It is a pay cut; CPI is at 3.2% currently, has been above 3% for the past 12 months and therefore a 3.2% pay rise with rises in accomodation and food above inflaton is thus a pay cut...
the £931 is to counteract the devaluation in the pound over the pst 12 months. You cant consider that with above inflation accom charges and not call it a paycut I am afraid.