The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)
I am pleased to announce the proposed social security benefit and pension rates for 2018-19. I will place a copy of the proposed benefit and pension rates 2018-19 in the House Library. The annual uprating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2018, this will be the week beginning 9 April. A corresponding provision will be made in Northern Ireland.
The annual uprating process takes into account a variety of measures:
The basic and new state pension will be increased by the Government’s ‘triple lock’ commitment, meaning that they will be uprated in line with the highest of prices, earnings or 2.5% —in this case CPI at 3%.
The legislative requirement for the pension credit standard minimum guarantee is that it is increased at least in line with earnings. However to protect the poorest pensioners, the pension credit standard minimum guarantee will be uprated by the same cash amount as the rise in the full rate of the basic state pension.
Benefits linked to the additional costs of disability, and for carers, are increased by the annual rise in prices, as reflected in the Consumer Prices Index (CPI). A number of other elements—including Non-Dependant Deductions (NDDs)—will also be uprated in line with prices.
The majority of working-age benefits have been frozen at their 2015-16 levels for four years under the Welfare Reform and Work Act 2016.
The list of proposed benefit and pension rates also includes a change to the carer’s allowance earnings rule, which will be increased for 2018-19 from £116 to £120 a week.
Attachments can be viewed online at:
http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-11-27/HCWS268.
[HCWS268]