Benefits freeze to end in 2020 – which payments are affected and will you be better off?

BENEFITS will increase for the first time in four years from April 2020, with claimants getting a 1.7 per cent boost to their payments.

But, which benefits are affected and will you actually be better off after benefits increase?

Most working age benefits have been frozen since 2016, meaning that payments have been increased each year in line with inflation.

The last time benefits increased was in 2015, and payments have been stayed at that level ever since.

George Osborne announced the decision when he was Chancellor, claiming that the measure would save the government £3.9bn a year.

The freeze was due to end in 2020, and the government has now confirmed that this will happen with 10million Brits getting a benefits hike.

How much will benefit payments go up by?

The amount of extra cash you’ll get after the benefits increase will depend on how much you’re claiming.

For example, a housing association tenant living with their partner and two children could be entitled to £1,707.34 a month under Universal Credit if they are both out of work.

When the benefits freeze ends, that monthly payment will increase to £1736.36, meaning an extra £29.02 each month.

The basic state pension is set to rise by £5.05 a week to £134.25, while those on the full flat rate pension introduced in 2016 will see payouts increase by around £6.60 per week to £175.20