While the final amounts will have to be confirmed by the chancellor in the Autumn Budget next month, the Department for Work and Pensions (DWP) used the September 2024 figures for the basis of this year's inflationary rise.

Last year that was around 1.7 per cent, but this year it's much higher at 3.8%.

For pensions, the increase is likely to be even higher, taking into account the Triple Lock pledge, as the average increase in total wages across the UK for May to July was 4.8%.

It's also worth bearing in mind that the benefit cap was frozen for 2025/26 and may be again, so this may affect the total amount of benefit you can get.

For a single claimant of under 25 would increase from £316.98 a month to £329.16 and for someone single aged 25 or over that would go up from £400.14 a month to £416.15

Many benefits are not claimed each year. Use a benefits calculator to find out what other benefits you might be entitled to, for example, Personal Independence Payment (PIP) if you have a long-term health condition or disability.

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The September inflation rate is typically used to decide the level of increase for many benefits, such as universal credit, tax credits and disability benefits.

This rate is also a key part of the pension triple lock, which is used to decide how much pensions will increase by in the following April.

However, the increase is based on either this inflation rate, average earnings growth between May and July, or 2.5%.

Given earnings growth was confirmed as 4.8%, the inflation rate would only have been used if there was a shock acceleration beyond this level.

Tamsin Powell, Consumer Finance Expert at Creditspring, says: "The September inflation figure directly determines how much millions of pensioners and benefit claimants will see in their payments next April. In practice, that means that today's figure of 3.8% will lead to around a similar increase in April 2026. But in reality, the system often delivers too little, too late. The long lag between the data and the uprating means support rarely keeps pace with what people are actually paying right now for essentials.

"Any rise will offer some relief, but a modest increase next spring won't be enough to rebuild financial resilience or help households recover from the ongoing cost-of-living squeeze. We need a more responsive system that doesn't just react to inflation headlines but actively helps people stay afloat, build resilience, and access safe, affordable credit when life's surprises hit."

A rise in inflation in September usually means higher-than-expected spending for the Chancellor.

However, higher inflation would also contribute to a higher tax take, with the September rate also typically used to calculate some annual tax increases such as for business rates.