Benefits will be raised in line with inflation, Jeremy Hunt has confirmed, as he pledged the Government will “continue to support families in difficulty”.

The Chancellor allayed charities’ fears that uprating would be done by the lower October inflation figure, as he acknowledged continued cost-of-living pressures which he said “remain at their most acute for the poorest families”.

Mr Hunt said the rise would amount to an average increase of £470 for 5.5 million households when it takes effect in April 2024.

Campaigners had voiced concern amid reports in recent weeks that benefits would not be raised in the usual way, instead using last month’s figure of 4.6%, rather than September’s higher inflation figure of 6.7%.

Mr Hunt told Parliament while delivering his autumn statement on Wednesday: “We will continue to support families in difficulty.”

He added: “I know there’s been some speculation that we would increase benefits next year by the lower October figure for inflation, but cost-of-living pressures remain at their most acute for the poorest families.

“So instead, the Government has decided to increase Universal Credit and other benefits from next April by 6.7%, in line with September’s inflation figure.

“An average increase of £470 for five-and-a-half million households next year – vital support to those on the very lowest incomes from a compassionate Conservative government.”

Noting that rent often makes up more than half of living costs for private tenants on the lowest incomes, he also pledged to answer calls from campaigners who said unfreezing housing allowance was “an urgent priority”.

He said: “I will therefore increase the local housing allowance rate to the 30th percentile of local market rents.

“This will give 1.6 million households an average of £800 of support next year.”