Government will increase benefits by the rate of inflation, costing £5 billion.

The Government has announced the end of the benefits freeze, four years after it was introduced. Benefits will be uprated in line with inflation from April 2020.

Since April 2016, benefits such as universal credit, tax credits and local housing allowance have been frozen. The rates are now 6% lower in real terms, saving the Treasury £4.4 billion last year alone.

The Government will also confirm that the state pension will rise by 3.7% next year under the triple lock.

Labour has responded to the planned announcement by describing it as “cynically timed”.