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Pension credit rises from £124.05 to £130 a week for singles (and from £189.35 to £198.45 for couples).
Wider welfare and tax changes coming into force this month will also see council tax benefit funding cut, and working-age benefits and tax credit rises pegged at 1% – well below inflation – for three years.
As credit rises, corporate profits rise which means pay and dividends rise.
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In June, credit rose $11.9 billion, less than previously reported.
Nonrevolving credit rose $7.0 billion after a $5.6 billion increase in July.
June consumer credit rose $14.33 billion, at a 6.7percentt annual rate, to $2.586 trillion, the Federal Reserve said.
For all of 2007, consumer credit rose at the fastest clip in three years.
Bank credit rose by 21% during the same 12 months, well above the 10-15% increase the Central Bank regards as comfortable.
Shares of General Motors dropped 25percentt while the cost of protecting its credit rose, according to CMA, which tracks credit conditions.
Total consumer credit rose a seasonally adjusted $9.3 billion in April for an annual growth rate of 7.8percentt.
Consumer credit rose a seasonally adjusted $6.5 billion in May -- a 4.9percentt annual rate, the Federal Reserve reported today.
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