Part of the rationale for capping the increase in basic benefits to less than inflation was to signal approval for those in work and who had not enjoyed a similar pay-rise.
A pay-rate which the authorities do have direct control over is the minimum wage, and this is to be increased by 12p per hour to £6.31 for those 21 and over 5p to £5.03 for those between 18 and 20. That is, less than inflation.
