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