Social Security Benefits: Uprating

(asked on 27th June 2023) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps his Department is taking to (a) ensure regular and adequate uprating of benefits and (b) mitigate the risk of families falling into poverty.


Answered by
Mims Davies Portrait
Mims Davies
Minister of State (Department for Work and Pensions)
This question was answered on 4th July 2023

The Government is committed to reducing poverty and supporting low-income families. We will spend around £276bn through the welfare system in Great Britain in 2023/24 including around £124bn on people of working age and children, and around £152 billion on pensioners. Of this, around £79 billion will be spent on benefits to support disabled people and people with health conditions.

With respect to up-rating, the Social Security Administration Act 1992 places an obligation on the Secretary of State to review increases in prices and earnings each tax year, and to increase certain State pensions, additional-needs disability benefits and carers benefits at least in line with the relevant index. In the case of the new and basic State Pensions, the Government is committed to increasing these in line with the triple lock for the remainder of this Parliament. This is the highest of the increase in prices, the increase in earnings, or 2.5%.

Once he has completed his review of the increase in prices, he must also decide whether to up-rate other benefit rates, and if so by how much. In the up-rating for the tax year 2023/24, all relevant State pension and benefit rates were increased by 10.1%, in line with the increase in the Consumer Prices Index in the year to September 2022.

With 1.05 million job vacancies across the UK, our focus remains firmly on supporting individuals, including parents, to move into, and progress in work, an approach which is based on clear evidence about the importance of employment - particularly where it is full-time - in substantially reducing the risks of poverty. The latest statistics show that in 2021/22 working age adults living in workless families were 7 times more likely to be in absolute poverty after housing costs than working age adults in families where all adults work.

To support those who are in work, from 1 April 2023, the National Living Wage (NLW) increased by 9.7% to £10.42 an hour for workers aged 23 and over - the largest ever cash increase for the NLW.

At the Spring Budget, the Chancellor announced an ambitious package of measures designed to support people wherever they live in the UK to enter work, increase their working hours and extend their working lives.

The Government recognises that high childcare costs can affect parents’ decisions to take up paid work or increase their working hours which is why, from 28 June, the changes to the Universal Credit (UC) childcare element announced in Spring Budget 2023 will provide generous additional financial support to parents moving into paid work and/or increasing their working hours.

This government understands the pressures people are facing with the cost of living which is why we are providing total support of over £94bn over 2022-23 and 2023-24 to help households and individuals with the rising bills.

Reticulating Splines