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, if she will make an assessment of the potential merits of uprating universal credit in line with the ONS HCI benchmarks for low-income households when it is published in May 2022.


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

There are currently no plans to use Office for National Statistics Household Cost Indices to up-rate Universal Credit. The Household Cost Indices to be published by Office for National Statistics in May are experimental statistics and still in development.

The Secretary of State undertakes an annual review of benefits and pensions, and the Consumer Prices Index (CPI) in the year to September this approach has been in place since 1987 is the latest figure that the Secretary of State can use to allow sufficient time for the required legislative and operational changes before new rates can be introduced at the start of the new financial year.

CPI has been the default inflation measure for the government’s statutory annual review of benefits since 2011.

CPI has a basket of goods and services that is relevant to pensioners and benefit recipients, is the target level of inflation used by the Bank of England and is an internationally recognised measure.

Reticulating Splines