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Universal credit payments are set to rise for the first time in five years - but lower income families will still be left £580 worse off.

In April, those claiming Universal Credit will see their benefit payments rise by 1.7%, meaning people claiming £500 a month will get an extra £8.50 in their bank account, reports Mirror Online.

However, despite this increase, charities have issued a warning to lower income families who they say will still be left worse off as a result of a four year benefit freeze.

The Resolution Foundation's Adam Corlett said: “While the benefit freeze is over, its impact is here to stay with a lower income couple with kids £580 a year worse off as a result."

Worse, under current plans this gap will never be made up.

Mr Corlett added: "Because benefits will only keep pace with rising prices, the social security safety net will continue to erode – falling further behind earnings and the state pension,"

Worse, the inflation figures used to calculate the rise are based on a basket of goods representing "typical" spending.

So while overall prices rose 1.7%, essential bills such as utilities and council tax rose by more than this.

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Fidelity International's Ed Monk said: " It’s more discretionary items like clothing and footwear where prices are under more downward pressure."

April's rise applies to all working-age benefits, including Universal Credit , Tax Credits, Jobseeker's Allowance and Housing Benefit.

And the The Resolution Foundation calling for more to be done to stop people being forced further into poverty.

“With children born today facing the highest risk of poverty in 60 years, it’s time the main parties rethought their approach to welfare, and reprioritised their efforts towards supporting low and middle income families,” Corlett said.

But there's better news for pensioners, who will see increases more than twice as large in their payments.

Aegon pensions director Steven Cameron said: “The State Pension is currently increased by the ‘triple lock’ which is the highest of earnings growth, price inflation or 2.5% a year.

"With the September inflation rate now confirmed as 1.7%, state pensions are expected to rise by the higher earnings figure of around 4%."