Tuesday, 13 October 2015

No increase in most benefits

The September Consumer prices index, or CPI, is used to uprate many benefits, but the impact of today's negative rate (an annual fall of 0.1%) will be limited because...

**The legislation allows for uprating but not downrating, so the cash value of benefits will be maintained.

**Many benefits are being subjected to a 4 year freeze anyway.

This is what the Department for Work and Pension says:

The Government is currently taking through legislation to freeze most working age benefits for the next four years from 2016/17, including the main rates of Jobseeker’s Allowance, Income Support, Employment and Support Allowance, Housing Benefit and Universal Credit.

The benefits freeze excludes pensioner benefits, benefits relating to the additional cost of disability and care, and statutory payments. We have protected the incomes of pensioners with the Triple Lock and the basic State Pension will rise by the highest of the growth in earnings, prices or 2.5%.

Public Service Pensions follow CPI, along with the "statutory payments" which are sick pay and maternity pay, paternity pay etc

Pension Credit is not tied to CPI - it tends to rise alongside earnings - but State Second Pension is.

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