Daily Mail
October 19, 2011

A record rise in inflation could cost taxpayers billions of pounds through huge increases in payments to pensioners, retired state workers and benefit claimants.

As most workers face meagre wage rises or pay freezes, those on state support can expect their income to soar by 5.2 per cent.

Official figures published yesterday show the consumer price index – a key measure of inflation – rocketed last month from 4.5 per cent to its highest rate since records began.  As the Government uses September’s inflation rate to determine the annual increase to benefits and pensions introduced the following April, this paves the way for huge hikes worth almost £3.4billion.

Under the established rule, the State pension – currently worth £102.15 a week for those entitled to the full amount – would rise by £5.31 a week next year.

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