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<p>September CPI has been the default inflation measure for the government’s statutory
annual review of benefits since 2011 because it allows sufficient time for the legislative
and complex delivery process to take place for new rates to come into force in April.</p><p>In
addition to uprating social security benefits, the government is also providing support
to families worth over £22 billion in 2022-23 to help families with cost of living
pressures. This includes cutting the Universal Credit taper rate and increasing work
allowances to make sure work pays, freezing alcohol duties to keep costs down, and
providing millions of households with up to £350 to help with rising energy bills.</p><p>At
the Spring Statement, the Chancellor went further, announcing an increase to the annual
National Insurance Primary Threshold and Lower Profits Limit to £12,570, and an additional
£500m to help the most vulnerable with the cost of essentials through the Household
Support Fund. Families and businesses across the UK will also benefit from a 12-month
cut in fuel duty of 5 pence per litre, the largest cash terms cut, that has ever been
applied to all fuel duty rates at once. This cut represents savings for consumers
worth almost £2.4 billion over the next year.</p><p>And, from 1st April 2022, the
National Living Wage (NLW) increased by 6.6% to £9.50 an hour for workers aged 23,
which will benefit more than 2 million workers. This means an increase of over £1,000
to the annual earnings of a full-time worker on the NLW.</p>
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