Universal Credit: Uprating

(asked on 18th March 2022) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what her Department's rationale is for the decision to uprate universal credit by September 2021's three per cent Consumer Price Index (CPI) benchmark when CPI is expected to exceed six per cent at the point that policy is implemented.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 23rd March 2022

The Secretary of State undertakes an annual review of benefits and pensions. CPI in the year to September (published by the Office for National Statistics in October) is the latest figure the Secretary of State can use to allow sufficient time for the required legislative and operational changes to be made before new rates can be introduced at the start of the new financial year.

All benefit up-rating since April 1987 has been based on the increase in the relevant price inflation index in the 12 months to the previous September, as happens now. Using the same benchmark every year ensures consistency over time, allowing uprating to balance out over a number of years.

For up-rating 2022/23 the Secretary of State announced the outcome of her annual review to Parliament on 25 November 2021 and from April 2022 benefits and pensions will increase by 3.1%.

Reticulating Splines