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Benefits rise brings relief but stark warning from poverty campaigners

Analysts say millions still face winter crisis despite Hunt’s decision to increase benefits in line with inflation

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Anti-poverty campaigners expressed relief at the chancellor’s decision to increase benefits by 10.1% next year but warned that millions of the poorest people would still face a fall in spending power as inflation soars.

The increase is lower than the current 11.1% rate of inflation and follows years of cuts to the real value of benefits affecting the lives of 9 million households – 7 million of which include someone who works.

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