Heard similar today, and that government thinking is that disability payments and Pensions will go up with RPI, other benefits with Average Wages index on the argument that in work benefits should rise with wages or it would be inflationary.
and I think the view is also that it would be unfair if those on benefits who work (or don’t, but could) have a bigger percentage increase in their income than those who are working but don’t receive any benefits. I get that, but where that logic fails is when it comes to state pensions, as retired folk (and I know I’m generalising here, as there are always exceptions) generally have far more disposable income than working age people who still have children at home, mortgages to pay, commuting costs etc etc. Looking on the bright side, at least PIP will go up by circa 10% (albeit Motability will benefit from the mobility part) and we will all benefit from the pensions triple lock, in the future if not now!