It is reported that Rishi Sunak was banned from raising some benefits for help they keep pace with spiral inflation as result of out-of-the date government IT systems.
They said that the chancellor wanted to help those in check of welfare more in his spring statement, which set out measures to combat cost of living crisis but criticized for don’t go far enough to help least good off.
Last month, Sunak increased benefits by 3.1% based on on consumer price index of inflation last September.
He faced calls from economists across the political spectrum to significantly increase their more, given inflation of about 7% highest level since 1992.
The Times reported that Sunak considered doing it, but the Treasury Department was told “you can only do it once a day.” year and it was not the time of year so you can do it.”
Guilt has been leveled on outdated IT system which distributes certain inherited benefits such as unemployment benefits and employment and support permission.
Both are phased out replaced by universal credit, but hundreds of thousands of people Still remain on old schemes that use IT system about 40 years old.
Changes in previous benefit payments should be blocked in in autumn in order arrive to spring.
They are driven by paper-based systems and outdated, inflexible IT systems that take months to process. changes while universal credit updates can be performed in question of weeks.
representative for the Department for Jobs and Pensions said: “Parliament voted to complete the complex web of six inherited benefits in 2012 and how it is work coming to an end in 2024 we are fully transitioning to a modern allowance suitable for the 21st century.
“We acknowledge the pressure people are facing with in cost of life, so we provide support worth £22 billion next financial year including our family support fund.
“Parliament voted in March 2022 to raise benefits as usual.”
Contacted the Ministry of Finance for comment.
Despite growing concern that economy weakens in the background cost of live crisis, bank of England was on Interest rates are expected to rise on Thursday highest post-recession level caused by 2008 financial a crisis.
Households across the UK are under intense pressure from a sharp rise in the cost of living caused by record gasoline prices and rising gas and electricity costs exacerbated by Russia’s war in Ukraine.
Experts have warned the sensor for annual jump in consumer prices could reach 10% later this year5 times bank of England’s goal is 2%.