: Fuel and flight price cuts see inflation drop to 1.7 per cent in September

In April, benefits including Universal Credit and Personal Independence Payment (PIP), could be set to rise in line with September's inflation figure.

Last year, benefit claimants saw their payments rise by 6.7 per cent in line with last year's September inflation figure. But this year's offering would be much less generous if the same formula is used to calculate the rise.

Despite the recent fall in inflation, analysts have warned that the figure is likely to rise in the coming months due to higher energy prices.

The Joseph Rowntree Foundation calculated that a 1.7 per cent increase would see the standard allowance basic rate of Universal Credit go up by about £1.50 a week from its present level of £90.55, while the basic rate for couples would increase by approximately £2.50 a week from £145.13.

That would mean a typical low-income family with two children seeing their annual award increase by £253 next April.

But if working-age benefits were uprated in line with October’s inflation figure rather than September’s, taking into account the new energy price cap increase which came into effect on October 1, the rate could be higher at around 2.2 per cent, meaning